What economic change did the rise of capitalism bring about in Europe?

The rise of capitalism in Europe led to a significant increase in individual entrepreneurship and the development of a robust market economy. This economic system shifted the focus from feudalistic structures, where land and resources were owned by a small number of nobles, to one where individuals could own property, start businesses, and engage in trade.

Capitalism encouraged competition and innovation, leading to the emergence of new industries and the expansion of trade networks. Individuals were motivated to create and invest in their own enterprises, leading to technological advancements and greater efficiency in production. This not only increased wealth for individuals but also contributed to the overall economic growth of nations. This environment fostered creativity and experimentation, which were crucial for the development of modern economies.

The other options reflect misunderstandings of the transformations associated with capitalism. Rather than reducing trade, capitalism expanded trade on both local and international levels. The development of individual entrepreneurship provided a counterpoint to the centralization of power; while monarchs did gain some power during this time, the rise of merchant classes and financiers often challenged that power. Additionally, urban migration related to capitalism typically resulted in population growth in cities, as people moved for job opportunities, rather than a decrease in population.