GED Social Studies TestU.S. HistoryMedium
A student is researching the immediate aftermath of the American Revolution and the challenges faced by the newly independent United States. Which of the following accurately describes a significant economic challenge during the period under the Articles of Confederation?
- AA robust national currency that facilitated interstate trade and international commerce.
- BWidespread economic prosperity due to unrestricted trade with European nations.
- CA strong central government with the power to levy taxes and pay off war debts.
- DInability of the national government to enforce tax collection, leading to massive debt and economic instability.
Show answer & explanationAnswer & explanation
Correct answer: D. Inability of the national government to enforce tax collection, leading to massive debt and economic instability.
Under the Articles of Confederation, the national government lacked the power to directly tax citizens or states, making it impossible to pay off war debts and leading to significant economic instability.
Why the other options are wrong
- A. The Articles of Confederation led to a weak and inconsistent national currency, hindering trade.
- B. The period was characterized by economic depression, not widespread prosperity, due to wartime debt and trade issues.
- C. The Articles deliberately created a weak central government, specifically lacking the power to tax.
Economic Challenges (Articles of Confederation)
Following the American Revolution, the Articles of Confederation created a weak central government unable to levy taxes, regulate trade, or enforce a uniform currency, leading to severe economic instability and debt.
- No power for national government to tax states or citizens.
- Difficulty paying off Revolutionary War debts.
- Lack of a uniform national currency and interstate trade disputes.
Memory trick: Articles were 'Artless' in handling finances: no tax, no money, no stability.