Lesson Quiz: Industry and Corporations

Which was the most significant effect of the Bessemer process?

• It allowed the production of more steel.

• It produced better steel.

    

• It made steel cheaper.

• It allowed factory production of steel.

Other big businesses followed as entrepreneurs, industrialists, and bankers found new ways to increase economic (a)   and the output of goods.

Which was the primary goal of the Standard Oil Company when it decreased its prices?

• to sell stock to investors

• to outcompete rival businesses

•   to form a monopoly

• to pass on lower costs to customers

Which fact is the cause for the principle of scarcity?

• There is a limited supply of resources.

•    Some people are poorer than others.

   

• People always want to buy more.

   

•   People always want to make more money.

By increasing output, big factories were able to earn greater (a)   or income earned from a business after covering costs.

Which of these would most likely occur under a free market?

• Government regulators set maximum prices.

•    Political influence determines what products are made.

•   An appointed agency decides where businesses can operate

   

•   Individual business owners set prices to compete for business.

Criticizers of the Sherman Antitrust Act argued that _______.

• with lower production costs, less labor was needed.

• competition between businesses results in an economic balance.

• big business would ultimately lead to a higher standard of living.

•   trusts create an unfair division between the wealthy and the poor.

Some Americans charged that the leaders of big corporations were abusing ____. Under____, businesses are owned by private citizens.

(a)  

TRUE or FALSE: A principle known as scarcity is when there is a limited supply of resources.

• TRUE

• FALSE

Other companies gave investors (a)   , or partial ownership of the company, in return for capital.