Colonial America and Mercantilism

What was the concept of mercantilism?

• The belief that there is a finite amount of wealth in the world

• The belief that countries should compete to acquire as much wealth as possible

• The belief that government policy should regulate trade to export as much as possible

• All of the above

Which policies were usually included in mercantilist trade regulation?

• Tariffs and other taxes on imports

• Free trade and open markets

• Encouragement of competition between countries

• No regulations on trade

What were the British colonists in the United States exporting to Great Britain?

• Luxury items imported from London

• Raw materials such as tobacco, rice, and codfish

• Finished goods manufactured in the colonies

• Services for tea, clothing, and eyeglasses

What were the Navigation Acts imposed by the British Parliament?

• Laws to regulate and monopolize American trade

• Laws to promote free trade and competition

• Laws to encourage colonial market development

• Laws to protect American merchants

What was the purpose of the Molasses Act?

• To ban New England merchants from buying French sugar

• To promote the production of rum in the American colonies

• To regulate the trade of molasses between colonies

• To increase tax revenue for the British Empire

What was the main reason for the passage of new taxes and tariffs by the British Parliament?

• To regulate and control American trade

• To promote economic growth in the colonies

• To reduce the national debt of Britain

• To encourage colonial independence

What led the American colonies to fight the American Revolution and declare their independence?

• The desire for religious freedom

• The need to protect their natural commercial rights

• The ambition to establish a monarchy

• The goal of expanding their territory

Which of the following statements is false about a free trade market.

• Free trade encourages competition because it allows consumers to choose from a wide variety of products from different countries.

• In a free trade market, businesses are usually privately owned, and the government's role is limited. Companies compete based on their ability to provide what consumers want.

• In a free trade market, countries allow goods and services to flow across their borders with few restrictions. There are usually no or very low tariffs on imports.

• In free trade markets, governments had a lot of control over the economy.