Unit 10 Lesson 38.6 Impact of Exploration

What impact did exploration have on European commerce and economies?

• It led to an increase in trade and the flow of goods, raw materials, and precious metals into Europe
• It had no impact
• It led to a decrease in trade
• It led to a decrease in trade and the flow of goods, raw materials, and precious metals into Europe

What is capitalism based on?

• Investing money for charity
• Investing money for profit
• Investing money for political power
• Investing money for personal gain

What is a market economy based on?

• Government regulation
• Supply and demand
• Fixed prices
• Bartering

What was the cottage industry?

• A system of factories operated by capitalists
• A system of government regulation of trade
• A system of bartering goods and services
• A system of working from home to turn raw materials into finished products

What was mercantilism?

• A new economic policy that focused on charity
• A new economic policy that focused on building up wealth to increase a nation's power
• A new economic policy that focused on political power
• A new economic policy that focused on reducing a nation's power

What did European rulers do to increase their nation's power under mercantilism?

• They tried to reduce the products they bought from their colonies and to increase the items they sold to their colonies
• They tried to increase the products they bought from other countries and to reduce the items they sold
• They tried to reduce the products they bought from other countries and to increase the items they sold
• They tried to increase the products they bought from their colonies and to reduce the items they sold to their colonies

What did merchants do with their profits from trading and selling goods from around the world?

• They used their profits to finance still more voyages and to start trading companies
• They used their profits for charity
• They used their profits for political power
• They used their profits for personal gain

What did people begin investing money in?

• Trading companies
• Religious institutions
• Charity organizations
• Political campaigns

What did sellers do if the supply of an item was large and few people wanted it?

• They kept the price the same
• They raised the price
• They lowered the price
• They stopped selling the item

What did sellers do if an item was scarce and many people wanted it?

• They stopped selling the item
• They kept the price the same
• They raised the price
• They lowered the price