Chapter 15 Agriculture’s Western Advance

GENERAL QUESTIONS

1. Which of the following statements correctly characterizes changes in farming and agriculture land during the period between 1870 and 1900? a. The number of farms rose, but the number of acres under cultivation fell. b. The number of farms fell, but the number of acres under cultivation rose. c. The number of farms as well as the number of acres under cultivation rose. d. The number of farms as well as the number of acres under cultivation fell.

2. Which of the following pieces of legislation represents a liberalization of federal land policy? a. the Homestead Act of 1862 b. the Timber-Culture Act of 1873 c. the Dawes Act of 1887 d. the Stock-Raising Homestead Act of 1916 e. all of the above

2. Under the Dawes Act of 1887, a. nearly 100 acres of Indian territories were opened for public purchase. b. “squatters” rights were legally recognized. c. substantial tracts of land were granted to western railroads. d. 160 acres was granted to anyone who agreed to plant trees on at least 40 acres. 3. According to Gary Libecap and Ronald Johnson, which of the following was one positive outcome of the fraud that often allowed large companies to obtain land intended for homesteaders? a. Fines charged to fraudulent companies provided substantial revenues for the federal government. b. Resources were transferred to companies that could take advantage of economies of scale. c. Conflicts between farmers and railroads were reduced. d. Legislators friendly to economic development were elected because of backing from the fraudulent companies.

4. Quantitative evidence on federal land policy has led current economic historians to conclude that a. the policy was inefficient and reduced total output. b. the policy was largely inefficient, with evidence of increased output only found on large farms. c. the Homestead Act allowed western farmers to enjoy rising agricultural prices for most of the postbellum period. d. average rates of return on western agricultural investments were comparable to those in manufacturing. 5. By 1900, the leading cotton producing state was a. Georgia. b. Louisiana. c. Texas. d. Mississippi.

7. Between 1870-1910, quantitative evidence shows very little, if any growth in bushels produced per acre for crops like corn and wheat. Which of the following statements correctly depicts the situation of farmers during this period? a. Although output per acre was not growing, increased labor productivity allowed farmers to earn profits. b. Farmers exited corn and wheat production due to lack of profits in these crops. c. Because output per acre was not growing, farmers were forced to produce corn and wheat on farms of 60 acres or less. d. Corn and wheat production became concentrated in the Great Lakes region, where small farms were common after the Civil War.

8. Cyrus McCormick is best known for a. manufacturing the mechanical reaper. b. developing hybrid strains of corn. c. introducing chemical fertilizers. d. the invention of the single-horse plow.

9. Which of the following statements correctly characterizes farm incomes in the second half of the 19th century? a. Real per capita income fell. b. The rate of growth in real income per worker was negative. c. Nominal per capita income fell, but real per capita income remained unchanged. d. Growth rates in per capita income were positive but small.

10. Which of the following did not contribute to the farmer’s worsening terms of trade during the period of 1875-1895? a. a rapid increase in the supply of agricultural products b. output increases as a result of technological change during the period c. a rise in demand for U.S. crops after the Civil War d. the income elasticity of demand for most agricultural crops was less than one

11. Problems for farmers in the last half of the 19th century included a. falling per capita incomes. b. reduced domestic agricultural output. c. rising prices for consumer goods. d. increased world supply of agricultural products. e. all of the above. 12. During the second half of the 19th century, export demand for U.S. agricultural products a. declined. b. increased. c. remained static. d. experienced chaotic periods in increase and decrease.

13. According to research by Richard Scylla and John James on western farm mortgage rates, a. real rates were comparable to rates charged to eastern manufacturers. b. relatively high real rates were due to the monopoly power of lenders. c. relatively high rates reflected high lending risks associated with agricultural loans. d. farmers’ nominal rates were high, but real rates were actually less than those charged for most loans.

14. Farmers who joined the Greenback Party in the late-19th century felt that a. the government should make efforts to curb the inflation that the country was experiencing. b. farm prices were too high in comparison to the overall price-level of the economy. c. the government should own all transportation and communication facilities. d. an increase in the money supply would benefit debtors.

15. The first farm organization of importance was the a. Grangers. b. Greenback Party. c. Southern Alliance. d. Populists.

16. Established in 1862, the Department of Agriculture’s functions during the 19th and early 20th century included all of the following except a. research and experimentation on plant and animal breeding. b. regulation of agricultural prices and output. c. distribution of information through publications and experiment stations. d. regulation of quality through inspection of meat and dairy products.

17. The Morrill Act of 1862 established e. local chapters of the organization that later became known as “Future Farm Leaders of America.” f. state-run agricultural experiment stations. g. “land-grant” colleges that provided agricultural education and research. h. funding for high-school vocational training.

18. Which of the following presidents is remembered for his role in championing American conservation legislation? a. Warren G. Harding b. Abraham Lincoln c. Ulysses S. Grant d. Theodore Roosevelt

19. Major achievements of the Roosevelt administration in the field of conservation included all of the following except a. protection of 150 acres of national forests. b. retention of rights to 75 million acres of mineral wealth. c. adoption of policies that would ultimately provide for construction of reservoirs and irrigation projects. d. protection of over 100 species of animals and birds, including the bald eagle.

ECONOMIC INSIGHTS

1. What best describes what happens to the share of income spent on food as income increases? a. The share increases. b. The share decreases. c. The share stays the same.

2. According to the text, what best explains the price for federal land that would have maximized real GNP? a. Some price above zero that maximizes government revenues to be redistributed fairly to the people. b. Some price above zero that minimizes negative environmental externalities. c. A price equal to zero that eliminates the welfare loss associated with land not used for production. d. A subsidized price that distributes land based on egalitarian principles.

ECONOMIC ANALYSIS

1. Increases in the price of farm labor during the postbellum period led to a(n) a. increase in farmers’ demand for capital equipment. b. decrease in farmers’ demand for land. c. decrease in the demand for food. d. increase in the demand for fertilizer.

2. Which of the following statements correctly characterizes the elasticity of demand for food? a. While food demand is not very responsive to changes in price, increases in income produce big increases in the demand for food. b. As income increases, the quantity demanded of food decreases. c. If the price of food falls by 5 percent, quantity demanded will rise by less than 5 percent. d. People consume the same amount of food regardless of the price of food.

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