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1. It is important to remember that slave labor was not the only labor in the South prior to the Civil War. Slavery existed alongside a free market for labor. If these markets operated without any barriers or frictions, then one would expect free labor and slave labor to be substitutes. Clearly this was not the case. What are the implications of this? What did this mean for sectors that utilized free labor more intensively? What did this mean for the plantation ownersª ability to exploit slave labor? How could this system remain viable, and yet, economically inefficient for the United States as a whole?

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  1.   It is important to remember that slave labor was not the only labor in the South prior to the Civil War.  Slavery existed alongside a free market for labor.  If these markets operated without any barriers or frictions, then one would expect free labor and slave labor to be substitutes.  Clearly this was not the case.  What are the implications of this?  What did this mean for sectors that utilized free labor more intensively?  What did this mean for the plantation owners ability to exploit slave labor?  How could this system remain viable, and yet, economically inefficient for the United States as a whole?


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