AP World 5.7

Mercantilism was the dominate economic system in the previous time period 1450-1750. What best explains what Mercantilism is?

• Mercantilism is a financial strategy focused on maximizing consumer spending and reducing exports.
• Mercantilism is an economic system that promotes government regulation of a nation's economy to enhance state power, focusing on trade surplus and wealth accumulation.
• Mercantilism is an economic theory advocating for free trade and minimal government intervention.
• Mercantilism is a system that encourages local production over international trade to boost economy.

Under Mercantilism, the "mother countries" see their colonies as what?

• Military outposts for defense purposes.
• Tourist destinations for leisure activities.
• Sources of raw materials and markets for goods.
• Cultural centers for artistic exchange.

Which economic system, championed by Adam Smith, replaced mercantilism during the Industrial Revolution by advocating for less government intervention and more market-driven decisions?

• Mercantilism

• Communism

• Free Market Economics

• Socialism

What best describes Smith's idea of Laissez Faire?

• Complete government control over industries.
• Heavy regulation of market activities.
• Minimal government intervention in the economy.
• Encouragement of monopolistic practices.

Some Criticisms of the Free Market (aka Capitalism) were

• High levels of job security
• Caused suffering and inequality of the working class that needed government regulation to address

• Excessive government regulation
• Universal basic income

What term describes a company that is established and controlled in one country but also establishes large operations in many other countries?

• Domestic enterprise

• Multinational conglomerate

• Transnational corporation

• State-owned enterprise

What new financial practice allowed large-scale businesses to raise funds by selling small portions of ownership, enabling individuals to invest and share in potential profits?

• Bonds

• Stocks

• Loans

• Mutual funds

What was a major effect of western industrialized nations becoming richer between 1800-1900

• A higher standard of living and greater access to consumer goods

• Increased agricultural production in Europe.
• Decreased trade with non-industrial nations.
• Reduced urbanization in industrial cities.

This also lead to the creation of the ___________________ who were wealthy enough to purchase some of these new consumer goods that improved their lives

• upper class
• lower class
• working class
• middle class

How does this image relate to the idea that the industrial revolution as well as free markets made mass consumerism possible?

• The image illustrates the variety of non essential goods that could now be afforded by workers through mass production

• The image illustrates how mass consumerism led to the decline of free markets.
• The image depicts a time before the industrial revolution and its impact on society.
• The image shows how traditional markets limited consumer choices and production.