Which Improvement Most Dramatically Increased the Speed and Lowered the Expense

question 8

Multiple Choice

Which improvement most dramatically increased the speed and lowered the expense of commerce in the first half of the nineteenth century?

• A) The transcontinental railroad.
• B) Canals and steamboats.
• C) The factory system.
• D) A system of federally financed roads.

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Definitions:

Purely Competitive Conditions

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product.

Wage Rate

The amount of compensation given to employees for their services per unit of time, which can be hourly, daily, or annually based.

Total Product

The total quantity of output produced by a firm or industry.

Purely Competitive Market

A market structure characterized by many buyers and sellers, homogeneous products, and no barriers to entry or exit, leading to price taking behavior.