A Number of Economic Historians Have Attempted to Determine Whether

question 41

Multiple Choice

A number of economic historians have attempted to determine whether US railroads were built ahead of demand.  Which of the following statements presents accurate information about the findings of this area of research?

• A) Fogel and Mercer found that post-bellum transcontinentals had relatively low initial profit rates that grew over time.
• B) According to Fishlow, antebellum railroads were built ahead of demand, but post-bellum transcontinentals were not.
• C) Fishlow finds that government aid to antebellum railroads was generous and widespread.
• D) Mercer finds that rates of return on all post-bellum transcontinental railroads were less than rates on alternative investments.

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Definitions:

Supplier Selection

The process of assessing and choosing the most suitable suppliers based on criteria like cost, quality, service, and reliability.

Procurement

The process of obtaining goods and services, including the negotiation of terms, selection of suppliers, and the formal agreement of contracts.

Direct Materials

Raw materials that are directly incorporated into and can be directly traced back to a finished product in the manufacturing process.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.