AP World History : Economic History

Study concepts, example questions & explanations for AP World History

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Example Questions

Example Question #1 : Trade, Commerce, And Market Competition 1450 To 1750

Timbuktu was once of the wealthiest cities in __________.

Possible Answers:

South Africa

South America

Central America

West Africa

the Middle East

Correct answer:

West Africa

Explanation:

Timbuktu is located in the modern state of Mali, in West Africa. For several centuries during the Medieval period Timbuktu was one of the largest and wealthiest cities in the world. It was an important city in the empires of Songhai and Mali. Much of Timbuktu’s wealth was derived from its status as a trading city - gold, ivory, and salt were all traded in large quantities.

Example Question #1 : Trade, Commerce, And Market Competition 1450 To 1750

Which of these crops or minerals was most important to the profitability of Portuguese colonies in Brazil during the early years of European colonialism?

Possible Answers:

Iron

Sugar

Cotton

Silver

Tobacco

Correct answer:

Sugar

Explanation:

The vast majority of the profitability of Portuguese colonies in Brazil was initially derived from massive sugar plantations. Much later, in the nineteenth century, Brazil would derive much of its wealth from rubber plantations.

Example Question #2 : Trade, Commerce, And Market Competition 1450 To 1750

The Hanseatic League operated primarily in ________________.

Possible Answers:

North Africa

Northern Europe

The Middle East

Eastern Europe

Southern Europe

Correct answer:

Northern Europe

Explanation:

The Hanseatic League was a confederation of guilds and market towns in Northern Europe during the early modern period (1358-1800). It controlled much of the trade in the Baltic Sea and maintained an army for the mutual protection of towns and cities in the league. The primary goal of the Hanseatic League was to protect and encourage trade in Northern Europe.

Example Question #31 : Economic History

Which of these European countries was the first to arrive in Japan and begin trading with the local population?

Possible Answers:

England

France

Spain

Portugal

The Netherlands

Correct answer:

Portugal

Explanation:

The first contact between European civilization and Japan occurred in 1543. Soon after Portuguese traders and merchants in East Asia arrived in Japan and began trading with the local population. The Portuguese monopolized trade with East Asia in the early years of European exploration and colonialism, but were soon joined by the Dutch, the Spanish, the English, and the French. Trading between Japan and Portugal continued for another half-century, until the Tokugawa Period of isolationism began in Japan.

Example Question #31 : Trade, Commerce, And Market Competition

Which of these best describes the Hanseatic League?

Possible Answers:

An alliance of Catholic nations during the Catholic Counter Reformation

A confederation of towns and cities on the Dalmatian Coast during the invasion of Southern Europe by the Ottoman Empire

An alliance of nations with constitutional monarchies, against those still governed by absolutism

An alliance of anti-Catholic nations during the Protestant Reformation

A loose confederation of guilds and market towns in northern Europe

Correct answer:

A loose confederation of guilds and market towns in northern Europe

Explanation:

The Hanseatic League was a loose confederation of guilds and market towns in northern Europe. It was first established in the fourteenth century and continued to be influential until the early nineteenth century. The Hanseatic League was created to protect the economic interests and sovereignty of cities and towns in northern Europe.

Example Question #11 : Trade, Commerce, And Market Competition 1450 To 1750

What was the primary advantage afforded by joint-stock companies?

Possible Answers:

They allowed individuals to make money independent of the monarchy

None of these were advantages afforded by joint-stock companies

All of these were advantages afforded by joint-stock companies

They allowed for the pooling of investment and the sharing of risk

They sanctioned the use of slave labor

Correct answer:

They allowed for the pooling of investment and the sharing of risk

Explanation:

Joint-stock companies first emerged in Europe during the medieval period and became more common during the sixteenth century and the first wave of European exploration and colonialism. Joint-stock companies were created so that investors could pool their resources and negate personal risk. The Muscovy Company in London and the English East India Company are two early examples of joint-stock companies that were created to facilitate and monopolize trade.

Example Question #32 : Economic History

_____________ traders controlled maritime trade in the Indian Ocean for several centuries before the emergence of the _____________ as the dominant traders in the fifteenth and sixteenth centuries.

Possible Answers:

Mongol . . . Dutch

Arab . . . Portuguese

Mongol . . . Portuguese

Mongol . . . English

Arab . . . English

Correct answer:

Arab . . . Portuguese

Explanation:

Almost all of the trade in the Indian Ocean was dominated by Arab traders in the centuries leading up to the era of European exploration. In the fifteenth and sixteenth centuries, with the invention of the caravel and the establishment of Portuguese trading outposts throughout the Indian Ocean, the Portuguese began to take over maritime trade in the Indian Ocean.

Example Question #12 : Trade, Commerce, And Market Competition 1450 To 1750

The Spanish conquest of Manila was essential in facilitating the trade of __________ between the Americas and __________.

Possible Answers:

silk, Europe

gold, India

silver, China

spices, Europe

porcelain, Europe

Correct answer:

silver, China

Explanation:

The Spanish conquest of Manila (in the Philippines) in 1571 was instrumental in facilitating the trade of silver between Spanish America and China. Silver, during this time period, was extremely valuable and in extremely high demand in Chinese society and most of the world’s supply of silver was coming from immensely profitable silver mines in Spanish owned South America.

Example Question #13 : Trade, Commerce, And Market Competition 1450 To 1750

What is considered the first historical investment bubble?

Possible Answers:

the Great Depression 

South Sea Bubble

the Dot-Com Bubble

Tulip Mania 

New York Realestate Bubble 

Correct answer:

Tulip Mania 

Explanation:

Tulip Mania, which occurred in The Netherlands during the Dutch Golden Age from 1619-1622. It resulted in widespread speculation and over-investment in tulip bulbs throughout The Netherlands before the collapse of prices in 1622. At the peak of this phenomenon a single tulip traded at ten-times the average yearly salary of a skilled craftsman. 

Example Question #1 : Trade, Commerce, And Market Competition 1750 To 1900

What field of study is Adam Smith credited with creating?

Possible Answers:

Economics

Anthropology 

Sociology

Psychology 

Correct answer:

Economics

Explanation:

Adam Smith was a prominent academic in the 1700's. He is considered to be the father of the field of economics. He was a prolific writer and theorist on the subject of wealth and how nations economic policies affect each other.

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