In General,in the 19th Century,America

question 49

Multiple Choice

In general,in the 19th century,America

• A) was a low tariff nation because it was believed that free trade brought specialization, efficiency and more rapid economic growth.
• B) was a nation that kept its tariffs at about the same levels as England so as not to give the British an advantage.
• C) was a high tariff nation which believed, from the days of Alexander Hamilton, that America's industry needed protection from the more industrially advanced England.
• D) had a moderate level of tariffs, compared with England, whose main purpose was to provide the federal government with revenues.

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Definitions:

Marginal Cost (MC) Curves

Graphs showing the cost of producing one additional unit of a good, illustrating how the cost varies with the level of output.

Diminishing Returns

A rule in economics that holds that after reaching a certain level, further investments in a specific sector will not yield higher returns if all other conditions stay the same.

Law of Demand

The economic principle stating that as the price of a good increases, demand for that good will decrease, and vice versa.

Marginal Cost (MC) Curve

A graphical representation showing how the cost to produce one additional unit of output changes as production volume increases.