The Main Issue in the 1824 Case Gibbons V

question 54

Multiple Choice

The main issue in the 1824 case Gibbons v. Ogden was the question of the power of the state of New York to grant a monopoly to

• A)the New York Times as the sole newspaper in New York City.
• B)an electrical utility to run lines through New York City.
• C)a railroad company to lay tracks from New York City ports to the state capital of Albany.
• D)a steamboat company to operate between New York and New Jersey.

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Definitions:

User Cost

The cost of using a good or service, which includes the opportunity cost of choosing one alternative over others.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Delayed Extraction

The postponement of resource or raw material extraction to achieve more efficient processing or higher market values at a later time.

Weak Property Rights

A situation where property rights are not fully enforced or clearly defined, leading to uncertainty and potential inefficiency in economic transactions.