Middle Ages Regents Practice

What significant economic change occurred during the Commercial Revolution in Europe?

1. Manorialism was re-established

2. A capitalist economy was developed

3. The Church gained overwhelming control

4. New monarchies were founded

The correct answer is: A capitalist economy was developed

During the Commercial Revolution, the emergence of a capitalist economy marked a significant shift in Europe's economic landscape. This period, roughly spanning from the 11th to the 18th centuries, saw the growth of trade and commerce as cities expanded and markets flourished. A capitalist economy is characterized by the private ownership of the means of production and the free market system, where goods and services are exchanged for profit. As trade routes expanded, particularly with increased interaction with the East and the New World, there was a rise in merchant class wealth and investment opportunities. The development of banking systems and financial instruments, such as bills of exchange and joint-stock companies, facilitated long-distance trade and encouraged entrepreneurial ventures. This economic transformation laid the groundwork for modern capitalism, fundamentally altering how economies operated and contributed to the decline of feudalism. The other options reflect different historical dynamics but do not capture the essence of the economic transition that defined the Commercial Revolution. Manorialism refers to the agrarian system that characterized the early medieval period, while the overwhelming control of the Church and the founding of new monarchies were important sociopolitical developments but not central to the economic shifts of this era.