Why did the South's dependence on a single cash crop after the Civil War hurt the region's economy?

• A. It made the economy vulnerable to fluctuations in the price and demand of that crop.
• B. It reduced the region's agricultural output and population growth.
• C. It encouraged rapid industrialization and economic diversification.
• D. It led to an increase in foreign investment and technological innovation.

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of economic dependence on a single cash crop. This means the region's economy relies heavily on one agricultural product for income and trade.
2. Step 2: Recognize that such dependence makes the economy vulnerable because if the price or demand for that crop falls, the entire economy suffers due to lack of diversification.
3. Step 3: Analyze how fluctuations in global markets or weather conditions can cause instability in income for farmers and related businesses in the region.
4. Step 4: Contrast this with economic diversification, where multiple industries or crops reduce risk by spreading economic activity across different sectors.
5. Step 5: Conclude that the South's reliance on one crop limited its economic resilience, making it more susceptible to economic downturns caused by changes in that crop's market.