Early American Economy

Which statement best describes the US economy in the 1790s?

• The US economy relied on manufacturing

• The US economy was based on hunting and fishing

• The US economy was based on farming

• The US economy relied on trade with Europe

How did Henry Clay believe his American System would improve the US economy?

• By encouraging Americans to start small family farms

• By helping Americans purchase more foreign goods

• By helping to increase manufacturing

• By helping struggling farmers find new jobs

What did the early US government do to promote capitalism?

• It outlawed the national currency

• It created a common market for goods

• It ended all tariffs on imported goods

• It taxed exporters at a high rate

Why did Henry Clay want the government to fund construction of roads and canals?

• He wanted to defend the United States against foreign armies

• He wanted to encourage American businesses to sell their products overseas

• He wanted to make it easier for American businesses to ship goods across the country

• He wanted to provide high-paying jobs for unemployed farmers

What did the early US government do to promote capitalism?

• It closed the national bank and encouraged citizens to start private banks

• It created a national currency

• It set prices for most common goods

• It set a maximum income limit for all citizens

How did most people in the United States earn a living during the 1790s?

• They worked as sailors

• They worked in factories

• They worked as farmers

• They worked as soldiers

Which statement would most likely have been made by an American factory owner in the early 1800s?

• My workers make everything by hand

• It's getting harder and harder to make money

• I can't find workers because people are leaving the cities

• New machines make running a factory more profitable

Which diagram shows an effect of Henry Clay's American System?

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High tariffs led to:

• higher prices on goods from other countries

• less profits for American manufacturers

• increased sales of American goods overseas

• American farmers raising their prices