What Did the State and Federal Governments Do to Encourage

question 7

Multiple Choice

What did the state and federal governments do to encourage railroad construction in the decades after the Civil War?

• A) They gave railroad companies 180 million acres of public land.
• B) They gave railroads rights-of-way across homesteaders' land.
• C) They sold land to railroad companies at bargain prices.
• D) They reclaimed acreage already settled by farmers and sold it to the railroads.

---

Definitions:

Price Discrimination

The practice of selling the same product to different buyers at different prices, based on factors other than cost.

Consumer Surplus

The difference between the total amount consumers are willing to pay for a good or service and the actual amount they pay.

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual amount they receive by selling it at the market price.

Direct Price Discrimination

The practice of charging different prices to different consumers for the same product or service, based on the buyer's willingness to pay.