Why Did Many European Countries Abandon Free-Trade Policies in the Late

question 54

Multiple Choice

Why did many European countries abandon free-trade policies in the late nineteenth century?

• A) As socialist and communist governments came to power across Europe, they rejected all liberal and capitalist economic ideas, which centered around free trade.
• B) In an era of increasing national competition, governments saw free trade as a hindrance to the growth of nationalist sentiment among their citizens.
• C) Free trade caused huge trade deficits that slowed job growth and increased social unrest, so governments had broad popular support to tax imports and prevent outside competition.
• D) Amid the rush to extract resources from their new overseas territories, European governments and economists saw free-trade policies within Europe as obsolete.

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Definitions:

Lemon Test

A three-pronged criterion used by courts to decide if a law violates the Establishment Clause of the First Amendment.

Government Involvement

The extent to which a government participates in or influences various aspects of society or the economy.

Rational Basis Review

A standard of review used by courts to evaluate the constitutionality of a law or government action, requiring that the law be rationally related to a legitimate governmental interest.

Establishment Clause

A provision of the First Amendment to the U.S. Constitution that prohibits the government from establishing an official religion, endorsing all religions, or favoring one religion over others.