During the great canal-building era, from roughly 1815 to 1843, Hughes and Cain (2011) claim that
(a) most canals earned normal profits.
(b) no canals earned profits.
(c) all canals in the initial period of construction earned normal profits but none did in the later period because of over-construction and competition from the railroads.
(d) the Erie Canal was one of the few, perhaps the only one, to earn normal profits.
(d)
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Which of the following allow banks to minimize the cost to a business of borrowing?
I. Borrowing long and lending short II. Raising funds from a large number of depositors III. Creating money by lending all their reserves A) I only B) II only C) I and III D) II and III
The 2011 U.S. distribution of income shows that the top 20 percent of families have approximately what share of income?
a. 20 percent b. 35 percent c. 50 percent d. 80 percent
The "principle of rival consumption" applies to which of the following?
A) national defense B) the free-rider problem C) the exclusion principle D) a private good
Prior to the deregulation of the railroad industry, there was little incentive to invest in new technology or equipment. This is an example of
A. Market failure. B. The failure of laissez faire. C. The failure of deregulation. D. The inefficiencies of regulation