Econ 1740 Ch 4

Problems with the use of commodity money include:

quality control. storage difficulties. inconvenience. spoilage.

Mercantilism was an economic policy that called for

the use of taxes and subsidies to control trade.

During the colonial period, commodities that could only be exported legally to Britain were known as _______.

Enumerated goods

In 1776, ______________ was the most populated colonial city.

Philadelphia

The Southern Colonies' exports went primarily to

UK

Early forms of colonial money included

Wampum Tobacco Furs and hids Musket balls

During the English civil war in the 1640s, the _____ made great inroads into the carrying trade.

Dutch

Types of money used by colonists included all of the following except

Government issued fiat currency

Bills of exchange and bills of credit typically had a market value that was _________ their face value.

Less than

During the colonial period, the largest cities were typically

Port towns

According to the mercantilists, colonies were supposed to export ________ and import ________ from _______.

Raw materials, manufactured products, the mother country

The aims of mercantilists do include which of the following

achieving power and wealth for the state. achieving political and economic unity. keeping artisans in the home country. establish an excess of exports over imports.

Shuttle routes for colonial trade

lowered labor costs. reduced delays and costly extensions of port times. were more common than triangular trade patterns. allowed captains to negotiate with a small number of familiar trading partners.

The colonies as a whole had a significant commodity trade deficit with England. In order to finance this deficit the colonies relied on all of the following sources of income except

mining of gold and silver that were used to make Colonial coins.

In terms of import and exports from the colonies, ______ and ______ were the top two trading partners.

West indies, UK

____________ were the most common form of specie used in the colonies.

Coins issued by Spanish

In 1768-72, the top ten commodity exports of the thirteen colonies included all of the following (choose all that apply)

Tobacco Bread and flour Fish Horses

During the colonial period, "enumerated goods" included

Tobacco Sugar Indigo Cotton

A notable and unique feature of the colonial monetary system was

Use of widely accepted paper currency

New England's and the Middle Colonies' exports went primarily to

West indies