Given below are assertion and reason, read the statements and choose the correct option.
Assertion: British capital accumulation in the 18th century was reinvested in industrial development.
Reason: The capital was largely controlled by merchants and industrialists instead of the feudal aristocracy.
Show answer & explanation
Correct answer: D
Explanation
Answer: Both Assertion (A) and Reason (R) are true, and R is the correct explanation of A.
Explanation:
Assertion (A): Britain had accumulated vast wealth through global trade, colonial exploitation, and the slave trade. Crucially, this money wasn't just sat on; it was reinvested into new technologies like steam engines and textile mills.
Reason (R): In many other European countries, wealth was held by the Feudal Aristocracy (land-owning nobles) who spent money on luxury and wars. However, in Britain, the rise of a powerful Middle Class (merchants and early industrialists) meant that the people holding the money were business-minded. They preferred to grow their wealth by investing in production rather than mere consumption.
Because the money was in the hands of "entrepreneurs" rather than "landlords," it flowed directly into the industrial sector, making R the perfect explanation for A.
Key Facts for Exams
Commercial Revolution: The period of European economic expansion, colonialism, and mercantilism which preceded the Industrial Revolution.
Capitalism: The economic system that grew during this era, characterized by private ownership and the reinvestment of profits.
Triangular Trade: A major source of British capital accumulation involving Europe, Africa, and the Americas.
Q: Which 18th-century British legal process forced peasants off the land and into industrial cities?
Answer: The Enclosure Acts/Movement.
Q: In the context of the Industrial Revolution, what does "Capital Accumulation" mean?
Answer: The gathering of objects of value, money, or financial assets to increase wealth through investment.