Why Did New Englanders Have Only a Quarter of the Wealth

question 43

Multiple Choice

Why did New Englanders have only a quarter of the wealth the free colonists in the South had in 1770?

• A) Farms did not produce huge surpluses of cash crops.
• B) The New England growing season was too short.
• C) The craggy,rocky soil could not support cash crops.
• D) A lack of rainfall kept farm produce from growing.

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Definitions:

Economic Profits

The surplus left after total costs (including both explicit and implicit costs) are subtracted from total revenues.

Short-Run Marginal Costs

Costs associated with producing one more unit of a good or service in the short term, where some inputs are fixed.

Market Price

The current price at which an asset or service can be bought or sold in the open market.

Profit-Maximizing Firm

A business entity whose primary goal is to achieve the highest possible profits through their operations and investment strategies.