Question

QUESTION 9

1. Government inputs, especially the 1825 Erie Canal and subsequent projects like the Chesapeake and Ohio Canal, created an economic advantage for the Northern states because the expense and time of moving freight dropped radically.

   a		False, because any taxation whatsoever destroys economic growth.
   b		False, because the South would never have raised the revenue for any taxpayer-funded improvements, so it's a false comparison.
   c		True, but irrelevant, as agricultural commodities mainly rotted in the field until refrigeration was invented in the 1890s.
   d		True.

Answer 1

The statement that “Government inputs, especially the 1825 Erie Canal and subsequent projects like the Chesapeake and Ohio Canal, created an economic advantage for the Northern states because the expense and time of moving freight dropped radically,” is True.

This is because taxation doesn’t destroy the economy. In fact, they provide revenue to the government through which the government can finance its development and welfare projects. Moreover, taxes also work as a system of income re-distribution for achieving higher equality in an economy. In addition to this, in ancient times refrigeration was done using icehouses etc.