Age of Exploration: Mercantilism/Capitalism

Why did European nations practice mercantilism during the Age of Exploration?

• To import more than they export

• to start wars

• to keep end wars.

• to become more powerful by getting money (Gold/Silver)

How did nations who used mercantilism decrease imports, or how did they make it harder to buy products and goods from other nations?

• by imprisoning people who purchased imported goods

• by creating propaganda about foreign-made goods

• by destroying all imported goods

• by placing high tariffs on foreign goods

Who controls and regulates trade in a mercantilist economy?

• the indivdual citizens

• the government (Mother Country)

• only tax payers

• the voters

How do colonies benefit the mother country in a mercantile system?

• Colonies provide the mother country with raw materials and new markets.
• Colonies sell finished products to the mother country.
• Colonies export raw materials to other countries.
• Colonies purchase finished products from other countries.

Which of the following describes a favorable balance of trade?

• The mother country should import more than it exports.
• The mother country should export more than it imports.
• The mother country should export the same amount of goods as other countries.
• The mother country should import all of its resources from other nations.

What was the main component of feudalism?

• government regulates trade
• building up bullion for homeland
• land ownership for protection
• exports have greater value than imports

What was an advantage for European nations that had colonies?

• They had a constant source of wealth in the form of gold and silver without any effort.

• They had a source of slave labor for factories in the mother country.

• They had markets for selling goods manufactured in Europe.

• They had a place to relocate undesirable citizens.

During the Age of Exploration, why did European powers strive for a favorable balance of trade?

• to compete against their colonies for markets

• to show that their products were better than those made in the colonies

• to gain gold and silver and become more powerful

• to gain many different types of weapons in case of war

What is the defining characteristic of capitalism?

• government ownership of all markets

• private ownership of resources and production

• exploitation of slave labor

• development of foreign markets

The rise of the middle class and the creation of private businesses led to what kind of economic system?

• command economy

• barter economy

• market economy

• natural economy