GED Social Studies TestU.S. HistoryEasy
A student is researching the economic policies of the United States in the late 18th century, specifically after the Revolutionary War but before the ratification of the Constitution. Which of the following was a significant economic challenge faced by the newly independent states under the Articles of Confederation?
- AExcessive federal regulation of agricultural markets.
- BA robust federal tax system that stifled individual enterprise.
- CA strong national currency leading to inflation.
- DInterstate trade disputes and tariffs between states.
Show answer & explanationAnswer & explanation
Correct answer: D. Interstate trade disputes and tariffs between states.
Under the Articles of Confederation, the central government lacked the power to regulate interstate commerce. This led to individual states imposing tariffs on goods from other states, creating economic friction and hindering national economic growth.
Why the other options are wrong
- A. The federal government under the Articles had very limited power, especially regarding economic regulation.
- B. The Articles of Confederation lacked the power to tax, which was a major weakness, not a robust system.
- C. There was no strong national currency; states printed their own, leading to economic instability and devaluation.
Economic Challenges under Articles of Confederation
The newly formed United States faced severe economic issues due to the weak central government established by the Articles of Confederation.
- No power to tax, leading to national debt and inability to pay soldiers.
- No uniform currency; states printed their own, causing inflation.
- Inability to regulate interstate trade, leading to disputes and tariffs.
Memory trick: Articles were 'Artless' at governing, especially economically.