Question 1

Gains in railroad productivity were caused by

Accepted Answer

A)  more powerful locomotives. 
B)  automatic couplers. 
C)  air brakes. 
D)  All of the above are correct. 
E)  Only a and b are correct. 
A)  more powerful locomotives. 
B)  automatic couplers. 
C)  air brakes. 
D)  All of the above are correct. 
E)  Only a and b are correct. D

Question 2

The Grangers would most likely support which policy?

Accepted Answer

A)  Price controls on grain operators 
B)  Price deflation 
C)  A strong commitment to backing currency only with gold 
D)  Federal government aid to railroads 
A)  Price controls on grain operators 
B)  Price deflation 
C)  A strong commitment to backing currency only with gold 
D)  Federal government aid to railroads A

Question 3

A common unscrupulous financial practice of railroad promoters (and the basis of the Credit Mobilier scandal) involved

Accepted Answer

A)  federal tax evasion. 
B)  "insider" ownership of railroad construction companies. 
C)  sales of worthless railroad bonds to unwitting buyers. 
D)  insurance fraud. 
A)  federal tax evasion. 
B)  "insider" ownership of railroad construction companies. 
C)  sales of worthless railroad bonds to unwitting buyers. 
D)  insurance fraud. B

Question 4

Cartels

Accepted Answer

A)  encourage competition. 
B)  attempt to restrict output in order to raise prices. 
C)  rely on legally enforceable contracts between cartel participants. 
D)  rely on advertising and packaging to increase profits. 
E)  All of the above. 
A)  encourage competition. 
B)  attempt to restrict output in order to raise prices. 
C)  rely on legally enforceable contracts between cartel participants. 
D)  rely on advertising and packaging to increase profits. 
E)  All of the above.

Question 5

The Grangers were:

Accepted Answer

A)  an organization designed to support the interests of railroads. 
B)  an agrarian organization. 
C)  an abolitionist organization. 
D)  a society that petitioned for Prohibition. 
A)  an organization designed to support the interests of railroads. 
B)  an agrarian organization. 
C)  an abolitionist organization. 
D)  a society that petitioned for Prohibition.

Question 6

Albert Fishlow argued that if the railroads were built ahead of demand we would observe initial profit rates that were very ______ and initial population densities that were very _______.

Accepted Answer

A)  low; high. 
B)  high; low. 
C)  low; low. 
D)  high; high. 
A)  low; high. 
B)  high; low. 
C)  low; low. 
D)  high; high.

Question 7

Before the nation's first transcontinental railroad was completed, travelers to the West Coast used which forms of transportation?

Accepted Answer

A)  clipper ship, wagon, mule 
B)  dugout canoe, dirigible, horse 
C)  clipper ship, dugout canoe, mule 
D)  All of the above are correct. 
E)  Only a and c are correct. 
A)  clipper ship, wagon, mule 
B)  dugout canoe, dirigible, horse 
C)  clipper ship, dugout canoe, mule 
D)  All of the above are correct. 
E)  Only a and c are correct.

Question 8

The Willie and Martin Companies were

Accepted Answer

A)  two groups of Mormon "handcarters" who were stranded when early winter storms interrupted their migration. 
B)  two work teams that were instrumental in completing the first transcontinental railroad. 
C)  the northern and southern branches, respectively, of the Granger organization. 
D)  two railroad construction companies that were found to have "insiders" on the boards of railroad companies with which they contracted. 
A)  two groups of Mormon "handcarters" who were stranded when early winter storms interrupted their migration. 
B)  two work teams that were instrumental in completing the first transcontinental railroad. 
C)  the northern and southern branches, respectively, of the Granger organization. 
D)  two railroad construction companies that were found to have "insiders" on the boards of railroad companies with which they contracted.

Question 9

Price discrimination results in _____________ than would be observed under a single-price monopoly.

Accepted Answer

A)  higher output and lower costs 
B)  lower output and higher costs 
C)  higher output and higher costs 
D)  lower output and lower costs 
A)  higher output and lower costs 
B)  lower output and higher costs 
C)  higher output and higher costs 
D)  lower output and lower costs

Question 10

After computing the social savings from the railroads, Fogel concluded that ______.

Accepted Answer

A)  the railroads were indispensable to the economic development of the United States. 
B)  the railroads were not indispensable in 1850 but by 1890 were dispensable. 
C)  the railroads could explain only a small fraction of the growth in real income in the United States. 
D)  economics is not sufficiently scientific to make a meaningful calculation of the social savings. 
A)  the railroads were indispensable to the economic development of the United States. 
B)  the railroads were not indispensable in 1850 but by 1890 were dispensable. 
C)  the railroads could explain only a small fraction of the growth in real income in the United States. 
D)  economics is not sufficiently scientific to make a meaningful calculation of the social savings.

Question 11

The Elkins Act of 1903

Accepted Answer

A)  outlawed any departure from a published shipping rate. 
B)  authorized the courts to enjoin railroads from unlawfully discriminating. 
C)  made the receiver of a rebate guilty of violating the law. 
D)  probably reflected the wishes of a large majority of railroad companies. 
E)  All of the above. 
A)  outlawed any departure from a published shipping rate. 
B)  authorized the courts to enjoin railroads from unlawfully discriminating. 
C)  made the receiver of a rebate guilty of violating the law. 
D)  probably reflected the wishes of a large majority of railroad companies. 
E)  All of the above.

