Chapter 3 Study Guide

The ____ process was a process for making high-quality steel efficiently and cheaply.

Bessemmer

How did the expansion of railroads spur America's industrial growth?

By linking the nation, railroads increased the size of markets for many products. They also improved the economy by buying many things such as steel, coal, and timber

_______ costs are costs a company has to pay whether or not it is operating.

Fixed

What were the two main causes that contributed to the tripling of the American population between 1860 and 1910?

Large families and immigrants caused population growth. This growth provided a large workforce for factories and a great demand for products.

After reviewing the above map, describe how the air brake aided in the development of this transportation system.

They made braking safer and more precise and allowed railroads to operate at higher speeds, now that trains could be reliably stopped. They stopped all the cars in one rather than a person having to individually stop each car itself.

The first national association dedicated to women's labor issues was_________.

Women's Trade Union League

Who invented the telephone, which revolutionized both business and personal communication? a. Alexander Grahma bell b. Edwin Drake c. George Pullman d. Thomas Alva Edison

a. Alexander Grahma bell

The first nationwide labor protest was the a. Great Railroad Strike b. haymarket riot c. panic of 1873 d. Pullman strike

a. Great Railroad Strike

________ are people who risk their capital in organizing and running a business.

entrepreneurs

Laissez-faire advocates support high tariffs.

false

________ was a notoriously corrupt railroad owner.

jay gould

Andrew carnegie founded a steel company in Pittsburgh, pennsylvania, in 1875.

true

Before the Civil War, most railroads had been built to promote specific cities or to serve local needs.

true

Business pools would break apart when one member cut prices to steal marker from another.

true

A person who manages another person's property is called a _________

trustee

In 1882, Montgomery Ward formed the first trust, a new way of merging businesses that did not violate the laws against owning other companies.

false

Large corporation with high operating costs found it difficult to compete against small businesses, and many were forced out of business.

false

Small manufacturing companies that had been typical before the Civil War usually had very low operating costs, but very high fixed costs.

false

The American Federation of Labor was the first nationwide union.

false

The Knights of Labor called for a twelve hour workday and a government bureau of labor statistics.

false

To encourage railroad construction across the Great Plains, the federal government gave free steel to many railroad companies.

false

A nation's ________ is the total value of all goods and services it produces during a year.

gross national product(GNP)

"The history of all hitherto existing society is the history of class struggles. Freeman and slave, patrician and plebeian, lord and serf, guild master and journeyman, in a word, oppressor and oppressed, stood in constant opposition to one another....let the ruling classes tremble at a Communistic revolution. The proletarians have nothing to lose but their chains. They have a world to win. Working men of all countries, unite!"-Karl Marx Using the above quote as evidence, explain Marxist ideas and how these ideas influenced or failed to influence the politics of the United States during the industrial revolution.

the concept of class struggle plays a central role in understanding society's allegedly inevitable development from bourgeois oppression under capitalism to a socialist and ultimately classless society. Karl Marx understood the industrial revolution as creating an unstable system, that would collapse in a revolution. His ideas have an impact in the industrializing world because it inspired socialist movements and took root in unions.His beliefs lead to union work for better conditions. Marx argued that the Industrial Revolution had polarised the gap between the owners of the means of production and the workers even more. This would change, when the proletariat, developing a class consciousness would rise up and overthrow capitalism.

In 1893 railroad workers created the American Railway Union under the leadership of Eugene V. Debs.

true

Issuing stock to stockholders allows a corporation to raise large amounts of money for pig projects while spreading out the financial risk.

true

The constitution bans states from imposing tariffs, helping goods flow freely around the country.

true

Analyze the above map and describe the importance of coal in the development of the Industrial revolution in the United States.

Coal was very important because it helped fuel furnaces and equipment in factories. It was the best energy source and lasted longer than wood. Without coal, steam engines wouldn't function as well. The development of coal fired steam engines allowed the concentration of industry in the cities and eliminated the dependance on water and wind power.

The ________ changed bobbins without stopping.

Northrop automatic loom

In the above cartoon, the sign under "Domestic goods" reads, "If you buy here you have to pay blood-money to a 'trust.'" The sign under "Imported goods" reads, "If you but here you must pay war duties." explain what circumstances in United States history the cartoon refers to and analyze the intent of the cartoonist.

This cartoon refers to consumers and their choice between free trade and protection or industrial trusts. Uncle Sam represents to imported goods while monopoly represents the domestic goods.

