Final answer:
The Balkans were known as the 'powder keg of Europe' before World War I due to political tensions, territorial conflicts, and historic grievances, leading to the outbreak of the war.
Explanation:
The area known as the 'powder keg of Europe' before World War I was the Balkans.
Political tensions, territorial conflicts, and historic grievances in the Balkans, along with the existence of disputed territories, contributed to the volatile situation.
The Balkan Wars and diplomatic strains in the region were precursors to the outbreak of World War I, involving alliances such as Germany backing Austria-Hungary, and Serbia being supported by Russia, France, and Great Britain.
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