Econ Unit 1

Which of the following best describes a key challenge of the barter system?

• The need for government regulation

• The requirement for precious metals

• The coincidence of wants between trading parties

• The lack of agricultural products

What was a primary characteristic of manorialism in medieval Europe?

• Free movement of labor between manors

• Serfs owned the land they worked on

• Lords provided military protection to neighboring kingdoms

• Lords granted land use rights in exchange for labor and goods

How did mercantilism differ from modern economic systems?

• It focused on international cooperation

• It promoted free trade between nations

• It emphasized the accumulation of precious metals as wealth

• It discouraged government intervention in trade

Which feature distinguishes a command economy from other economic systems?

• Emphasis on free market principles

• Government control over production and resource allocation

• Focus on international trade

• Reliance on private enterprise

What advantage did minted coins provide over earlier forms of currency?

• They were made exclusively of gold

• They could only be used by nobility

• They were impossible to counterfeit

• They offered standardized value and official authentication

What was the primary characteristic of proto industrialization that distinguished it from later industrial production?

• Production occurred primarily in urban centers

• Manufacturing was centralized in large factories

• Production took place in homes and rural settings

• It relied exclusively on skilled craftsmen

How did the enclosure movement impact agricultural communities in Europe?

• It created more communal farming opportunities

• It led to the displacement of small-scale farmers

• It decreased overall agricultural productivity

• It strengthened feudal farming practices

Which of the following best describes the key advantage of joint stock companies during the age of exploration?

• They eliminated all financial risks for investors

• They allowed only wealthy merchants to invest

• They provided complete government control

• They enabled risk-sharing among multiple investors

What is the primary distinction between private property rights and communal ownership?

• Private property rights allow for exclusive control and transfer of assets

• Private property rights require government ownership

• Private property rights prohibit commercial use

• Private property rights mandate collective decision-making

Which feature of corporations provides the greatest incentive for investment?

• Government oversight of all operations

• Unlimited liability for shareholders

• Limited liability protection for shareholders

• Restricted ability to own property