The 1894 Pullman strike was halted by? a. a court order b. federal troops c. The American Railway Union d. the Pullman Company

a. a court order

Which factor leading to industrialization was not influenced by government policies? a. abundant natural resources b. cheap immigrant labor c. high tariffs d. networks of communication and transportation

a. abundant natural resources

One reason for america's industrial success was its a. abundant raw materials b. access to oceans c. small workforce d. wide open spaces

a. abundant raw materials

N.W. Ayer and Son developed bold new formats for a. advertising b. chain stores c. steel companies d. trusts

a. advertising

Workers who tried to organize a union or strike were often fired and placed on a list of "troublemakers" called the a. blacklist b. outlist c. strikelist d. unionist

a. blacklist

According to the chart, government reacted to disgruntled railroad employees in 1877 by a. calling out troops to restore order b. following the wishes of the railroad workers c. issuing a court order d. resolving to raise wages

a. calling out troops to restore order

Loans, mortgages, and taxes are an example of a company's a. fixed costs b. pools c. stock d. vertical integration

a. fixed costs

The invention of ______ enabled longer and heavier trains to travel.

air brakes

People who supported ____ believed that society did not need any government.

anarchism

Which transcontinental railroad operated without government subsidies and was the only one not forced into bankruptcy? a. Central Pacific Railroad b. Great Northern Railroad c. Pennsylvania Railroad d. Union pacific Railroad

b. Great Northern Railroad

What type of business does not produce anything for itself? a. a corporation b. a holding company c. a monopoly d. a stock fund

b. a holding company

According to the graph, when did the production of steel begin to rise significantly in the United States? a. between 1870 and 1875 b. between 1885 and 1895 c. between 1895 and 1900 d. in 1865

b. between 1885 and 1895

According to the concept of laissez-faire, prices and wages are best determined by the a. federal government b. free market c. gross national product d. individual states

b. free market

ANARCHISM: The philosophy of a new social order based on liberty unrestricted by man-made law; the theory that all forms of government rest on violence, and are therefore wrong and harmful, as well as unnecessary.-Emma Goldman According to the above quote, some labor supporters who were anarchists believed that society did not need any a. corporations b. government c. money d. workers

b. government

As the nation was industrializing, Congress used tariffs to a. entice Europeans to buy American products b. help American industries compete with European manufacturers c. raise money to operate the government d. raise the prices that Europeans would pay for American products

b. help American industries compete with European manufacturers

_______ was equally as important as natural resources in the nation's rapid industrialization. a. a new tariff law b. increased population c. new technology d. the political system

b. increased population

By the early 1900's, Americans had transformed the United States into the world's leading a. gross national product b. industrial nation c. laissez-faire country d. military establishment

b. industrial nation

The Great Northern became the most successful transcontinental railroad in part because of a. bribes the company gave to members of Congress b. its founder's good decisions and honest business practices c. its investors' ability to manipulate stock prices d. land grants given to the company by the federal government

b. its founder's good decisions and honest business practices

some railroad investors discovered that they could make more money by a. leaking information b. obtaining and selling government land grants c. selling stock d. trading on margin

b. obtaining and selling government land grants

It made sense for big corporations to continue operating during poor economic times because a. their fixed coasts were small, compared to their operating costs b. their operating costs were small, compared to their fixed costs c. their prices were raised to bring in more money d. their stock provided a continuous source of income

b. their operating costs were small, compared to their fixed costs

What incident occurred in 1886 that badly hurt the Knights of Labor's reputation? a. formation of the American federation of labor b. Great railroad strike c. Haymarket riot d. pullman strike

c. Haymarket riot

Who claimed there would be a workers' revolution in which workers would seize control of the factories and create a socialist society? a. Anarchists b. Knights of Labor c. Marxists d. Pullman Company

c. Marxists

Construction of the Union pacific Railroad pushed west from a. Chicago, Illinois b. Ogden, Utah c. Omaha, Nebraska d. St. Louis, Missouri

c. Omaha, Nebraska

The railroad boom began in 1862 when president Abraham Lincoln signed the a. Gettysburg Address b. Land Grant law c. Pacific Railway Act d. time zone legislation

c. Pacific Railway Act

During the 1800's, companies generally paid women less than men because they believed women a. could live on less money than men b. could not do as much work as men c. had men to support them d. would soon leave to have children

c. had men to support them

Combining many firms engaged in the same type of business into one corporation is called a. a holding company b. a monopoly c. horizontal integration d. vertical integration

c. horizontal integration

The first leader of the American Federation of Labor, samuel Gompers, believed that unions should stay out of a. arbitration b. corporations c. politics d. riots

