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Test Bank for American Economic History Eighth Edition Tawni Ferrarini Jonathan Hughes Louis Cain 1 / 4
PART 1
THE
COLONIAL PERIOD,
1607–1783 2 / 4
©2011 Pearson Education, Inc. Publishing as Addison Wesley Chapter 1 Overseas Empire True/False Read each statement carefully. Identify whether it is true or false using the economic historian’s way of thinking.
1.European agricultural practices perfectly se rved the colonists farming in the New World.
Answer: False
2.Although most slaves came to the colonies before 1776, the majority of other types of labor came to North America voluntarily.A
nswer: True
3.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.
Answer: True
4.Indentured servants were white colonists who sold themselves into slavery wh en their farms in Am erica failed.
Answer: False
5.The British Crown was the only political, social, cultural and economic influence on the colonization of North America.A
nswer: False
- Taxes impose a cost on letting land remain idle.
Answer: True
7.Mercantilism followed feudalism. Unlike feudalis m, mercantilism did not support any form of a strong central government or system of nation states.
Answer: False 3 / 4
- Hughes/Cain American Economic History, Eighth Edition
- Adam Smith (1776) claimed that less governmental regulation, not more, would provide incentives
©2011 Pearson Education, Inc. Publishing as Addison Wesley
for individuals to allocate resources efficiently, specialize and trade. Specialization and trade would generate wealth and result in economic growth and development.
Answer: True
- 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.
Answer: True
- 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.
Answer: True
- 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.”
Answer: True
- Secure rights to land provided colonists with incentive to use the land productively, conserve it and
invest in it.
Answer: True
- 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.
Answer: True
- The American colonies have a rich and deep history in international trade and immigration.
Answer: True
- The growth of cities and population usually accompanies growth in commercial activity and vice
versa.
Answer: True
- A bill of exchange necessitated the use of coin and bullion and thus restricted the growth of
commercial trade.
Answer: False
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