Why Did the War That Began Between France and Great

question 54

Multiple Choice

Why did the war that began between France and Great Britain in 1793 pose a dilemma for the United States?

• A) Each belligerent expected the active support of the United States and threatened to declare war if such support was not forthcoming.
• B) The United States was ideologically bound to France, but it was economically bound to Great Britain.
• C) The Senate voted to honor the 1778 treaty with France, but the House voted in favor of a declaration of neutrality.
• D) Because the United States had a mutual defense pact with both countries, it had to choose which agreement to honor.

Understand the concept of scarcity and its significance in economics.

Recognize the different types of resources and their roles in production.

Distinguish between goods and services.

Identify the fundamental problem of economics as the need to make choices due to scarce resources.

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Definitions:

Private Cost

The expenses that a company or an individual incurs as a result of its economic activity, excluding any external costs.

Private Value

The value of a good or service to a particular buyer or group of buyers, which may differ from its market price or the value to other buyers.

Deadweight Losses

Economic inefficiencies that occur when supply and demand are not in equilibrium, usually due to government intervention like taxes or subsidies.

Tax On Gasoline

A government-imposed charge on the sale of gasoline, typically used to fund transportation infrastructure or environmental projects.