Mercantilism and Capitalism

Mercantilism can best be described as what?

• the idea that a colony should be self sufficient and able to provide for itself
• the idea that a nation needs to strongly equip its colonies to defend itself in case of foreign attack
• the idea that the religion of a colony should differ from the religion of the mother country
• the idea that a nation�s power is related to its wealth and needs a favorable balance of trade with its colonies

The joint-stock company, introduced during the Commercial Revolution, would most resemble what?

• private enterprise
• partnership
• corporation
• monopoly

Colonization supported the European economic policy of mercantilism by providing what?

• a way to get rid of excess silver and gold
• a place to store raw materials for future use
• finished products to sell in Europe
• a market for selling goods

The business endeavors in the English colonies in America led to the emergence of an economic system where most of the production was privately owned. What is the system called?

• socialism
• communism
• mercantilism
• capitalism

What is capitalism?

• government control of production and goods
• private control of production and goods for profit
• employee control of production, goods, and profit
• international control of production and goods for profit

What helped the middle class to grow?

• Guild memberships increased.
• Peasants made more money.
• More people started businesses.
• The nobles sold land to peasants.

Under which economic system would American entrepreneurs and investors most likely be found?

• mercantilism
• capitalism
• communism
• feudalism

What does the policy of mercantilism, which was adopted by the European powers in the 16th and 17th centuries, mean?

• monarch�s power is dependent on his wealth as it allows for him to pay his subjects for support.
• A country�s power is dependent on its wealth as it allows for nations to build strong militaries and purchase vital goods.
• A monarch�s power is dependent on his wealth as it allows for a monarch to build a strong military and purchase vital goods.
• A country�s power is dependent on the military as it allows for effective wars to be waged.

Which of the following was NOT a principle of mercantilism?

• Export more than you import.
• Import more than you export.
• Settle as many colonies as possible
• Gain as much gold and silver as possible.

�Colony� refers to:

• An increase in population for a country
• An expedition sent to explore a foreign land
• A settlement in a distant land whose citizens keep close ties to their parent country.
• A group of individuals who unite for a common cause.