Advanced Placement (AP) European History Practice Exam

What claim does the author make about price competition among products?

1. Competition was among products sourced entirely within Europe

2. Competition existed among goods from various international sources

3. Prices were fixed across Europe to stabilize trade

4. Competition did not impact trade routes significantly

The correct answer is: Competition existed among goods from various international sources

The author's claim about price competition among products suggests that competition was driven not just by local goods but also by diverse international sources. This indicates a broader market dynamic where goods from different regions could compete against one another, thus creating a more complex economic landscape. The presence of international competition would have influenced pricing strategies, where businesses had to be mindful of not only local rivals but also products coming in from various countries, encouraging efficiency and innovation. In historical contexts, such as during the age of exploration and increasing globalization, markets expanded beyond local boundaries, making international competition a significant factor. This would have implications for trade practices, market accessibility, and consumer choice, contributing to the evolution of economic systems in Europe. Hence, the competition among items from various international sources reflects a multifaceted trade environment leading to more competitive pricing and a diverse marketplace.