SAT Subject US History Practice Question 1012: Answer and Explanation

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Question: 1012

3. The exploration of the New World

A. led to the rise of capitalism.
B. provided the raw materials needed for the New World to further its development.
C. provided markets for goods produced in the Americas.
D. allowed for excess African population to be sent to the New World.
E. ended the economic system known as mercantilism.

Correct Answer: A


The development of markets and trade led to the rise of a market economy known as capitalism. It also led to the beginnings of a modern banking system. Raw materials were provided by the New World for manufacture in the mother countries, and the Americas provided a market for goods produced by the mother countries. The need for African labor developed because of the development of sugar plantations in the West Indies. These Africans, however, did not represent excess population. Mercantilism, the economic system by which the colonies exist for the good of the mother country, developed as a result of exploration.

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