1. What is the difference between a subsistence economy and the market economy that developed as a result of nineteenth century transportation innovations? A subsistence economy is a shared economy, so everyone has enough.

In a market economy people can buy, rather than produce, things they may need.

In a subsistence economy, families depend on others to produce the goods they need.

A market economy means that people can sell whatever they can produce.

2. What compromise did Henry Clay achieve in order to resolve the nullification crisis?

Congress lowered the tariff in the southern states in exchange for a reduction in the number of slaves allowed.

President Jackson agreed to withdraw troops from South Carolina which agreed to pay the tariff.

Congress agreed to lower the tariff, but also allowed President Jackson to use the military to enforce it.

Both Andrew Jackson and John C. Calhoun agreed not to run for president in 1836.