AMH 2020 Ch 18 & 19

What does laissez-faire economic policy mean?

• Government doesn’t interfere with economy or businesses
• Government works for the people and not the powerful
• Government provides a fair deal for both businesses and citizens
• Government taxes the wealthy at a higher rate than the poor

Which of the following best describes horizontal integration?

• Buying other companies that do the same thing as yours
• Buying other companies that do/make things you need
• Developing new products that complement your original product
• Building long-term partnerships with your suppliers  

A hamburger fast-food chain purchases cattle ranches & slaughterhouses to reduce production costs

This is an example of:

• Vertical integration

• Horizontal integration

• Market diversification

• Building a monopoly

Which of the following captains of industry (aka “Robber Barons”) was known for being the first to mass-produce steel?

• Andrew Carnegie
• John D. Rockefeller
• J.P. Morgan
• Cornelius Vanderbilt

Which of the following is responsible for building crucial infrastructure, including hotels and railroads, that led to the development of Florida?

• Henry Flagler

• Cornelius Vanderbilt

• Andrew Carnegie

• John Pierpont (JP) Morgan

Which best describes what a monopoly is?

• a situation in which one company is able to dominate/control an entire industry

• a corporation that controls a variety of companies and manages them all as one

• a situation in which one company controls all steps in its production chain/ladder

• a corporation that buys other companies that perform the same function as it does

Social Darwinism is a socio-economic belief that says:

• the most capable people in society always become the most successful

• the wealthy have an obligation to use their excess wealth to help those in need

• the free market is the best way to generate wealth and prosperity for all

• the government has a responsibility to limit the power of large corporations

What type of government economic policy do Social Darwinists agree with?

• laissez-faire

• socialism

• communism

• interventionist

Why did robber barons and Social Darwinists prefer laissez-faire economic policy?

• Because it allows total freedom to compete for profits
• Because it ensures fair competition for all companies
• Because it disallows the existence of monopolies
• Because it emphasizes the wealthy helping those in need

Competition

Survival of the Fittest

Nature

Inequality

Liberty/Freedom

These terms are most commonly associated with which of the following?

• Social Darwinism

• Gospel of Wealth

• Acres of Diamonds

• Vertical Integration