Which of the Following Was Not Used to Subsidize Railroad

question 38

Multiple Choice

Which of the following was not used to subsidize railroad companies and their building of railroads?

• A) Loans from the U.S. government
• B) Reduced corporate income taxes
• C) Land grants
• D) Direct payments based on the number of miles of tracks laid

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Definitions:

Marginal Expenditure

The additional cost incurred from purchasing or producing one more unit of a good or service.

Average Expenditure

The average amount of money spent by consumers or firms on a particular good or service.

Monopsony

A market condition where there is only one buyer for many sellers, giving the buyer significant power over prices.

Input Demand

Refers to the demand for production inputs (like labor and raw materials), driven by the demand for the outputs those inputs produce.