Question 1

Indentured servants were white colonists who sold themselves into slavery when their farms in America failed.

Accepted Answer

Indentured servants were not considered slaves, but rather they were bound to work for a specific period of time (usually 4-7 years) to pay off the cost of their passage to the colonies. They were mostly English, Scottish, and Irish, and their decision to become indentured servants was often based on the hope of improving their economic prospects, rather than due to their farms failing in America.

Question 2

Taxes impose a cost on letting land remain idle.

Accepted Answer

In many places, taxes are levied on landowners who allow their land to remain undeveloped. This is done to encourage better land use and to prevent land from being held unused or underutilized for long periods of time. The cost of these taxes can be significant, and can act as a deterrent to land hoarding or neglect. Therefore, taxes can impose a cost on letting land remain idle.

Question 3

A bill of exchange necessitated the use of coin and bullion and thus restricted the growth of commercial trade.

Accepted Answer

A bill of exchange is a written order, addressed by one person to another, directing the payment of a sum of money. It was a widely used instrument in commercial trade during the medieval and early modern periods, allowing merchants to avoid the risk and expense of transporting large quantities of coin and bullion between different regions. Instead, bills of exchange could be traded and used as a form of payment, making commerce more efficient and reducing the need for physical currency. Therefore, bills of exchange actually facilitated the growth of commercial trade rather than restricting it.

Question 4

Although most slaves came to the colonies before 1776, the majority of other types of labor came to North America voluntarily.

Accepted Answer

While there were indentured servants and other types of laborers who came to the colonies voluntarily, the statement specifies "the majority of other types of labor" which is true.

Question 5

European agricultural practices perfectly served the colonists farming in the New World.

Accepted Answer

European agricultural practices were not always suited to the New World environment and climate. The colonists had to adapt and learn new techniques from Native Americans and local flora and fauna to successfully farm in the new land.

Question 6

Alan Kulikoff (2000)maintains that the opportunity to own land privately provided many individuals with incentive to relocate to colonial America and accept the associated risks.

Accepted Answer

Alan Kulikoff argues that the opportunity to own land privately served as a significant motivation for many people to move to colonial America, even though they faced various dangers and challenges.

Question 7

Public funding is not a part of colonial history.

Accepted Answer

Public funding was a part of colonial history, as it played a significant role in financing colonial expeditions, establishing colonies, building infrastructure, and funding the operations of colonial administrations.

Question 8

After 1616, Virginia shifted more and more scarce resources out of food production and into tobacco production. Hence, the economic cost of tobacco production included the sacrifice of food production.

Accepted Answer

This statement is true. Virginia's shift towards tobacco production resulted in a decrease in food production, as resources such as labor and land were devoted to growing tobacco instead. This had an economic cost as the colony was then more reliant on importing food from other colonies or countries.

Question 9

The American colonies have a rich and deep history in international trade and immigration.

Accepted Answer

The American colonies, especially during the 17th and 18th centuries, had a significant role in international trade and immigration. The colonies' economy heavily depended on trade with Britain, Europe, Africa, and the Caribbean. The colonies also attracted numerous immigrants from various parts of the world, including Europeans, Africans, and Asians. This led to cultural diversity and the development of a unique American identity.

Question 10

The British Crown was the only political, social, cultural and economic influence on the colonization of North America.

Accepted Answer

While the British Crown was an important factor in the colonization of North America, there were also other political, social, cultural, and economic influences at play, including the Spanish, French, and Dutch colonial powers, interactions with Native American societies, religious motivations, and economic opportunities from resources such as fur, tobacco, and timber.

Question 11

Mercantilism followed feudalism. Unlike feudalism, mercantilism did not support any form of a strong central government or system of nation states.

Accepted Answer

Mercantilism did support a strong central government and focused on the economic and military power of the nation state.

Question 12

Both indentured servants and slaves had rights in courts of law.

Accepted Answer

Indentured servants, who worked under a contract for a certain period in exchange for passage to America, had some legal rights and could take their masters to court, primarily in cases of mistreatment or breach of contract. Slaves, on the other hand, were considered property and had virtually no legal rights in court.

Question 13

Secure rights to land provided colonists with incentive to use the land productively,conserve it and invest in it.

Accepted Answer

When colonists are given secure rights to land, they become more invested in it and are likely to use it productively, conserve it, and even make long-term investments in it, as they have an assurance that their rights and ownership of the land will be protected.

Question 14

According to Douglass North (1981,1993), to knowledgeably understand our present economy or to strategically speculate about its future,it is important to "explain the structure and performance of economies through time."

Accepted Answer

Douglass North emphasized the importance of understanding the historical context and evolution of economies in order to make informed assessments about their current state and future prospects.

Question 15

The growth of cities and population usually accompanies growth in commercial activity and vice versa.

Accepted Answer

As the population of a city grows, there is usually an increase in demand for goods and services, which in turn leads to the growth of commercial activity such as businesses, shops, and services. Similarly, growth in commercial activity can also attract more people to a city, leading to an increase in its population. Therefore, there is a strong correlation between the growth of cities and population and the growth of commercial activity.

Question 16

Today's corporate structures have very little in common with the joint-stock companies of colonial America.

Accepted Answer

Today's corporate structures, while more complex, still share fundamental principles with the joint-stock companies of colonial America, such as the concepts of shared ownership, investment for profit, and limited liability for investors.

Question 17

Adam Smith (1776)claimed that less governmental regulation,not more,would provide incentives for individuals to allocate resources efficiently,specialize and trade.Specialization and trade would generate wealth and result in economic growth and development.

Accepted Answer

This statement accurately reflects Adam Smith's beliefs as outlined in his book "The Wealth of Nations". Smith believed that individuals acting in their own self-interest, without government interference, would lead to a beneficial outcome for society as a whole. This concept is commonly referred to as laissez-faire economics.

Question 18

Secured and enforced individual property rights provide individuals with incentive to allocate resources efficiently and effectively,advance technologically,take on strategic risks and trade domestically and internationally.

Accepted Answer

Secured and enforced individual property rights give individuals the assurance that they can enjoy the benefits of their investments and efforts. This provides an incentive for individuals to allocate resources efficiently and effectively, as well as to innovate and take strategic risks. It also allows individuals to trade domestically and internationally with confidence, knowing that their property rights are protected. Therefore, this statement is true.

Question 19

According to the quantity theory of money,an increase in the stock of precious metals or bills of exchange usually results in increased trade and rising prices.Both economic events helped merchant capitalists and the king.

Accepted Answer

The quantity theory of money suggests that an increase in the money supply, which could be in the form of precious metals (like gold and silver) or bills of exchange, leads to an increase in overall prices. This is because more money in circulation tends to increase demand for goods and services, leading to higher prices. Merchant capitalists benefit from increased trade and higher prices for goods, while kings or governments benefit from increased revenue from taxes and duties on this enhanced trade and economic activity.

Question 20

The children of indentured females were not the property of the master or owner of the indentured servant.This was an important difference between indentured servants and slaves.

Accepted Answer

This statement is true. While indentured servants were bound to work for a set period of time, their children were not considered property of the master or owner, and were free to live their own lives once their indenture period was over. This is in contrast to slaves, whose children were also considered property of their owners.

Quiz 1: Overseas Empire