7-1.1 to 7-1.4 Exploration, Mercantilism, Growth of Capitalism

What was an essential aspect of the economic theory of mercantilism?

• free trade

• capitalism

• colonies

• paper currency

What was the main idea behind mercantilism?

• Colonies existed to make a profit for their mother country

• Colonies were used to house prisoners from the mother country

• Colonies were allowed to do whatever they wanted

• Colonies were setup to help with overpopulation in the mother country

How did European countries discourage imports of foreign goods to their colonies?

• They placed tariffs on exports

• They placed tariffs on imports

• They forbid the sale of foreign goods in their country

• They spread lies about the quality of foreign goods

What important resource motivated Europeans to setup colonies?

• manufactured goods

• effective governments

• new technologies

• raw materials

What is a favorable balance of trade?

• A nation has more exports than imports

• A nation has more imports than exports

• A nation's imports and exports are equal

• A nation has more trade than their neighbor

How did European countries control trade with their colonies under mercantilism?

• European nations sold raw materials to their colonies

• European nations bought finished goods from their colonies

• European nations required that colonies only trade with the mother country

• European nations did not tax goods from other countries

Which group began to form the middle class during the 17th and 18th centuries?

• Merchants
• Peasants
• Priests
• Nobles

In which type of economy do individual buyers and sellers interact in the marketplace to exchange goods and services?

• feudalism
• mercantilism
• market economy
• command economy

What is capitalism based upon?

• government ownership of resources
• private ownership of resources 
• monarch's ownership of resources 
• no ownership of resources 

What area was known as the New World?

• Australia

• Africa

• the Americas

• Antarctica