All of the Following Were True of Farmers After 1790

question 68

Multiple Choice

All of the following were true of farmers after 1790 except

• A)they ate most of what they grew.
• B)they traded with their neighbors.
• C)they sent surplus products to outside markets.
• D)they generally raised only one variety of animal or plant.
• E)they profited from world markets without becoming dependent on them.

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Definitions:

Economic Rent

The excess payment or profit made over the minimum amount required to bring a factor of production into use.

Pure Rate of Interest

The rate of return on a risk-free investment, theoretically excluding the effects of inflation, default risk, and other factors.

Residual Claimants

Individuals or entities entitled to a share of an organization’s income only after all other claims, such as debts and taxes, have been satisfied.

Interest Rate

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid to the lender.