What Effect Did the Union Naval Blockade of Southern Ports

question 67

Multiple Choice

What effect did the Union naval blockade of southern ports have on the Confederacy?

• A) Not much, since commerce continued mostly unmolested.
• B) It quickly choked off southern commercial activity.
• C) It inspired dramatic southern economic growth since the South was forced to become self-sufficient.
• D) Food prices declined as the economy slowed.
• E) It prompted Britain to offer diplomatic recognition to the Confederacy.

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Definitions:

Economic Resources

Assets or inputs that contribute to the production of economic goods, including land, labor, capital, and entrepreneurship.

Economic Profits

Profits calculated by subtracting both explicit and implicit costs from total revenue, capturing the true economic value created.

Opportunity Costs

A concept in economics that describes the potential benefits that an individual, investor, or business misses out on when choosing one alternative over another.

ATC

Average Total Cost is the sum of all production costs divided by the quantity of output produced.