Types of price discrimination practiced by post-bellum railroads included all of the following except:
a. varied rates based on passengers' gender.
b. varied rates based on town of origin.
c. higher rates per mile for short-hauls than for long-hauls.d varied rates based on passengers' occupation .
Question 2In considering the financial history of the transcontinental railroads, the text argues that:
a. there was surprisingly little corruption given the corruption in other walks of life at the time.
b. there was surprisingly little corruption, mostly involving the buying off of federal regulators when rate controls became unreasonable.
c. there was a great deal of corruption, mostly in the form of high fees chargedimmigrants for what was really free federal land.
d. there was a great deal of corruption, mostly because construction companies were run by insiders.
Question 3A common unscrupulous financial practice of railroad promoters (and the basis of the Credit Mobilier scandal) involved
a. federal tax evasion.
b. insider ownership of railroad construction companies.
c. sales of worthless railroad bonds to unwitting buyers.
d. insurance fraud.
Question 4Modern investment banking houses emerged in the U.S. in the 19th century to assist in financing:
a. railroad construction.
b. mail-order houses.
c. large corporations producing iron and steel.
d. the textile industry.
Question 5The federal government granted 200 million acres of land to railroads. Which of the following statements presents accurate information about these land grants?
a. The railroads were required to return 1/3 of the profits from the sale of this land to the federal government.
b. The alternate section provision allowed state governments to purchase portions of the land grants from the railroads at reduced prices.
c. The system of land grant subsidies were difficult to eliminate because of public opposition.
d. Congress required railroad companies that received land grants to transport mail, troops and government property at reduced rates.
Question 6The alternate-section provision was designed to:
a. allow the government to share in increased land values resulting from railroad building.
b. encourage private businesses to locate along railroad routes.
c. discourage farmers from cultivating crops near railroad routes.
d. make railroad stations more accessible to families.
Question 7The most significant kind of federal subsidy to railroads was
a. loans from the U.S. government.
b. reduced corporate income taxes.
c. land grants.
d. direct payments based on the number of miles of tracks laid.
Question 8Which of the following was not used to subsidize railroad companies and their building of railroads?
a. Loans from the U.S. government
b. Reduced corporate income taxes
c. Land grants
d. Direct payments based on the number of miles of tracks laid
Question 9A number of economic historians have attempted to determine whether US railroads were built ahead of demand. Which of the following statements presents accurate information about the findings of this area of research?
a. Fogel and Mercer found that post-bellum transcontinental had relatively low initial profit rates that grew over time.
b. According to Fishlow, antebellum railroads were built ahead of demand, but post-bellum transcontinentals were not.
c. Fishlow finds that government aid to antebellum railroads was generous and widespread.
d. Mercer finds that rates of return on all post-bellum transcontinental railroads were less than rates on alternative investments.
Question 10Quantitative evidence from Fishlow, Fogel and Mercer indicates that
a. antebellum railroads were built ahead of demand, but post-bellum transcontinentals were not.
b. post-bellum transcontinentals were built ahead of demand, but antebellum railroads were not.
c. both antebellum railroads and post-bellum railroads were built ahead of demand.
d. antebellum railroads were not built ahead of demand, but the evidence on post-bellum railroads is mixed.
Question 11Albert Fishlow argued that if the railroads were built ahead of demand we would observe initial profit rates that were ______ and initial population densities near railroads that were _______.
a. low; high.
b. high; low.
c. low; low.
d. high; high.
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