Why is the Northwest Ordinance of 1787 considered a significant document in United States history?

Introduction / Context:
The Northwest Ordinance of 1787 is one of the foundational documents in early United States history. Passed under the Articles of Confederation, it established rules for governing the Northwest Territory and set a model for how new territories would become states. This question checks your understanding of its main significance for territorial expansion and state admission, which is a common theme in competitive exams and world history courses.

Given Data / Assumptions:

• The ordinance was adopted in 1787 by the Confederation Congress.
• It applied to the Northwest Territory north of the Ohio River.
• It dealt with territorial governance, rights, and the process of becoming a state.
• Only one option correctly describes its core historical importance.

Concept / Approach:
The key concept is that the Northwest Ordinance created a framework for westward expansion that respected both territorial organization and eventual equality of new states with the original thirteen. It outlined how territories would be governed, when they could apply for statehood, and guaranteed certain civil rights. To find the correct option, focus on provisions about territorial growth and admission of new states, rather than exaggerations or unrelated claims about universal suffrage or taxes.

Step-by-Step Solution:
Step 1: Recall that the ordinance created the Northwest Territory and provided a government structure for it. Step 2: Note that it specified population thresholds, such as sixty thousand inhabitants, for a territory to apply for full statehood. Step 3: Recognize that it set up a process for converting frontier territories into new states with equal status to existing states. Step 4: Examine option b, which states that the ordinance included provisions for territorial growth and the admission of new states. Step 5: Compare this with option a, which incorrectly claims free land without conditions, and option c, which incorrectly claims universal suffrage long before such rights existed. Step 6: See that option d is misleading because the ordinance did not permanently balance free and slave states, and option e is wrong because it did not abolish taxation. Step 7: Conclude that option b matches what you know from standard history summaries.

Verification / Alternative check:
History references explain that the ordinance banned slavery in the Northwest Territory, protected certain civil liberties, and outlined a path from territory to state. While those aspects are important, exam questions often emphasize the orderly admission of new states as its main significance. This fits option b directly and is consistent with what you will find in textbooks and examination guides.

Why Other Options Are Wrong:
Option a exaggerates by suggesting unconditional free land, which is not the core of the ordinance. Option c is incorrect because universal suffrage regardless of race or gender did not exist in 1787. Option d is wrong because later compromises, not this ordinance, dealt with the free and slave state balance. Option e is simply false; taxation remained a normal part of governance.

Common Pitfalls:
Students sometimes confuse the Northwest Ordinance with later laws such as the Homestead Act or with constitutional amendments on voting rights. It is also easy to focus only on the slavery ban and overlook the larger structural importance of the ordinance as a blueprint for expansion. Always associate it with territorial governance and the admission of new states to avoid these traps.

Final Answer:
It included provisions for territorial growth and the orderly admission of new states to the Union.