CLEP US History I

Category - Economy

The expansion of the railroads created which of the following shifts in the Northern economy?
  1. The Northern economy overtook the Southern by 1850.
  2. The canal systems became obsolete, creating debt.
  3. The North went from trading with the South to trading with the West.
  4. Skilled labor began moving west, creating vast shortages.
  5. Banks began to be owned exclusively by railroad companies.
Explanation
Answer: C - The dramatic increase in miles of track laid after 1840 shifted the Northern economy from trading with the South to trading with the Midwest. Because Southern crops went overseas, it never developed infrastructure of the other regions. Prior to the Civil War, the South was becoming increasingly economically isolated from the rest of the nation.
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