Economic Practice and Development - AP European History

  1. Which industrial sector was first transformed during the Industrial Revolution?
    Textile industry. Cotton production mechanization launched industrial manufacturing transformation.
  2. What was the 16th-century economic impact of the influx of New World silver to Europe?
    Price Revolution. American silver caused widespread inflation across European economies.
  3. Which economic system is characterized by private ownership and free markets?
    Capitalism. Private enterprise system driven by profit motive and competition.
  4. What economic strategy was employed in Western Europe for post-war recovery?
    Reconstruction. Rebuilding infrastructure, industries, and institutions after wartime destruction.
  5. Identify the doctrine that advocates for a self-sufficient national economy.
    Autarky. Economic isolation policy minimizing imports and foreign economic dependence.
  6. What term describes the 19th-century shift from agrarian to industrial economies?
    Industrial Revolution. Mechanization and factory systems transformed production and society.
  7. Which economic theory focuses on government intervention to stabilize the economy?
    Keynesian economics. John Maynard Keynes advocated government spending to combat economic downturns.
  8. What term is used for land consolidation in 18th-century England?
    Enclosure Movement. Privatized common lands, increasing agricultural efficiency and rural displacement.
  9. What economic system dominated Europe between the 9th and 15th centuries?
    Feudalism. Land-based hierarchy system with lords, vassals, and agricultural serfs.
  10. What is the economic term for the restriction of imports through tariffs?
    Protectionism. Shields domestic industries from foreign competition through trade barriers.
  11. What term describes 17th-century government-backed monopolies for overseas trade?
    Chartered Companies. Royal charters granted exclusive trading rights in specific regions.
  12. What was the primary economic practice in medieval Europe?
    Feudalism. Land-based hierarchy system with lords, vassals, and agricultural serfs.
  13. What was the economic doctrine of the Soviet Union during the 20th century?
    Communism. Classless society with collective ownership, as implemented by Soviet Union.
  14. Name the 18th-century economist known for 'The Wealth of Nations.'
    Adam Smith. Father of modern economics, advocating free markets and division of labor.
  15. Which 19th-century economist is associated with the theory of comparative advantage?
    David Ricardo. Developed theory that nations should specialize in most efficient production.
  16. What was the primary economic philosophy during the Age of Exploration?
    Mercantilism. Emphasized national wealth through exports and gold accumulation.
  17. What economic change occurred due to the Agricultural Revolution?
    Increased production. Improved farming techniques and crops boosted food supply and population.
  18. What was the primary currency system in Europe before the euro?
    European Currency Unit (ECU). Basket currency preceding the euro, used for European monetary calculations.
  19. Identify the 20th-century economic agreement that created the European Union.
    Maastricht Treaty. 1992 treaty establishing European Union and common currency framework.
  20. What was the primary economic system in Eastern Europe before 1989?
    Communism. State-controlled economies dominated until 1989 revolutions brought democratic capitalism.
  21. Which economic policy involves government ownership of industry?
    Socialism. Collective ownership of production means, contrasting with private capitalism.
  22. Which 18th-century movement emphasized reason and individualism in economic thought?
    The Enlightenment. Promoted rational thinking and individual economic freedom over traditional authority.
  23. Identify the economic theory that emphasizes class struggle and revolution.
    Marxism. Karl Marx's theory predicting capitalism's collapse through worker revolution.
  24. What institution was formed in 1944 to promote international monetary cooperation?
    International Monetary Fund (IMF). Established at Bretton Woods to stabilize global currencies and lending.
  25. Name the economic theory that advocates for minimal state intervention in markets.
    Laissez-faire. French for 'let do,' promoting free market competition without government regulation.
  26. What was the economic impact of the Black Death in 14th-century Europe?
    Labor shortages. Massive population decline increased surviving workers' wages and bargaining power.
  27. Identify the economic plan to rebuild Europe post-World War II.
    Marshall Plan. US aid program providing $13 billion to rebuild war-torn European economies.
  28. What was the economic system in Eastern Europe post-World War II?
    State socialism. Communist governments controlled all economic production and distribution centrally.
  29. Identify the system that transferred goods between Europe, Africa, and the Americas.
    Triangular Trade. Connected three continents through slave, sugar, and manufactured goods exchange.
  30. Which economic crisis began in 1929 and affected the global economy?
    Great Depression. Worldwide economic collapse triggered by Wall Street stock market crash.
  31. Who is the economist known for the concept of 'invisible hand'?
    Adam Smith. Father of modern economics, advocating free markets and division of labor.

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