Which characterization best describes the differences between Jefferson and Hamilton regarding federal power and economic policy?

• A. Jefferson favored strong central government and an industrial economy; Hamilton favored limited central government and an agrarian economy.
• B. Jefferson favored limited central government and an agrarian republic; Hamilton favored a strong central government and an industrial, commerce-centered economy.
• C. Both supported a weak central government with minimal financial policy.
• D. Jefferson supported a centralized army to enforce policy.

Answer: (B)

The main idea being tested is how early American leaders differed in their view of federal power and the direction of the economy. Jefferson argued for a limited central government and an agrarian republic, with power kept closest to the states and to ordinary farmers. He favored a strict reading of the Constitution and resisted a strong national financial system that could concentrate power in Washington. Hamilton, by contrast, pushed for a strong central government to knit the new nation together and to build a modern economy centered on industry and commerce. He supported a national bank, tariffs, and federal assumption of state debts to spur growth and credit, reflecting a broader use of federal power to promote economic development. So the choice that identifies Jefferson as wanting limited federal power and an agrarian economy, and Hamilton as favoring a strong federal government and an industrial, trade-oriented economy, is the best fit.

Other descriptions either flip the roles, suggest both wanted a weak central government, or attribute a policy stance (like a centralized army) that isn’t central to this economic-power contrast, and thus don’t match the historical differences.