C. The colony’s conflict with American Indians contributed to tensions between its own social classes.
Bacon's Rebellion was a rebellion led by Nathaniel Bacon of western farmers against the coastal elite in charge of the colonial government.
Western farmers were requesting aid from the Virginia colonial government in dealing with issues with Indians on the frontier. The government was full of wealthy, government officials who refused to help the farmers on the frontier who had less money and influence than the coastal elite. This rebellion was sparked by trouble with Indians but in the end revealed the problems by the social classes in the colony.
one advantage to this philosophy is that businesses faced fewer government rules and regulations. this allowes businesses to do many things. often rules and regulations add tothe costs that business faces. sometimes, rules and regulations make it harder to do business activities. when businesses have fewer rules and regulations they are generally willing to take more risks and to invest in the economy. with fewer rules and regulations, businesses have a big incentive to try to maximize profits.
a disadvantage of this policy is that businesses may engage in risky behaviors that could lead to future economic problems. in the 1920s, there were few rules and regulations on banks and on the investiment industry. to much money was being loaned to individuals and people could buy stocks woth only a small down payment. banks were also free to invest in the stock market. when the stock market crashed, many people and banks were financially ruined.
