Unit 6 Quiz 3
This term is used to refer to a type of business organization created in the 19th century that was meant to eventually produce a monopoly. a) trust b) cartel c) laissez-faire d) pure competition
a) trust John D. Rockefeller is synonymous with the business term "trust". By buying out both the companies that competed against his company Standard Oil and those who supplied Standard Oil with productive resources, he effectively killed any competition against him for decades. This is now legally prevented by US law and Supreme Court decisions in the past century.
https://www.usatestprep.com/modules/gallery/files/49/4945/4945.jpg Which labeled area was home to the growing meat-packing industry of the late-1800s? a) A b) B c) C d) D
b) B Chicago became a major player in the meat-packing industry of the late-1800s, so B is the correct region. Thanks to the ever-increasing railroad lines on the western side of the country, Chicago was the destination of choice for much of the beef that was being raised in the American west.
https://www.usatestprep.com/modules/gallery/files/19/1962/1962.jpg In the 19th century, John D. Rockefeller was MOST associated with the company named _______ a) U.S. Steel b) Standard Oil c) General Motors Corporation d) American Telephone and Telegraph
b) Standard Oil John D. Rockefeller began the Standard Oil corporation in the 1870s. It became one of the most powerful companies- and monopolies- in the history of the world.
Which is the BEST description of the impact of capitalism and industrialization on the American public during the Gilded Age? a) During the Gilded Age, the South was still reeling from reconstruction and lacked economic stability and infrastructure b) With new conveniences, reasonably priced consumer goods, and relatively steady pay, Americans were better off than most of the world c) Because of the rise of monopolies during the Gilded Age, the American economy underwent periods of recession and depression that did not end until 1918 d) In the post-Civil War period, corporations became larger and more powerful through mergers and monopolies and had a greater influence on American politics
b) With new conveniences, reasonably priced consumer goods, and relatively steady pay, Americans were better off than most of the world During the Gilded Age, capitalism and industrialization meant that with new conveniences, reasonably priced consumer goods, and relatively steady pay, Americans were better off than most of the world.
Which of these had the LARGEST impact on the growth of eastern American cities in the late nineteenth century? a) decreased immigration b) low-cost urban housing c) improved farming techniques d) expansion of the interstate system
b) low-cost urban housing The availability of low-cost urban housing provided the growing number of workers- both from inside the U.S. and from foreign lands- a place to live. Do not think that these were nice houses: many of them were squalid, disease-infested tenements that made people sick. However, they were abundant, and located in an areas where people could find work and hopefully pursue the "American dream."
John D. Rockefeller was MOST affected by which of these? a) the Thirteenth Amendment b) the Sherman Antitrust Act c) the writings of Upton Sinclair d) the Supreme Court ruling in Gibbons v. Ogden
b) the Sherman Antitrust Act John D Rockefeller was affected by the Sherman Antitrust Act of 1890. This act established that the federal government could investigate businesses that they deemed to be anitcompetitive. John D. Rockefeller and his Standard Oil Company were indicted by the Commonwealth of Pennsylvania for monopolizing trade.
One of the main reasons John D. Rockefeller was able to succeed in the oil industry was because he a) encouraged competition b) treated his competitors fairly c) combined vertical and horizontal integration d) urged government regulation of the oil industry
c) combined vertical and horizontal integration Before he was the primary inspiration for The Simpsons character "C. Montgomery Burns", Rockefeller was the founder of Standard Oil. To solidify his grip on the oil industry, he combined vertical and horizontal integration, buying out businesses that supplied his company and businesses that competed against him.
John D. Rockefeller was able to monopolize the oil market, due to a) driving out or buying other oil industries; hiring only immigrants and former slaves, so he was able to pay workers far less money; received large investments from wealthy Americans that allowed him to excel quicker b) vertical consolidation- buying/driving out all other oil companies and/or entrepreneurs and horizontal consolidation- buying into all other industries needed to minimize costs, maximize profits, and dominate the oil market c) horizontal consolidation- buying/driving out all other oil companies and/or entrepreneurs and vertical consolidation- buying into all other industries needed to minimize costs, maximize profits, and dominate the oil market d) driving out or buying other oil industries; hiring only immigrants and former slaves, so he was able to pay workers far less money; invested money into the campaigns of major political leaders to avoid strict business laws
c) horizontal consolidation- buying/driving out all other oil companies and/or entrepreneurs and vertical consolidation- buying into all other industries needed to minimize costs, maximize profits, and dominate the oil market John D. Rockefeller was able to monopolize the oil market, due to horizontal consolidation- buying/driving out all other oil companies and/or entrepreneurs and vertical consolidation- buying into all other industries needed to minimize costs, maximize profits, and dominate the oil market. This is different from vertical integration, which involved owning businesses that are involved in making a final, finished good, also to lower lower costs associated with production.
