The Gallatin Plan (1808) to provide internal land and water transport in the eastern part of the country was a plan that (a) called for the federal government to finance and build the transport system. (b) called for the eastern states to join together to finance and build the system. (c) called for private financing […]
Robert Fogel (1964) demonstrates that (a) the social saving of the railroad was large; much of the country (over 25%) could not have been settled and cultivated without the railroad. (b) the canal and river systems of transportation could very nearly have produced the same results as the railroad in terms of land cultivated. (c) […]
The Gallatin Plan (1808) (a) was a plan by the U.S. Senate for a comprehensive system of internal land and water transport in the eastern part of the country to be built by the federal government. (b) was promoted on the basis that only the federal government could command sufficient resources to build a transportation […]
The Sherman Antitrust Act of 1890 (a) did not specify what economic actions are legal. (b) said that only competitive economic actions were legal. (c) declared illegal every combination in restraint of trade. (d) declared none of the above. ANSWER (d)
The Sherman Antitrust Act of 1890 was not well understood because (a) skilled lawyers were not involved in its creation. (b) judges were mainly political hacks and therefore were unable to follow the logic of the Act. (c) vested interests had been allowed too much influence in drafting the legislation. (d) the purpose of the […]
Interstate Commerce Commission (ICC) Act of 1887 gave the federal government rate-setting powers. Indicate whether the statement is true or false ANSWER FALSE
The U.S. experience with the rise and fall of its railroad industry illustrates that central planners are less likely than private investors to allocate investment funds into wealth-creating projects. Indicate whether the statement is true or false ANSWER TRUE
The Board of Governors of the Federal Reserve System is responsible for a. approving changes in the discount rate. b. controlling monetary policy. c. administering discount lending. d. Both a and b e. All of the above ANSWER A
Assuming the Federal Reserve makes an open-market purchase of a government security worth $10,000 . By writing a check to pay for this security, the Federal Reserve a. reduces the balance of its assets by $10,000. b. reduces the balance of its liabilities by $10,000. c. neither reduces the balance of its assets nor the […]
Private initiative and financing were most important in (a) the canal system of transportation. (b) the steamboat system. (c) the railroad system. (d) none of the transportation systems. ANSWER (b)
