U.S. Citizenship Civics TestColonial Period and IndependenceHard
During the period leading up to the American Revolution, what was the primary economic policy imposed by Great Britain that restricted colonial trade and manufacturing?
- ASocialism
- BMercantilism
- CFree Trade Agreement
- DLaissez-faire Capitalism
Show answer & explanationAnswer & explanation
Correct answer: B. Mercantilism
Mercantilism was the dominant economic policy of European powers, including Great Britain, during the colonial era. It aimed to maximize exports and accumulate wealth (gold and silver) by controlling colonial trade and resources for the benefit of the mother country.
Why the other options are wrong
- A. Socialism is an economic system characterized by social ownership of the means of production, not relevant to 18th-century British colonial policy.
- C. Free Trade Agreement promotes unrestricted trade between countries, which was contrary to British policy.
- D. Laissez-faire Capitalism advocates for minimal government intervention in the economy, which was not practiced by Britain towards its colonies.
Mercantilism
An economic theory and practice, prevalent in Europe from the 16th to the 18th centuries, that promoted governmental regulation of a nation's economy for the purpose of augmenting state power at the expense of rival national powers.
- Emphasized maximizing exports and minimizing imports.
- Colonies were seen as sources of raw materials and markets for finished goods.
- Led to trade restrictions like the Navigation Acts, benefiting Great Britain.
Memory trick: Merchants control the market for the motherland's money.