By creating monopolies and establishing trusts, industrial leaders of the late 1800s a) caused the Panic of 1893 b) secured passage of the Sixteenth Amendment c) were able to accumulate vast amounts of wealth d) secured the election of William McKinley as president in 1897
c) were able to accumulate vast amounts of wealth By creating monopolies and establishing trusts, industrial leaders of the late 1800s were able to accumulate vast amounts of wealth. This time period saw the greatest economic growth in American history, but the vast majority of the profit that was generated stayed in the pockets of men like J.P. Morgan, John D. Rockefeller, and Andrew Carnegie.
The Interstate Commerce Act and the Sherman Anti-Trust Act both proved what role upon business and the economy? a) Both created price controls for the industry b) Both outlawed pricing controls for the industry c) Both created strong governmental regulations for dealing with corrupt business practices d) Both proved to be ineffective in the regulation of business abuses and economic controls
d) Both proved to be ineffective in the regulation of business abuses and economic controls Both proved to be ineffective in the regulation of business abuses and economic controls. As industry giants grew within the American economy, people didn't know if they wanted government control or not. It would take years to decide.
How did corporations become stronger during the Gilded Age? a) Many corporations began to invest their money in charitable organizations b) Many corporations began to ignore US politics, and look for foreign intervention c) Many corporations stayed independent and invested all of their earned money back into themselves d) Many corporations teamed up with other corporations to create monopolies, which often controlled the industry
d) Many corporations teamed up with other corporations to create monopolies, which often controlled the industry Corporations during the Gilded Age become stronger by teaming up with other corporations to create monopolies, which often controlled the industry. A monopoly controls the supply of a good or service.
What was a conclusion of the Depression of 1893? a) The Populists grew their following of the urban working classes b) The federal government adopted a silver as a standard of currency c) Both the Democrats and Republicans rallied around a strong economy d) New attitudes grew in society towards poverty and government responsibility emerged
d) New attitudes grew in society towards poverty and government responsibility emerged New attitudes grew in society towards poverty and government responsibility emerged. People realized that a safety net should be provided for those in society who needed help.
How did the rise in the standard of living and new technologies affect women in the United States in the early 1900s? a) Women became nearly equal to men in the workplace, finding employment in many different fields and maintained duties at home b) Many women became free spirited, moved away from home at younger ages, and were publicly against marriage and child-bearing c) Women experienced very little change or increased equality, except the household responsibilities took less time, given the new products that were manufactured d) With new products available, household responsibilities were done in a faster and more effect manner, so some women got jobs outside the home, such as clerical work
d) With new products available, household responsibilities were done in a faster and more effect manner, so some women got jobs outside the home, such as clerical work While women completed home tasks more-efficiently and gained opportunities for employment outside of the home, they were paid substantially less than men and still were not close to full social equality.
Which one of the following descriptions best describes "horizontal integration"? a) the economic development of the American west b) when the government controls the factors of production c) a company owns all the businesses that supply it with raw goods d) a company acquires competing businesses and merges them into a single entity
d) a company acquires competing businesses and merges them into a single entity Many modern businesses, like Disney and The Gap, practice "horizontal integration" which is when a company acquires competing businesses and merges them into a single entity This was also common in the American west of the 19th century when bigger business "bought out" the competition.
How did American industrial leaders accumulate wealth during the late 1800s? a) by inventing new technology b) by developing new farming techniques c) by using mainly slave or forced labor d) by creating monopolies and establishing trusts
d) by creating monopolies and establishing trusts Wealthy industrialists amassed great wealth NOT by working collaboratively with unions and other businesses but by creating monopolies and establishing trusts. These large businesses drove out the competition and had the entire market for themselves. Slavery was illegal by the late 19th century.
Andrew Carnegie and J.P. Morgan both were "captains" of which industry? a) automobile b) communications c) oil d) steel
d) steel Carnegie and Morgan made their fortunes in steel. Morgan eventually bought out Carnegie to form U.S. Steel in 1901.
According to the "Gospel of Wealth" supported by Andrew Carnegie a) the government should play a major role in controlling the American economy b) a graduated income tax is needed to reduce the gap between the richest and poorest members of society c) the wealth and resources in a society should be equitably distributed among the members of that society d) the accumulation of wealth is beneficial to society and the government should take no action to hinder this accumulation
d) the accumulation of wealth is beneficial to society and the government should take no action to hinder this accumulation Those who believe in The Gospel of Wealth hold that the accumulation of wealth is beneficial to society and the government should take no action to hinder this accumulation. According to the Gospel of Wealth, the rich are trustees of their money and it is wrong for the government to interfere with the rightful ownership of wealth gained through hard work and entrepreneurship.
