Albro Martin (1971) argues that the Interstate Commerce Commission (1887–1995) was captured by its customers, not the railroad industrialists. Other researchers like Gabriel Kolko (1965) highlight the involvement of railroad industrialists in capturing this government agency to serve a cartel role, too. Indicate whether the statement is true or false ANSWER TRUE
Fears that the Munn v Illinois (1877) doctrine would result in excessive government control over businesses were not realized, for it actually had the effect of retarding government regulation. Indicate whether the statement is true or false ANSWER FALSE
If many banks fail, this is likely to cause a/an a. increase in the currency-to-deposit ratio. b. increase in the reserves-to-deposit ratio. c. a fall in the currency-to-deposit and reserves-to-deposit ratios. d. both a and b. e. none of the above. ANSWER D
Roads during the 1800s proved to be a preferred transportation alternative to railroads and thus competed successfully for profits. Indicate whether the statement is true or false ANSWER FALSE
Railroads attracted funds from foreign investors. Indicate whether the statement is true or false ANSWER TRUE
The percentage of the population that lived in urban areas rose from approximately 5% in 1790 to 40% in 1860. Indicate whether the statement is true or false ANSWER FALSE
Which sector consists of services traded for food, shelter, housing or other services? (a) tertiary (b) secondary (c) primary (d) international ANSWER (a)
Railroad competition was the primary cause of canal failures. Indicate whether the statement is true or false ANSWER FALSE
Throughout U.S. history, entrepreneurial activity would occur when (a) centralized economic planning was involved (b) distributed rights to profits were clear and protected (c) government intervention was pervasive (d) all of the above ANSWER (b)
The three acts that form the basic machinery behind the U.S. anti-trust laws are the Sherman Act of 1890, the Federal Trade Commission Act of 1914, and the Robinson Patman Act of 1836. Indicate whether the statement is true or false ANSWER FALSE
