European History : Commerce; Economics; Market Competition

Study concepts, example questions & explanations for European History

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Example Questions

Example Question #1 : Commerce; Economics; Market Competition

Which one of these nations is a member of the European Union but does not use the Euro as its currency?

Possible Answers:

Germany

France

Italy

The United Kingdom

Greece

Correct answer:

The United Kingdom

Explanation:

The United Kingdom has continued to use the British Pound as its currency, despite being a member of the European Union. The other nations do use the Euro, and are therefore incorrect.

Example Question #2 : Commerce; Economics; Market Competition

Which of the following is counted among the founders of modern economics, and advocated for the concept of the Invisible Hand?

Possible Answers:

Jonathon Swift

Adam Smith

Karl Marx

John Locke

Voltaire

Correct answer:

Adam Smith

Explanation:

Karl Marx most assuredly did not believe in the Invisible Hand, nor did he invent the concept, so he would not be a good choice. Voltaire was not particularly interested in the study of economics, so he would not be a good answer here. John Locke was a philosopher but he did not invent the concept of the Invisible Hand, so he would not be the correct answer. Jonathan Swift was a satirist, but he did not study economics as a discipline, so he would not be the best answer. Lastly, Adam Smith did both of the things in question, so he would be the best answer.

Example Question #3 : Commerce; Economics; Market Competition

An economic system in which the state promotes nationalism by encouraging exports and discouraging imports is called _________________.

Possible Answers:

mercantilism 

state capitalism

socialism

capitalism

mutualism 

Correct answer:

mercantilism 

Explanation:

Mercantilism was the dominant economic system in Europe's colonial powers from the 16th to the 18th century. The government would regulate the nation's economy, particularly its trade relations, to advance the state's interest and weaken its rival nations.

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