c. politics

"...the man who owns eight or nine hundred thousand dollars will want a hundred thousand dollars more to make it a million, while the man who has millions will want everything he can lay his hands on and then raise his voice against the poor devil who wants ten cents more a day."-Samuel Gompers Based on this quote, Samuel Gompers a. argued for laissez-faire economics b. supported unregulated capitalism c. tended to support socialist reforms d. wanted everyone to be wealthy

c. tended to support socialist reforms

Which of the following describes how one of the inventions from the timeline would enable factories to produce more goods by extending hours of production? a. the automatic loom allowed factories to produce more woven material b. the ice machine helped workers stay cool in the summer c. the lightbulb made it possible to consistently light work space d. the telephone opened lines of communication between suppliers and factories

c. the lightbulb made it possible to consistently light work space

Railroad companies raised most of the money that they needed to build their railroads from a. hauling freight to market b. private investors c.selling government land grants d. subsidies from tax revenues

c.selling government land grants

"Man must have an idol-the amassing of wealth is one of the worst species of idolatry. To continue much longer overwhelmed by business cares...must degrade me beyond hope of permanent recovery."-Andrew carnegie Based on the quote, which of the following would MOST likely reflect Andrew Carnegie's actions? a. He amassed the largest amount of personal wealth that he could b. He created companies that failed to make any profits c. He did not receive any income from the companies he ran d. He donated much of his money to charitable causes

d. He donated much of his money to charitable cause

The Central Pacific Railroad began as the dream of engineer a. Charley Crocker b. Collis P. Huntington c. Leland Stanford d. Theodore Judah

d. Theodore Judah

What railroad began pushing westward under the direction of engineer Grenville Dodge? a. Central Pacific b. Credit Mobilier c. Southern Railway d. Union Pacific

d. Union Pacific

Economies of scale resulted in a. a wider variety of products b. higher costs and higher prices c. lower costs and higher prices d. lower costs and increased production

d. lower costs and increased production

In the Credit Mobilier scandal, Union Pacific investors got rich by a. accepting bribes from business owners to route railroad tracks through their towns b. achieving a monopoly in hauling freight along their railroad's tracks c. conspiring with other railroads to set high prices d. paying inflated bills from a construction company that they controlled

d. paying inflated bills from a construction company that they controlled

Agreements among companies to keep prices at a certain level were known as a. grants b. holding companies c. monopolies d. pools

d. pools

with new technology, factories could a. produce fewer goods at lower prices b. produce fewer goods at higher prices c. produce more goods at higher prices d. produce more goods at lower prices

d. produce more goods at lower prices

By linking the nation, railroads helped increase the size of markets for a. cities b. homesteaders c. Native Americans d. products

d. products

Supporters of laissez-faire believed the government should interfere in the economy only to a. bring the country out of an economic crisis b. keep prices from rising too much c. protect new domestic businesses from foreign competition d. protect property rights and maintain peace

d. protect property rights and maintain peace

Corporations issue stock to a. allow them to lower prices on their products b. allow them to open factories in rural areas c. create a large business by buying many small businesses d. raise large amounts of money and spread financial risk

d. raise large amounts of money and spread financial risk

A steel company that owns the coal mines, limestone quarries, and iron ore fields it depends on is an example of a. business integration b. capital integration c. stock integration d. vertical integration

d. vertical integration

which of the following choices best describes the diagram? a. holding company b. horizontal integration c. trust company d. vertical integration

d. vertical integration

a business incurs operating costs by paying a. interest on a bank loan b. property taxes on the government c. rent to a landlord d. wages to hourly employees

d. wages to hourly employees

Supporters of free enterprise believed that one reason the United States industrializes so rapidly in the 1800's was because it a. paid high wages b. subsidized industries c. used tariffs d. was a vast free trade area

d. was a vast free trade area

Which group was hurt the most by the Morrill Tariff? a. factory owners b.Northern entrepreneurs c. railroad companies d.Southern farmers

d.Southern farmers

One of the most famous and successful railroad consolidators was _________.

Cornelius vanderbilt

The _____ Railroad was the only railroad that was not eventually forced into bankruptcy.

Great Northern

Prices of many products increased as the United States became an industrial nation.

false

A single company that achieves control of an entire market is a _________.

monopoly

The _______ motive, or hope to make money, attracted people of high ability and ambition into business.

profit

Scandals created the impression that railroad entrepreneurs were_______, or people who looted an industry and gave nothing back.

robber barrons

Department stores began to open up in the 1800's, and changed the idea of shopping by bringing together a huge array of different products in a large, elegant building.

true