Which of the Following Led to Overbuilding of Railroads in the 1860's

question 4

Multiple Choice

Which of the following led to overbuilding of railroads in the 1860's and 1870's?

• A)Reduction of taxes on railroads by the federal government
• B)The success of railroads in Europe
• C)The availability of financing due to public optimism
• D)The low cost of labor to construct railroads
• E)Increases in regulated freight rates by the Interstate commerce Commission

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Definitions:

Winning Bidders

The individuals or entities that offer the highest bid in an auction and are subsequently awarded the item or contract.

Winner's Curse

A situation in which the winner of an auction ultimately overpays or incurs a loss because of overly optimistic valuation of the asset bid on.

Optimistic Estimate

A projection or forecast that assumes the most favorable conditions and outcomes for a given situation.

Bid Shading

A strategy where a bidder offers a lower price than what they are actually willing to pay, often used in auctions to acquire items at a lower price.