Which of the following was not used to subsidize railroad companies and their building of railroads?
a. Loans from the U.S. government
b. Reduced corporate income taxes
c. Land grants
d. Direct payments based on the number of miles of tracks laid
Question 2
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.
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