The Declaratory Act Was Passed on the Same Day the Stamp

question 59

Multiple Choice

The Declaratory Act was passed on the same day the Stamp Act was repealed. The purpose behind this move was to:

• A)clarify that Parliament was yielding to not to the colonists' demands, but to the king's.
• B)raise revenue with new, external duties on the goods that the colonists imported from Britain.
• C)grant the East India Company the monopoly on the sale of tea in North America.
• D)reinforce the tradition of salutary neglect between the Crown and the colonies.
• E)loosen the Crown's control over North American colonies and grant them more independence.

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Definitions:

Allocative Efficiency

A state of the economy in which production represents consumer preferences; every good or service is produced up to the point where the last unit provides a marginal benefit equal to its marginal cost of production.

Productive Efficiency

A situation in which an economy or entity can no longer produce additional amounts of a good without lowering the production level of another product.

Substitute Goods

Products or services that can be used in place of each other, having a positive cross-elasticity of demand.

Productive Efficiency

A situation in which a good or service is produced at the lowest possible cost.