Understanding Mercantilism and Its Impact

The video discusses the shift towards absolutism in Europe from 1648 to 1815, focusing on the economic system of mercantilism. Mercantilism is defined as a state-driven economy aimed at accumulating mineral wealth through a favorable balance of trade. The video explains the role of colonies in providing raw materials and markets for manufactured goods, leading to intense rivalries among European states. It also highlights the impact of mercantilism on global trade, including the rise of the triangular trade and increased demand for enslaved labor. The video concludes with a summary and resources for further study.

What economic system supported the shift towards absolutism in Europe?

• Socialism

• Mercantilism

• Feudalism

• Capitalism

How does a command economy differ from a market economy?

• Command economy is driven by private decisions, while market economy is state-driven.

• Command economy is state-driven, while market economy is driven by private decisions.

• Both are driven by private decisions.

• Both are state-driven.

In mercantilism, what is considered the measure of wealth?

• Gold and silver

• Military strength

• Population size

• Land ownership

Why did mercantilism lead to intense rivalries among European states?

• Because wealth was seen as finite, like a pie with limited slices.

• Because wealth was seen as infinite.

• Because states wanted to share wealth equally.

• Because states were uninterested in wealth.

What is a key strategy for maintaining a favorable balance of trade in mercantilism?

• Focusing solely on domestic trade

• Importing more goods than exporting

• Equal import and export

• Exporting more goods than importing

What role did colonies play in the mercantilist system?

• They were sources of manufactured goods.

• They provided raw materials and new markets for goods.

• They were independent economic entities.

• They were used solely for military purposes.

What was the purpose of the British Navigation Acts?

• To restrict trade to land routes only

• To encourage trade with rival nations

• To mandate trade only with British ships and crew

• To allow free trade with any country

How did mercantilism contribute to the rise of a new consumer culture in Europe?

• By eliminating the middle class

• By focusing solely on European goods

• By increasing the demand for New World products and introducing new foods

• By decreasing the demand for New World products

What was a significant consequence of the increased demand for labor in the New World?

• A decrease in global trade

• An increase in the African slave trade

• A decline in agricultural production

• A rise in European immigration

What was the Triangular Trade?

• A trade route between Europe, Asia, and Africa

• A three-part trade system involving Europe, Africa, and the Americas

• A trade agreement between three European countries

• A trade route that only involved the Americas