Economic Systems and Historical Review

Mercantilism is an economic theory that emphasizes the importance of accumulating wealth through trade and maintaining a positive balance of trade.

• True

• False

Which of the following is a characteristic of imperialism?

• Isolation from other countries

• Expansion of a country's power and influence through diplomacy or military force

• Reduction of military forces

• Promotion of free trade

The Industrial Revolution began in which country?

• France

• Germany

• United States

• United Kingdom

Traditional economic systems are often found in rural and farm-based areas.

• True

• False

In a command economic system, who makes the major economic decisions?

• Individual consumers

• Private businesses

• The government

• International organizations

Communism aims to create a classless society.

• True

• False

Which of the following is a feature of socialism?

• Private ownership of all resources

• Equal distribution of wealth

• No government intervention in the economy

• Complete reliance on market forces

Capitalism is characterized by:

• Government ownership of all businesses

• Central planning of the economy

• Private ownership and free markets

• Equal distribution of resources

Mercantilism encourages countries to export more than they import.

• True

• False

Which of the following was a major effect of the Industrial Revolution?

• Decrease in urban populations

• Increase in handmade goods

• Growth of factories and urbanization

• Decline in technological advancements