Question #1: During the Civil War the North and the South took on a different method of financing the war (chapter 14). Answer the following: What role did the declining consumption of Southern cotton by the British have on the Southern method of financing the war? Why didn't the South just tax residents more like the North did? What impact did higher inflation in the South have on its citizens? Question #2: In the journey of the United States from a developing to a developed economy, railroads undoubtedly played a role. Joseph Schumpeter argued that the railroads were critical to this transition (chapter 16). To what extent is this true and to what extent were railroads not the essential or critical feature to becoming a developed economy (in other words, can you have a developed economy without a railroad)? Question #3: After the Civil War there was a dramatic expansion in businesses via horizontal and vertical mergers (chapter 17). Why was it sort of natural or inevitable that there would have been these mergers in the closing decades of the 1800s? What were the negative and positive consequences to these mergers for consumers? What would be better for businesses -- having a trust or having a merger?

Please leave the reference site