Deck 4: The Economic Relations of the Colonies

Question 1

Mercantilism was an economic policy that called for

A)the use of taxes and subsidies to control trade.
B)leaving economic decisions to the free market.
C)laissez faire.
D)the elimination of private property.

Answer 1

the use of taxes and subsidies to control trade.

Question 2

The Southern Colonies' exports went primarily to

A)the United Kingdom.
B)continental Europe.
C)the West Indies.
D)Africa.

Answer 2

the United Kingdom.

Question 3

A nation practicing mercantilism aims to

A)keep the government out of the economy.
B)establish an excess of exports over imports.
C)balance imports with exports.
D)replace gold and silver with paper money.
E)reduce the size of the military sector.

Answer 3

establish an excess of exports over imports.

Question 4

During the English civil war in the 1640s,the _____ made great inroads into the carrying trade.

A)Italians
B)Dutch
C)Spanish
D)French

Question 5

During the colonial period,commodities that could only be exported legally to Britain were known as _______.

A)Foxwell goods.
B)tariff goods.
C)scot-free goods.
D)enumerated goods.

Question 6

According to the mercantilists,colonies were supposed to export ________ and import ________ from _______.

A)manufactured products,raw materials,the mother country.
B)raw materials,manufactured products,countries outside the empire.
C)manufactured products,raw materials,countries outside the empire.
D)raw materials,manufactured products,the mother country.

Question 7

The Middle Colonies' exports went primarily to

A)the United Kingdom.
B)continental Europe.
C)the West Indies.
D)Africa.

Question 8

Which of the following most accurately describes what the text says about mercantilists?

A)They tried to build up the military power of their economies.
B)They tried to produce full employment.
C)They confused gold and silver with true wealth.
D)They were merely spokesmen for special interest groups.

Question 9

New England's imports came primarily from

A)the United Kingdom.
B)continental Europe.
C)the West Indies.
D)Africa.

Question 10

Under the British Navigation Acts,enumerated goods were a list of colonial _______.

A)exports showing how dependent the British were on the colonies.
B)imports showing how dependent the colonies were on Britain.
C)exports that had to be shipped through British middlemen.
D)exports that were reserved for the crown.

Question 11

New England's exports went primarily to

A)the United Kingdom.
B)continental Europe.
C)the West Indies.
D)Africa.

Question 12

The Navigation Acts

A)required certain commodities to be traded within the British empire only.
B)provided for the free trade of colonial goods,including tobacco,indigo and sugar.
C)required all colonial trade to be carried on English vessels.
D)were abolished in 1700.
E)both a and c are correct.

Question 13

Problems with the use of commodity money include:

A)quality control.
B)storage difficulties.
C)inconvenience.
D)spoilage.
E)All of the above.

Question 14

Mercantilists wanted a favorable balance of trade,by which they meant

A)exports = imports.
B)exports > imports.
C)exports < imports.
D)To import nothing from the colonies.

Question 15

The aims of mercantilists do not include

A)achieving power and wealth for the state.
B)achieving political and economic unity.
C)keeping artisans in the home country.
D)All of the above were aims of the mercantilists.

Question 16

Mercantilists believed that national military power could be achieved best by _______.

A)confiscating church lands and selling them to private businesses.
B)freeing business from government regulation.
C)having the government supply the infrastructure for the economy,while leaving private enterprise alone in other spheres.
D)strictly regulating economic life.

Question 17

Colonists owned the vast majority of the tonnage shipped between

A)New England and the West Indies.
B)England and the West Indies.
C)The Middle colonies and England.
D)The South and the West Indies.

Question 18

England's mercantilist principals

A)were active from the early 1600s.
B)were active from the early 1700s.
C)were a response to Spanish tariffs.
D)were pursued by Charles II after 1685.

Question 19

In terms of imports to the colonies,______ and ______ were the top two trading partners.

A)the United Kingdom;Africa
B)Southern Europe;the West Indies
C)the West Indies;the United Kingdom
D)the United kingdom;Southern Europe.

Question 20

In terms of exports from the colonies,______ and ______ were the top two trading partners.

A)the United Kingdom;Africa
B)Southern Europe;the West Indies
C)the West Indies;the United Kingdom
D)the United kingdom;Southern Europe.

Question 21

Types of money used by colonists included all of the following except

A)gold and silver coins.
B)bills of exchange.
C)bills of credit.
D)government-issued fiat currency.

Question 22

Which of the following statements correctly characterizes the colonial commodity trade deficit?

A)The Middle colonies had the largest commodity trade deficit.
B)The Southern colonies exported more to Great Britain & Ireland than they imported.
C)The colonies experienced commodity trade deficits not only in their trade with England,but also in trade with Southern Europe and Africa.
D)The colonies had a commodity trade deficit with Great Britain,but a commodity trade surplus once all trades were taken into account.

Question 23

The Currency Act of 1751

A)required English merchants to accept bills of credit at full face value.
B)was passed in response to English merchants' concerns about the fluctuating value of colonial money.
C)established dollar bills as legal tender in the colonies.
D)ended the use of paper money in the colonies.

Question 24

The colonies as a whole had a significant commodity import deficit in their trade with England.The least important source of foreign exchange earnings to offset this trade deficit was

A)insurance charges and merchant commissions.
B)the sale of ships.
C)the sale of colonial shipping services.
D)payment for slaves.

Question 25

What was not a problem with using commodity money in the US colonies prior to 1700?

A)Very few people were willing to accept commodities as payment.
B)Commodity spoilage rates were high.
C)Controlling the quality of payments made with commodities.
D)High storage costs of commodities.

Question 26

What statement most accurately describes the U.S.colonial economy in the 1700s?

A)The Middle Colonies had big trade surpluses from their large shipments of food.
B)The majority of the population lived in the large urban areas along the Atlantic coast.
C)Once indentured servants completed their indentures,they moved to the lower South,where the agricultural productivity was highest.
D)Colonial America was the first region in the world to permanently use paper money.

Question 27

A notable and unique feature of the colonial monetary system was

A)the use of minted silver coins.
B)the circulation of commodities as money.
C)the use of a widely accepted paper currency.
D)the development of checking accounts issued by private commercial banks.

Question 28

The most important source of foreign exchange earnings to offset the colonial deficit with England was

A)insurance charges and merchant commissions.
B)the sale of ships.
C)the sale of colonial shipping services.
D)inflows of sterling from British forces stationed in the colonies.