8.3.6 Apex Quiz Review Patterns of Trade

Which concept does Adam Smith use to describe the amount of money commonly paid for any commodity?

• Natural price

• Market price

• Demand price

• Effectual Price

Which development contributed to the eventual rise of capitalism in Europe?

• The expansion of the consumer market during the Commercial Revolution

• The decrease in resources coming from colonies during the Age of Exploration

• The shift from mercantilism to an agricultural economy during the early Middle Ages

• The increase in government regulation during the early Industrial Revolution

Which development during the Commercial Revolution laid the foundation for capitalism in Europe?

• The failure of joint stock companies to reduce the financial risk for investors

• The decline in European economies due to mercantilist policies

• The employment of more workers to transform raw materials into finished goods

• The expansion of the agricultural economy due to more productive farming techniques

According to Adam Smith, how should the wealth of countries be measured?

• In gold, which each country should hold in its reserves

• In productivity, which is based on the goods each country produces

• In population, which each country should attempt to increase

• In crops, which reveal the ability of the land to support the people

How did the Industrial Revolution change economies throughout Europe?

• It introduced systems of mass production.

• It introduced systems of mercantile production.

• It introduced systems of agricultural production.

• It introduced systems of government production.

How did the Industrial Revolution change labor in Europe?

• It decreased specialization of labor.

• It increased the mining of gold.

• It increased farm labor.

• It increased the division of labor.

How were the Commercial Revolution and the Industrial Revolution similar?

• Both created fundamental changes in the European economy.

• Both reduced the size and political power of the European middle class.

• Both strengthened the system of mercantilism in Europe.

• Both resulted in increased government control over European trade.

What is one common outcome of the Industrial Revolution and the Commercial Revolution?

• Consumer goods became more important to European economies than agricultural products.

• The free enterprise system became the most important economic philosophy in Europe.

• Job opportunities decreased as more people moved to large European urban centers.

• The system of joint stock companies was weakened by the European middle class.

Which of the following groups of people is an example of a corporation?

• A group of people who are paid to work in a factory

• A group of people who write the laws for a country

• A group of people who grow their own vegetables to eat

• A group of people who own a business selling pepper

An American restaurant owner convinces several friends to help him pay the costs to open a second location. If the new restaurant succeeds, the owner and his friends will share the profits. If it fails, however, all of them will split the losses. This situation is most similar to which of the following?

• The expansion of the consumer market

• The regulation of businesses under mercantilism

• The changing of prices according to supply and demand

• The creation of a joint stock company