Question 1

Many railroads received government subsidies and land grants and,thus,were influenced by the government.

Accepted Answer

Many railroads in the United States during the 19th century received government subsidies and land grants, which had a significant influence on their operations and development. These subsidies and grants were usually provided as incentives to promote the expansion of the rail network and improve transportation and communication across the country. As a result, many railroads became closely tied to the government, and their policies and decisions were often influenced by political and economic considerations.

Question 2

Fogel's (1964)work on railroads after the Civil War shows that they did not dominate the markets?for steel,coal or wood.

Accepted Answer

Fogel's work, particularly in "Railroads and American Economic Growth: Essays in Econometric History" (1964), argued that railroads were not as essential to economic growth as previously thought, suggesting they did not dominate markets for steel, coal, or wood to the extent traditionally believed. His analysis indicated that the economy could have still grown without the rapid expansion of railroads, challenging the prevailing view of their impact.

Question 3

As in the modern world,price-discriminating railroad industrialists of yesteryear charged the highest prices in markets with the steepest competition.

Accepted Answer

Price-discriminating railroad industrialists of yesteryear charged the highest prices in markets with the least amount of competition. This allowed them to maximize their profits by taking advantage of the relatively inelastic demand for transportation in areas where they faced little or no competition.

Question 4

The Fourteenth Amendment was applied to the railroads in the Santa Clara County v Southern Pacific Railroad (1886)decision even though the original intent of that amendment had been to protect the property of former slaves.

Accepted Answer

The statement is true. In the Santa Clara County v Southern Pacific Railroad (1886) decision, the Supreme Court applied the Fourteenth Amendment to the railroads, granting them the same rights as people and corporations, despite the fact that the amendment was originally intended to protect the civil rights of former slaves. This decision has had significant implications for corporate personhood and the power of corporations in American politics.

Question 5

The U.S.federal government embraced all of the Populists' requests,including the nationalization ?of the railroad system.

Accepted Answer

The U.S. federal government did not embrace all of the Populists' requests, including the nationalization of the railroad system.

Question 6

During the era from 1880 to 1920,the U.S.economy experienced a rise in big business,an expansion in industry and increased concentration in both.

Accepted Answer

This period in American history is known as the "Gilded Age" and is characterized by the rise of major corporations and monopolies in industries such as oil, steel, and railroads. This led to increased concentration of wealth and power in the hands of a few individuals and companies.

Question 7

Historically,price discrimination was aggressive behavior exhibited by whom? The
A) monopolist
B) mom and pop business person
C) manager of a large group of industrial workers
D) corporation

Accepted Answer

Price discrimination is a strategy used by a monopolist to maximize profits by charging different prices to different consumers for the same product or service. Mom and pop businesses or managers of industrial workers do not have the market power to engage in price discrimination, and corporations may or may not have monopoly power depending on the industry and market.

Question 8

Modern work in economic history by people like Robert Fogel (1964)and Albert Fishlow (1965)shows
A) that railroads were the indispensable key to rapid economic growth in the 19th century.
B) that the levels of Gross National Product (GNP) reached in 1890 would have been reached?in 1880 had it not been for reckless railroad speculation.
C) that less than 5% of the country's late 19th-century economic growth was attributable to railroads.
D) none of the above.

Accepted Answer

Modern economic history work, particularly by scholars like Robert Fogel, has demonstrated that railroads, while important, were not as crucial to the economic growth of the late 19th century as previously thought. Fogel's analysis suggested that railroads contributed to less than 5% of the economic growth during that period, challenging the traditional view of their impact.

Question 9

The growth of total railroad mileage
A) was far greater after the Civil War than before.
B) was maximized in miles built per decade before 1860.
C) was a free-market phenomenon, not subject to government subsidies.
D) was not subject to business cycle fluctuations.

Accepted Answer

The growth of total railroad mileage was far greater after the Civil War than before. This was due to several factors, including government subsidies, increased demand for transportation, and technological advancements.

Question 10

Like the contemporary forms of transportation-airplanes,automobiles and trucks-railroads shifted from being perceived as a private luxury to a public necessity.

Accepted Answer

Railroads, along with airplanes, automobiles, and trucks, transformed transportation from a luxury reserved for the wealthy to a public necessity accessible to the majority of society.

Question 11

Martin's research (1971)supports the claim that the Interstate Commerce Commission (ICC)was?a federal regulatory agency,The ICC was designed to capture market gains for the consumers of railroad services as well as for the railroad industrialists.

Accepted Answer

Martin's research (1971) does support the claim that the ICC was a federal regulatory agency designed to capture market gains for both consumers and industrialists in the railroad industry.

Question 12

All railroads were private enterprises with no government influence.

Accepted Answer

The government played a significant role in the development of railroads in the United States, providing land grants, subsidies, and other types of support. Additionally, government regulations and oversight were established to ensure safety and fair business practices in the industry.

Question 13

North (1974)finds evidence to suggest that the iron industry was equally dependent on the railroad and iron stove industries for sales revenue at one point in time.

Accepted Answer

North (1974) found evidence to suggest that the iron industry was equally dependent on the railroad and iron stove industries for sales revenue at one point in time.

Question 14

Railroads fueled the expansion of all markets in the post-bellum period of U.S.history.

Accepted Answer

The answer of Railroads fueled the expansion of all markets...

Question 15

Railroads
A) were among the last of the pre-1890 big businesses to be regulated.
B) were only subject to regulation by governments when the federal government stepped in with?the Interstate Commerce Act of 1887.
C) were objects of regulation more than a decade before the Interstate Commerce Commission Act.
D) were never subject to government regulation before World War I and the "command economy."

Accepted Answer

Railroads were subject to regulation before the Interstate Commerce Commission Act, as states began regulating them in the 1870s.

Question 16

Fogel (1964)showed that railroad construction after the Civil War dominated the markets for which of the following?
A) Steel
B) Coal
C) Wood
D) None of the above

Accepted Answer

Fogel's analysis concluded that the impact of railroads on the economy was less significant than previously thought, suggesting that their construction did not dominate the markets for steel, coal, or wood to the extent traditionally believed.

Question 17

Charging "what the traffic will bear" was a tactic commonly pursued by American railroads before they were subjected to regulation.

Accepted Answer

This statement is true. Before the government began regulating the railroad industry, railroads were free to charge whatever fares they believed the market would bear. This often led to price discrimination and unfair practices.

Question 18

The Interstate Commerce Commission (ICC)(1887-1995)was the very first attempt by Congress and/or the federal government to regulate the railroads; regulation had previously come solely from the states.

Accepted Answer

The statement is true. The ICC was the first federal agency created to regulate interstate commerce, including the railroads. Prior to its creation, regulation had been handled by individual states.

Question 19

The pure competitor usually charges higher prices and offers more output than the monopolist?or oligopolist.

Accepted Answer

The statement is false. Pure competitors generally charge lower prices compared to monopolists or oligopolists, and they offer less output due to intense price competition.

Question 20

The Great Northern railroad was privately managed well by James J.Hill (1889)and never went bankrupt.

Accepted Answer

James J. Hill was known for his successful and efficient management of the Great Northern railroad, which never went bankrupt under his leadership.

Quiz 14: Railroads and Economic Development