Economic History: Land Acquisition In The United States
Economics 111A
Economic History
Midterm Exam 2
In general, the highest grades will be given to clear and precise answers. Use your time wisely, and good luck. You will be given one hour and twenty minutes to complete the exam.
1. Land acquisition in the U.S. was incredibly important for the extensive economic growth of the country in the 19th century. a. Why did the US want the territory gained from the Louisiana Purchase? What was the controversy regarding the purchase? (6 points)
They wanted transit rights to New Orleans so that they could access their western territory using the Mississippi and Missouri Rivers.
Monroe spent $15 million on the whole territory instead of $2 million on transit rights without Congressional …show more content…
Definition
160 acres free if you lived on it for 5 years or after 6 months paid $1.25 per acre
g. For
Fogel and Rutner show that because of the increase in the marginal product of western labor as a result of settling western territory there is an increase in national income and wages in both east and west.
h. Against
It moved people west that should have stayed east given that the cost of farming was misrepresented
4. Canals and Steamboats were important innovations that led to a reduction in transportation costs in the pre-Civil War era. i. Why are reductions in transportation costs important for economic growth? (describe in detail) (6 points)
Transportation Costs define land values
Transportation Costs define areas of commercial and subsistence farming.
Land Values
City
A
B Distance from City
j. What was the Erie Canal? Name and explain four overall contributions of the Erie Canal and the Canal Period (these could be contributions to economic growth or contributions to future transportation projects). (15 points)
Definition:
The canal linking New York Harbor and the Midwest
i. Proved that canals were technologically …show more content…
Lighter wood was used xii. Main deck left unenclosed.
l. What was the major difference between the source of the productivity gains in canals and steamboats? Explain. (6 points)
Canals were publically funded and steamboat improvements were privately funded. The fixed costs were higher for canals than steamboats and required public, or government, funding.
5. The period before the Civil War marks the birth of the U.S as an industrial leader in the global economy. m. List and explain four reasons presented in lecture and/or discussion for why industrialization began in Cotton Textiles. (12 points)
xiii. Great Britain had adopted technology in this industry. Easily transferred. xiv. Jefferson’s Embargo and blockade by British with the war of 1812 occurred shortly after industry was born and restricted competition. xv. Organizational Innovation by Lowell’s Waltham Mill – spinning and weaving under one roof. xvi. Organizational Innovation by Lowell’s Waltham Mill – recruited young women (strong, inexpensive, willing to do tedious work for hours on end) xvii. Price elasticity of demand for cotton textiles was high. A small reduction in price meant huge increases in quantity
Economic History
Midterm Exam 2
In general, the highest grades will be given to clear and precise answers. Use your time wisely, and good luck. You will be given one hour and twenty minutes to complete the exam.
1. Land acquisition in the U.S. was incredibly important for the extensive economic growth of the country in the 19th century. a. Why did the US want the territory gained from the Louisiana Purchase? What was the controversy regarding the purchase? (6 points)
They wanted transit rights to New Orleans so that they could access their western territory using the Mississippi and Missouri Rivers.
Monroe spent $15 million on the whole territory instead of $2 million on transit rights without Congressional …show more content…
Definition
160 acres free if you lived on it for 5 years or after 6 months paid $1.25 per acre
g. For
Fogel and Rutner show that because of the increase in the marginal product of western labor as a result of settling western territory there is an increase in national income and wages in both east and west.
h. Against
It moved people west that should have stayed east given that the cost of farming was misrepresented
4. Canals and Steamboats were important innovations that led to a reduction in transportation costs in the pre-Civil War era. i. Why are reductions in transportation costs important for economic growth? (describe in detail) (6 points)
Transportation Costs define land values
Transportation Costs define areas of commercial and subsistence farming.
Land Values
City
A
B Distance from City
j. What was the Erie Canal? Name and explain four overall contributions of the Erie Canal and the Canal Period (these could be contributions to economic growth or contributions to future transportation projects). (15 points)
Definition:
The canal linking New York Harbor and the Midwest
i. Proved that canals were technologically …show more content…
Lighter wood was used xii. Main deck left unenclosed.
l. What was the major difference between the source of the productivity gains in canals and steamboats? Explain. (6 points)
Canals were publically funded and steamboat improvements were privately funded. The fixed costs were higher for canals than steamboats and required public, or government, funding.
5. The period before the Civil War marks the birth of the U.S as an industrial leader in the global economy. m. List and explain four reasons presented in lecture and/or discussion for why industrialization began in Cotton Textiles. (12 points)
xiii. Great Britain had adopted technology in this industry. Easily transferred. xiv. Jefferson’s Embargo and blockade by British with the war of 1812 occurred shortly after industry was born and restricted competition. xv. Organizational Innovation by Lowell’s Waltham Mill – spinning and weaving under one roof. xvi. Organizational Innovation by Lowell’s Waltham Mill – recruited young women (strong, inexpensive, willing to do tedious work for hours on end) xvii. Price elasticity of demand for cotton textiles was high. A small reduction in price meant huge increases in quantity