GED Social Studies TestU.S. HistoryEasy
A historian is examining the economic policies of the United States in the late 18th century. Which of the following best describes the primary economic challenge faced by the newly formed United States under the Articles of Confederation?
- AWidespread labor shortages due to westward migration.
- BThe inability of the national government to levy taxes or regulate interstate commerce.
- CExcessive tariffs imposed by European trading partners.
- DThe lack of available agricultural land for expansion.
Show answer & explanationAnswer & explanation
Correct answer: B. The inability of the national government to levy taxes or regulate interstate commerce.
The Articles of Confederation created a weak central government that lacked the power to effectively manage the national economy. This inability to tax or regulate trade led to significant financial instability and disputes among states.
Why the other options are wrong
- A. Labor shortages were not a widespread, primary economic challenge under the Articles; the focus was on governmental power.
- C. Though European tariffs existed, the internal economic weaknesses due to the Articles were a more significant and direct challenge.
- D. While land expansion was a factor, it was not the primary economic challenge related to the Articles of Confederation's structure.
Weaknesses of the Articles of Confederation
The Articles of Confederation established a weak central government with limited powers, leading to significant economic and political instability in the early United States.
- No power to tax
- No power to regulate interstate commerce
- No national currency
- Difficult to amend
Memory trick: Articles' weak foundation, a nation's frustration.