Fogel Argued That Railroads Were More Cost Effective Than Canals

question 40

Multiple Choice

Fogel argued that railroads were more cost effective than canals because railroads were faster and were in service all year and that using rail instead of canals would ____.

• A) lower freight rates on the railroads.
• B) lower government subsidies for railroads.
• C) lower inventories of grain in the East.
• D) reduce the wheat being shipped to Europe.

Understand the necessity and processes of exchange in economies.

Recognize the limitations and challenges of barter systems.

Identify the functions and characteristics of money.

Appreciate the role of specialization and labor division in economic exchange.

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Definitions:

Reinvest Profits

The practice of using profits generated by a business to invest back into the business to promote growth and development.

Arbitration

A method of dispute resolution in which a neutral third party makes a binding decision after considering the evidence and arguments.

Natural Flowers

Flowers that are grown and harvested from the earth as opposed to artificial or synthetic flowers.