Economic Principles and Concepts Assessment

The video tutorial covers European expansion, focusing on the Colombian Exchange, mercantilism, and capitalism. It explains the impact of the Colombian Exchange on trade and the spread of goods and diseases. The concept of mercantilism is explored, highlighting how nations increased wealth through colonies. The Commercial Revolution is introduced as a significant change in commerce. Supply and demand principles are discussed, along with the rise of entrepreneurship and capitalism, leading to the emergence of a middle class.

What was the primary focus of the Colombian Exchange?

• Establishing new colonies

• Trading goods across the Atlantic

• Exchanging cultural practices

• Spreading religious beliefs

In mercantilism, how does a nation primarily increase its wealth?

• By reducing taxes on imports

• By increasing domestic consumption

• By importing more than exporting

• By exporting more than importing

What role did colonies play in the mercantilist system?

• They were centers for cultural exchange

• They were independent trading partners

• They were sources of natural resources

• They were used to spread religion

What was a key feature of the Commercial Revolution?

• A shift in the way goods were bought and sold

• The end of colonial expansion

• A decline in global trade

• The rise of feudalism

How does supply and demand affect pricing?

• Low supply and high demand increase prices

• High supply and high demand decrease prices

• Low supply and high demand decrease prices

• High supply and low demand increase prices

What strategy would a smart merchant use to maximize profits?

• Avoid trading in scarce goods

• Buy goods where they are expensive and sell where they are cheap

• Only trade within local markets

• Buy goods where they are cheap and sell where they are in high demand

Who is an entrepreneur?

• A government official managing trade

• A person who works for a large corporation

• A person who starts a business and takes financial risks

• A consumer buying goods

What is a joint-stock company?

• A non-profit organization

• A government-owned enterprise

• A company where multiple people invest and share profits

• A company owned by a single individual

How did the rise of entrepreneurs affect society?

• It resulted in the growth of the middle class

• It caused a decrease in global trade

• It eliminated the need for colonies

• It led to the decline of the middle class

What distinguishes capitalism from mercantilism?

• Capitalism focuses on national wealth, mercantilism on individual wealth

• Capitalism emphasizes individual profit, mercantilism focuses on national wealth

• Both focus on individual wealth

• Both focus on national wealth