Compared with Canals, Railroads

question 56

Multiple Choice

Compared with canals, railroads

• A) were more expensive than canals to construct.
• B) transported freight more slowly.
• C) faced much less political opposition by vested economic interests.
• D) required less technological obstacles to overcome to construct and operate them safely.
• E) could be built almost anywhere with sufficient financial capital.

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Definitions:

Price Level

An indicator that measures the typical prices for a comprehensive selection of goods and services within the economy.

Quantity Theory of Money

An economic theory that relates the money supply to the level of prices and the rate of inflation, proposing that changes in the money supply will directly affect price levels in the economy.

Money Supply

The aggregate volume of currency and liquid instruments circulating within an economy, crucial for determining inflation rates and monetary policy.

Real GDP

The measure of a country's economic output adjusted for price changes or inflation.