The Economics of the Industrial Revolution [AP World History Review—Unit 5 Topic 7]

True or False: The free market system was perfectly capable of distributing wealth evenly, especially among the working class.

• True

• False

The Hong Kong and Shanghai Banking Corporation is an example of a transnational corporation because...

• it is a corporation controlled by China and operated in France and Germany.

• it is a corporation controlled by Britain and operated in China and Japan.

• it is a corporation controlled by multiple European countries and operated in India. 

• It is a corporation controlled and operated exclusively in Britain.

Stock markets and limited liability facilitated economic activity because...

• they allowed limited investment into businesses and ensured that the risks extended beyond the money invested.

• they allowed more investment into businesses and ensured that the risks were limited to only the money they put in.

• they challenged accumulation of wealth and forced the upper class to distributed the wealth among the poor.

• they encouraged workers to revolt and establish a permanent war economy.

True or False: Generally speaking, the industrialized nations of the west grew wealthier after the 1800s.

• True

• False