The Compromise of 1850 Admitted One State as a Free

question 16

Multiple Choice

The Compromise of 1850 admitted one state as a free state and one state as a slave state. It was developed after mutual paranoia following

• A) the conquest of Mexico.
• B) New England wanting high tariffs and subsidies for ships.
• C) Congress proposing admitting two slave states in row.
• D) asking settlers to compromise with Native Americans to avoid war.

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Definitions:

Allocative Efficiency

A state of resource allocation where it is not possible to make someone better off without making someone else worse off.

Productive Efficiency

A situation where an economy or firm produces goods at the lowest possible cost, utilizing all its resources efficiently without waste.

Monopolistic Competition

A market framework where multiple companies distribute products that are akin to each other but not copies, thus granting them a degree of power within the market.

Excess Capacity

A situation where a company or economy can produce more goods or services than currently demanded, often leading to inefficiency and lower prices.