Chapter 9



Chapter 9

Transportation and Market Growth

General Questions

1. The sharp decline in domestic freight costs during the antebellum period was primarily due to the introduction of

a. railroads.

b. paved roads.

c. clipper ships.

d. canals and steamboats.

2. Until the 1840s, the leading transport route in the United States (in terms of volume of freight from the West) was

a. the Northern Gateway.

b. the Northeastern Gateway.

c. the Southern Gateway.

d. the Erie Canal.

3. What is not correct about the three major gateways into the western territories in the 1800s?

a. The Northeastern was composed of canals, roads, and railroads and connected Pittsburgh to Philadelphia and Baltimore.

b. The Southern was comprised of the Mississippi, Ohio, and Missouri Rivers and ended in New Orleans.

c. The Mid-Atlantic connected Atlanta and Charlotte to Washington, D.C. with roads and railroads.

d. The one that connected the Great Lakes to New York was largely comprised primarily of canals and waterways.

4. The Erie Canal, the most important canal (in terms of the number and dollar value of shipments), was in

a. Georgia.

b. New York.

c. Pennsylvania.

d. Maryland.

5. DeWitt Clinton is most recognized for

a. inventing the wheat combine.

b. being one of the primary advocates of the abolition movement.

c. developing the technology to power railroad engines.

d. overseeing the building of the Erie Canal.

6. Which statement best describes the relationship between steamboats, keelboats, and flatboats on the Mississippi River in the antebellum period?

a. Steamboats were substitutes for both keelboats and flatboats.

b. Steamboats were complements for both keelboats and flatboats.

c. Steamboats were substitutes for keelboats and complements for flatboats.

d. Steamboats were substitutes for flatboats and complements for keelboats.

7. Robert Fulton is most recognized for

a. inventing of the cotton gin.

b. building the first steamboat.

c. being one of the primary advocates of the abolition movement.

d. developing the technology to power railroad engines.

8. What was not a benefit of the development of a national market?

a. It increased production by reducing "tragedy of the commons" problems.

b. It permitted greater division of labor.

c. It enabled people and organizations to engage more in their comparative advantages.

d. It led to lower costs because of increasing returns to scale that could be taken advantage of in more industries.

9. According to Walton and Rockoff, the primary reason the Federal government failed to build an adequate highway system before the Civil War was because

a. the technology was not available.

b. the canal craze diverted attention.

c. rivalries among different section of the country stalled legislation.

d. the teachings of Adam Smith were taken too literally.

10. Between 1820 and 1840 freight rates on western rivers declined drastically. The main reason for this drop in prices was because

a. of the decline in the price level.

b. tolls and other barriers to trade decreased.

c. of the decline in monopoly power.

d. the steamboat was used more frequently.

11. According to Walton and Rockoff, the primary reason for the demise of the canal system was

a. excessive reliance on individual entrepreneurs so that a system of canals was never created.

b. excessive government regulation that kept canal rates and profits too low.

c. environmental damage from deforestation that left canals flooded at some times and dry at others.

d. competition from the railroads.

12. Which of the following antebellum transportation innovations earned the greatest rate of return?

a. corporate-owned turnpikes

b. the National Road

c. the Erie Canal

d. the Mainline Canal

13. Despite dramatic increases in trackage during the antebellum period, the United States was slow to develop an integrated railroad system. This was primarily due to

a. the opposition of municipal governments to railroads.

b. the opposition of the federal government to railroads.

c. the failure to adopt a standard gauge for track.

d. heavy taxes on railroad companies.

13. Which of the following antebellum transportation innovations was financed primarily by government funds?

a. the Erie Canal

b. the New Orleans steamboat

c. the Lancaster Turnpike

d. the Ann McKim clipper ship

15. “Antebellum transportation improvements encouraged the South to specialize in cotton, while depending on the West for food and the Northeast for manufactured goods.” This statement

a. describes Rostow’s stages of growth model.

b. describes North’s interregional growth hypothesis.

c. describes Thomas Jefferson’s vision of the U.S. economy.

d. is supported by most contemporary economic historians.

16. Clipper ships

a. allowed for profitable shipping on both short and long journeys.

b. dominated Atlantic trade by 1850.

c. were among the first ships to have iron hulls.

d. earned huge profits transporting passengers and cargo to California and Australia during the gold rushes.

e. all of the above

Economic Insights

1. Which of the following was not a benefit from the lower costs of transportation that were achieved through advances in railroads, canals, and steamboats?

a. Free rider problems were reduced.

b. Farmers gained larger shares of the selling price of their crops.

c. Consumers paid decreasing shares of the purchase price for transportation and marketing costs.

d. New unsettled areas were profitably cleared and added to the nation’s economic activity.

2. What is the best inference about the impact of a decrease in transportation costs?

a. The demand and supply curves will shift out, which will increase quantities of goods.

b. The supply curve will shift out, which will lead to lower prices to consumers.

c. Farmers will earn a smaller share of the selling price of their crops.

d. The demand curve will shift out, which will lead to higher prices and quantities of goods.

3. What most accurately describes the trend in inter-city prices between 1815-1860?

a. Prices of goods in different Eastern cities diverged.

b. The prices of goods in the Midwest converged towards the prices of goods in the East.

c. Prices of goods in the Midwest decreased relative to the prices of goods in the East.

4. One of the most important reasons for U.S. economic growth in the antebellum period was market unification and falling costs of trade. Samuel F. B. Morse contributed significantly to these trends. Morse is most recognized for

a. inventing the telegraph.

b. inventing the steam engine.

c. developing the technology to power railroad engines.

d. overseeing the building of the Erie Canal.

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