Question

In medieval times, philosophers and theologians argued that the exchange of goods should be governed by?

Answer 1

In medieval times, philosophers and theologians argued that the exchange of goods should be governed by just price theory, which focused on determining value based on inherent qualities and labor involved, rather than market forces. This theory aimed to promote fairness and prevent exploitation in economic transactions.

Step-by-step explanation:

In medieval times, philosophers and theologians argued that the exchange of goods should be governed by just price theory. According to this theory, the value of a good should be determined by its inherent qualities and the labor involved in producing it, rather than by market forces of supply and demand. The goal was to ensure fairness and prevent exploitation in economic transactions.

For example, Thomas Aquinas, a prominent medieval theologian, argued that prices should be set at a level that provides a reasonable profit to producers while also considering the needs of consumers. This approach aimed to promote social harmony and prevent excessive greed in the marketplace.

Overall, the idea of a just price was rooted in moral and ethical considerations, making it a subject of philosophical and theological debate during the Middle Ages.

Answer 2

In medieval times, philosophers and theologians argued that the exchange of goods should be governed by social obligations and ties. The feudal system during the Middle Ages emphasized the obligations and ties between serfs, lords, and kings, while precapitalist societies relied on gift exchange, redistribution, and debt. However, in the 18th century, Adam Smith advocated for a free market and competition among producers.

Step-by-step explanation:

In medieval times, philosophers and theologians argued that the exchange of goods should be governed by social obligations and ties. The feudal system during the Middle Ages emphasized the obligations and ties between serfs, lords, and kings, framing the economic and political world of that time.

The concept of gift exchange, redistribution, and debt was also prevalent in precapitalist societies. Instead of direct barter, individuals relied on mutual relationships of credit and debt where goods were circulated through society based on trust and future obligations.

Adam Smith later advocated for a different approach in the 18th century. He argued for a free market and competition among producers, believing that trade could be mutually beneficial for all parties involved.