The Establishment of Colonies in the Americas in the Sixteenth

question 37

Multiple Choice

The establishment of colonies in the Americas in the sixteenth century provided Europeans with which of the following advantages in global trade?

• A) Elaborate cotton and wool textiles manufactured in the Americas were highly prized in Asia.
• B) Europeans could take advantage of the Aztecs' superior shipbuilding techniques.
• C) American manufactures were eagerly received in Africa and Asia.
• D) European products that were not esteemed in Afro-Eurasia could be sold in the Americas.

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Definitions:

Savings

The portion of disposable income not spent on consumption of goods and services, set aside for future use or investment.

Investment

The action of allocating resources, usually money, with the expectation of generating an income or profit.

Price Level

The average of current prices across all goods and services in an economy, indicating the overall cost of living or inflation rate.

Purchasing Power

How much goods or services one unit of currency can procure, defining the currency's value.