Question

When the U.S. Constitution established that the entire nation was a unified or common market, how was the economy affected?
A) Debts from the French and Indian War were cancelled.
B) There were no internal tariffs or taxes on interstate commerce.
C) Provisions were made for sales and income taxes at the federal level.
D) Tariffs, taxes, and currencies would all be dealt with at the state level.

Answer 1

The correct answer is B. With a national economy there are no tariffs or other regulations usually applied to international trade.

Answer 2

The second alternative is correct (B).

When the American Constitution ruled that the territory of the United States was a federation, the tax or tariff for the commercialization of goods and services between states ceased to make any logical sense, since all states together formed one nation.