AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
Merchants in seventeenth and eighteenth century Europe moved production to the countryside because they could not expand within towns due to the power of urban craft guilds. These guilds controlled production, regulated prices, restricted entry of new producers, and held monopoly rights granted by rulers. It was therefore impossible for new merchants to set up or expand businesses in towns. In the countryside, poor peasants and artisans — who had lost access to common lands — eagerly worked for merchants to supplement their income from cultivation.
Source: Chapter 4, Proto-Industrialisation section
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What examiners look for (3 marks):
Don't just say "guilds were powerful" — briefly state what they did (regulated prices, restricted entry, held monopolies). The answer about peasants' motivation (loss of commons, need for extra income) completes the picture for full marks.