What Unintended Consequence Did the Embargo Act of 1807 Produce

question 43

Multiple Choice

What unintended consequence did the Embargo Act of 1807 produce?

• A) It forced American ship builders to develop improved technology.
• B) It increased American trade with South America.
• C) It led to the development of a railroad connecting the cities on the eastern seaboard.
• D) It stimulated merchants to invest their capital into domestic factories.
• E) It persuaded the British to end their blockade.

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Definitions:

Capital Expenditure Appraisal

The process of evaluating and analyzing proposed investments in capital assets, focusing on their potential to generate future benefits and contribute to the firm's objectives.

Net Present Value

The difference between the present value of cash inflows and outflows, used to assess the profitability of an investment or project.

Hurdle Rate

The minimum rate of return on an investment that a company or investor is willing to accept, often used in capital budgeting to evaluate potential investments.

Unrealistic Status Quo

A reference to an impractical or fantasy-based current state of affairs, often used in strategic planning or decision-making to denote assumptions that do not hold.