U4L17 Shaping America's Economy

The type of economy in which people decide what to buy and sell is called a

• constitutional economy.

• free market economy.

• mercantile economy.

• specialized economy.

A person who makes a good is called a

• consumer.

• demander.

• producer.

• supplier.

In a free market, prices rise when

• supply is higher than demand.

• demand is higher than supply.

• demand and supply are the same.

• there is no demand or supply.

Under the Articles of Confederation, the government had

• a mercantile economy.

• too much money to spend.

• little power over the economy.

• strict laws that affected the economy.

What role did Thomas Jefferson believe the government should have in the economy?

• Create a national bank.

• Tax citizens on purchases.

• Have a small role in the economy.

• All of the above.

What was Alexander Hamilton's role in the U.S. economy?

• He had no role in the economy.

• He oversaw the economy.

• He initiated gold trade with other countries.

• All of the above

What are the responsibilities of the Department of Treasury?

• borrowing money

• collecting taxes

• creating currency

• all of the above

How did the Constitution affect state economies?

• They could collect interest from their citizens.

• They could print their own money called continentals.

• They could easily trade with one type of money.

• They chose how much money to give to the government.

What was the impact of specialization on states?

• States could produce everything they needed.

• States could tax goods from other places.

• States could print their own money.

• States relied on each other for desired goods.

Under the Constitution, the government can

• choose what people can buy.

• determine how much things cost.

• place tariffs on international trade.

• decide what a state's specialization is.