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 transcontinental 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.
a. Fogel and Mercer found that post-bellum transcontinental had relatively low initial profit rates that grew over time.
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What is the difference between positive and normative statements?
What will be an ideal response?
Protectionist legislation is often passed because:
A. employers in the affected industry lobby more effectively than the workers in that industry. B. both employers and workers in the affected industry lobby for protectionist policies. C. trade restrictions often benefit domestic consumers in the long run, though they must pay more in the short run. D. it helps to keep domestic prices at a relatively lower level.
Poor Asian countries may have per capita GDPs that may be less than $250. Why is this somewhat misleading for comparative purposes?
A. Most rich country’s GDP is nonmarket activity. B. A significant amount of poor country’s GDP is nonmarket activity. C. Poor countries do not use dollars. D. Poor countries have few resources.
Economy A: gross investment equals depreciation Economy B: depreciation exceeds gross investment Economy C: gross investment exceeds depreciation Other things equal, the above information suggests that the production capacity in economy:
a) B is growing more rapidly than either A or C. b) A is growing more rapidly than either B or C. c) A is growing less rapidly than economy B. d) C is growing more rapidly than economy B.