The Era of Mercantilism
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Questions and Answers

Which country enjoyed the greatest benefits of mercantilism between 1640 and 1660?

  • Portugal
  • Great Britain (correct)
  • Spain
  • France
  • What was the main goal of mercantilism?

  • To decrease a nation's wealth through exports
  • To decrease a nation's wealth through imports
  • To increase a nation's wealth through exports (correct)
  • To increase a nation's wealth through imports
  • What were the Acts of Trade and Navigation?

  • Laws designed to increase trade with other nations
  • Laws designed to encourage free trade between colonies
  • Laws designed to make American colonies more dependent on manufactured products from Great Britain (correct)
  • Laws designed to make American colonies more independent from Great Britain
  • Which country monopolized the slave trade and transported slaves from English ports to America?

    <p>Britain</p> Signup and view all the answers

    What economic policy did Britain use to secure its interests in the New World?

    <p>Mercantilism</p> Signup and view all the answers

    What did Britain ship back to England from the colonies?

    <p>Raw materials</p> Signup and view all the answers

    What led to the American Revolution?

    <p>Heavy taxation</p> Signup and view all the answers

    Which goods could only be sold to British merchants according to British authorities during this time?

    <p>Sugar, tobacco, cotton, indigo, furs, and iron</p> Signup and view all the answers

    Who argued that free trade promotes a flourishing economy rather than mercantilism?

    <p>Adam Smith</p> Signup and view all the answers

    Which company was given a monopoly in the trade of slaves by the British in the 1660s?

    <p>Royal Adventurers Trading to Africa</p> Signup and view all the answers

    According to Adam Smith, why did he find the institution of slavery morally abhorrent?

    <p>Because it robbed enslaved persons of their liberty</p> Signup and view all the answers

    How did Adam Smith view slavery in terms of its economic impact?

    <p>He believed it was detrimental to prosperity</p> Signup and view all the answers

    What did Adam Smith consider slavery to be in relation to the mercantilist state?

    <p>A continuation of the mercantilist system</p> Signup and view all the answers

    According to Adam Smith, what did he believe was the basis of slavery and European colonialism?

    <p>The luck or fortune of European civilization</p> Signup and view all the answers

    According to Adam Smith, why did he believe free labor was more economically efficient than slavery?

    <p>Free labor had more incentives to maximize output</p> Signup and view all the answers

    According to Adam Smith, what was the effect of monopoly on wages and capital?

    <p>Monopoly decreased wages and capital</p> Signup and view all the answers

    According to Adam Smith, what was the effect of a monopoly on capital accumulation in the colony trade?

    <p>It would decrease the marginal return on capital</p> Signup and view all the answers

    According to Smith, how did the monopoly in the colony trade impact the improvement of land?

    <p>It hindered the improvement of land</p> Signup and view all the answers

    According to Smith, how did the monopoly in the colony trade affect the rent of land?

    <p>It decreased the rent of land</p> Signup and view all the answers

    According to Smith, what impact did the monopoly in the colony trade have on the market rate of interest?

    <p>It increased the market rate of interest</p> Signup and view all the answers

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