Question 12

In the Wabash case (1886), the Supreme Court held that

Accepted Answer

A)  states cannot enact laws that interfere with interstate commerce. 
B)  states could restrict price-discrimination based on person, but not price-discrimination based on place. 
C)  states could regulate railroad rates on long-hauls, but not rates on short-hauls. 
D)  held that railroad practices could not be regulated by any federal or state governing body. 
A)  states cannot enact laws that interfere with interstate commerce. 
B)  states could restrict price-discrimination based on person, but not price-discrimination based on place. 
C)  states could regulate railroad rates on long-hauls, but not rates on short-hauls. 
D)  held that railroad practices could not be regulated by any federal or state governing body.

Question 13

Between 1864 and 1900, the largest portion of railroad track (as a percentage of total annual construction) was laid in which region of the U.S.?

Accepted Answer

A)  the Southeast 
B)  the Northeast 
C)  the Pacific Northwest 
D)  the Great Plains region 
A)  the Southeast 
B)  the Northeast 
C)  the Pacific Northwest 
D)  the Great Plains region

Question 14

In considering the financial history of the transcontinental railroads, the text argues that

Accepted Answer

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 charged  immigrants for what was really free federal land. 
D)  there was a great deal of corruption, mostly because construction companies were run by insiders. 
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 charged  immigrants for what was really free federal land. 
D)  there was a great deal of corruption, mostly because construction companies were run by insiders.

Question 15

Early efforts by states to regulate the railroads

Accepted Answer

A)  resulted in "Granger laws." 
B)  resulted in laws that were initially supported by the railroads. 
C)  outlawed product discrimination. 
D)  allowed for higher charges on short haul freight. 
A)  resulted in "Granger laws." 
B)  resulted in laws that were initially supported by the railroads. 
C)  outlawed product discrimination. 
D)  allowed for higher charges on short haul freight.

Question 16

The alternate-section provision was designed to

Accepted Answer

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. 
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 17

The first independent federal regulatory agency was

Accepted Answer

A)  Interstate Commerce Commission. 
B)  Federal Trade Commission. 
C)  Federal Bureau of Alcohol, Tobacco, and Fire Arms. 
D)  United States Fair Trade Commission. 
A)  Interstate Commerce Commission. 
B)  Federal Trade Commission. 
C)  Federal Bureau of Alcohol, Tobacco, and Fire Arms. 
D)  United States Fair Trade Commission.

Question 18

Albro Martin and the text contend that the work of the Interstate Commerce Commission was largely for the benefit of _________.

Accepted Answer

A)  consumers. 
B)  the environment. 
C)  the federal government. 
D)  major shippers. 
A)  consumers. 
B)  the environment. 
C)  the federal government. 
D)  major shippers.

Question 19

In defining the ____ from the railroad, economic historians measure the extra real GNP that can be attributed to this innovation.

Accepted Answer

A)  profits 
B)  balance of trade 
C)  wage income 
D)  social savings 
A)  profits 
B)  balance of trade 
C)  wage income 
D)  social savings

Question 20

In the 1870s, excess capacity in the railroad industry led to

Accepted Answer

A)  rates wars. 
B)  the formation of regional federations to pool traffic or profits. 
C)  price-fixing. 
D)  hidden rate-cutting through rebates. 
E)  All of the above. 
A)  rates wars. 
B)  the formation of regional federations to pool traffic or profits. 
C)  price-fixing. 
D)  hidden rate-cutting through rebates. 
E)  All of the above.

Exam 16: Railroads and Economic Change

Gains in railroad productivity were caused by

The Grangers would most likely support which policy?

A common unscrupulous financial practice of railroad promoters (and the basis of the Credit Mobilier scandal) involved

Cartels

The Grangers were:

Albert Fishlow argued that if the railroads were built ahead of demand we would observe initial profit rates that were very ______ and initial population densities that were very _______.

Before the nation's first transcontinental railroad was completed, travelers to the West Coast used which forms of transportation?

The Willie and Martin Companies were

Price discrimination results in _____________ than would be observed under a single-price monopoly.

After computing the social savings from the railroads, Fogel concluded that ______.

The Elkins Act of 1903

In the Wabash case (1886), the Supreme Court held that

Between 1864 and 1900, the largest portion of railroad track (as a percentage of total annual construction) was laid in which region of the U.S.?

In considering the financial history of the transcontinental railroads, the text argues that

Early efforts by states to regulate the railroads

The alternate-section provision was designed to

The first independent federal regulatory agency was

Albro Martin and the text contend that the work of the Interstate Commerce Commission was largely for the benefit of _________.

In defining the ____ from the railroad, economic historians measure the extra real GNP that can be attributed to this innovation.

In the 1870s, excess capacity in the railroad industry led to

Growth, Welfare, and the American Economy

Founding the Colonies

Colonial Economic Activities

The Economic Relations of the Colonies

Economic Progress and Wealth

Three Crises and Revolt

Hard Realities for a New Nation

Land and the Early Westward Movements

Transportation and Market Growth

Market Expansion and Industry in First Transition

Labor During the Early Industrial Period

Money and Banking in the Developing Economy

The Entrenchment of Slavery and Regional Conflict

War, Recovery, and Regional Divergence

Agricultures Western Advance

Industrial Expansion and Concentration

The Emergence of Americas Labor Consciousness

Money, Prices, and Finance in the Postbellum Era

Commerce at Home and Abroad

World War I, 1914-1918

The Roaring Twenties

The Great Depression

The New Deal

World War Ii

The Changing Role of the Federal Government

The Changing Role of the Federal Government: Consumer Safety, Agriculture, the Environment, and Housing

Monetary Policy, Fiscal Policy, and the Business Cycle After World War Ii

Manufacturing, Productivity, and Labor

Achievements of the Past, Challenges for the Future

Filters

Albert Fishlow argued that if the railroads were built ahead of demand we would observe initial profit rates that were very and initial population densities that were very _.