Mini Unit 10 Review

What economic system controlled workers, wages, and prices in the 18th century?

• Capitalism
• Mercantilism
• Socialism
• Feudalism

Which of the following factors contributed to the rise of European wealth during the Early Modern Era?

• Increased regulation
• Decreased money supply
• Global trade
• Limited private property rights

Who is credited with developing the theory of free market capitalism?

• Karl Marx
• John Maynard Keynes
• Adam Smith
• David Ricardo

What did Adam Smith believe about the role of the state in the economy?

• It should control prices
• It should regulate production
• It should not interfere with the market
• It should own all businesses

According to Smith, what would happen if a business charged too much for its products?

• It would become a monopoly
• It would be supported by the government
• Competitors would take its customers
• It would gain more market share

What is the 'Invisible Hand' in Smith's economic theory?

• Government intervention
• Consumer demand
• Self-interest guiding the market
• Guild regulations

What did the reduction of state and guild control lead to in the economy?

• Higher prices
• Increased innovation
• Less competition
• More regulations

Which of the following was NOT a characteristic of mercantilism?

• High tariffs
• State control of industries
• Free market pricing
• Guild regulations

What role did banks play in the shift to capitalism?

• They limited investments
• They provided loans for businesses
• They controlled prices
• They enforced guild regulations

How did private property rights contribute to economic growth?

• By limiting competition
• By allowing individuals to pursue their interests
• By increasing state control
• By reducing innovation