ECON 20 Lecture Notes - Lecture 6: Embargo Act Of 1807, Land Values, Economic Surplus
11 May 2020
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Document Summary
The us economy is not very different in the 1800s than it used to be (no industrialization) . Farmers pov: must look at cost of production and the distance one is willing to ship to market (city) south was more connected to europe. Price of goods in the market will determine how willing the farmer is. Economic distance: takes into account the actual physical distance and the costs. As of 1800, transportation costs were the most dominant cost, which determined what someone produced . Inland transportation: can happen over land, river land transport was extremely expensive because it occurred more by wagons. Spoilage is a huge issue as to what items can come to market most valuable farms are those that are close to navigable rivers. Transportation costs upstream transportation was more costly than downstream transportation (deals with power and technology of boats)
