Colonial Economic Policies and Mercantilism

What was the core idea behind mercantilism?

• The belief that wealth is infinite and shared freely.

• The idea that there is a finite amount of wealth in the world, leading to competition among countries.

• A system where countries prioritize importing goods over exporting.

• A policy promoting free trade and open markets.

In the mercantilist system, what was the primary economic relationship between colonies and their home country?

• Colonies manufactured goods and sold them to the home country.

• Colonies sold raw materials to the home country, which then manufactured goods and sold them back to the colonies.

• Colonies and the home country traded finished goods equally.

• Colonies were independent economic entities, trading freely with any nation.

What was a primary goal of the Navigation Acts imposed by the British Parliament?

• To encourage free trade between the colonies and all European nations.

• To allow colonists to develop their own manufacturing industries.

• To regulate, monopolize, and tax American trade for Britain's benefit.

• To reduce the cost of imported goods for American colonists.

What was a major financial outcome for Britain after the French and Indian War?

• Britain experienced a significant economic boom due to new territories.

• Britain incurred a massive debt, leading to increased taxes and tariffs on the colonies.

• Britain's annual budget saw a surplus, allowing for reduced taxes.

• Britain established free trade agreements with its former enemies.