Advanced Placement US History (AP US History) Practice Exam

What economic theory suggests that colonies exist primarily for the benefit of the mother country?

1. Capitalism

2. Mercantilism

3. Feudalism

4. Socialism

The correct answer is: Mercantilism

The economic theory that suggests colonies exist primarily for the benefit of the mother country is mercantilism. This system was prominent from the 16th to the 18th centuries and revolved around the idea that a country’s wealth and power were best served by increasing exports and collecting precious metals like gold and silver. Under mercantilism, colonies were regarded as sources of raw materials and markets for the mother country’s manufactured goods. It emphasized the importance of a favorable balance of trade, where exports exceed imports to generate wealth for the colonizing nation. In the context of colonial America, this meant that the British Empire established and maintained colonies to supply resources such as tobacco, sugar, and cotton that could not be readily produced in Britain. Thus, the colonies were integral to the economic success of the mother country, reinforcing the belief that their primary function was to serve British interests. Other economic theories presented, such as capitalism, feudalism, and socialism, do not specifically relate to the purpose of colonies in the same way that mercantilism does. Capitalism focuses on private ownership and free markets; feudalism relates to the medieval social structure and land ownership; and socialism advocates for social ownership and egalitarianism—none of which prioritize the benefit