Reference no: EM131387135
1. In many parts of Europe during the mid-1770s, governments gave guilds, or organizations of producers, the authority to control who was allowed to produce a good, the amount of the good produced, and the price charged for the good.
Would you expect more competition among producers in a guild system or in a market system?
A. A market system, but only if government imposes regulations similar to those instilled by a guild.
B. A market system is clearly more competitive because it allows for the free entry and exit of producers.
C. A guild system, because its charter could require that members follow competitive practices.
D. No discernable difference exists between the two systems regarding competitiveness.
2. Regarding the entity occupying the center (of attention) in the two systems, it appears that
A. both systems give equal emphasis to producer and consumer.
B. the producer is at the center of the market system while the guild system centered on the consumer.
C. both systems place the consumerconsumer at the center.
D. the consumer is at the center of the market system while the guild system centered on the producer.
3. With regard to the innovation of new products and technologies, the fact that it is open new producers suggests that the market system is LESS OR MORE ? conducive to such innovation.
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