Industry, Labor Unions and New Technologies

What was the technique used to create cheaper steel?

• Vertical Integration

• monopolies

• Bessemer process

• trusts

In addition to making steel cheap, what was another outcome of the new way to make steel?

• it could be made in factories

• steel could be used for weapons for the first time

• steel was better quality

• steel could not be used for construction

What is the basis for the principle of scarcity?

• People want to make more money

• There is always a high demand for goods

• There is a limited supply of resources

• Every society has a class system where some live in poverty

Why do people decide to buy stock in a corporation?

• to split the risk with the corporation

• to receive dividends

• to avoid paying tax

• to take over the company

In a free market economy who sets prices and wages?

• Congress

• individual business owners

• the state governments

• investors

What law was passed to regulate trusts?

• Anti-Monopolies Act

• Sherman Antitrust Act

Critics of the Sherman Antitrust Act argued that

• trusts created a division between the rich and poor

• trusts reduced employment opportunities

• trusts created big businesses that led to a higher standard of living

• trusts worked with governments to pass reforms

Match the following

• monopoly

• a group of corporations run by a single board of directors

• capitalism

• a business that is owned by investors

• trust

• units of ownership of a company

• stock

• controls all or nearly all the business of an industry

• corporation

• businesses are owned by private citizens

Why did Standard Oil lower its prices?

• to outcompete with rival businesses

• to improve the quality of oil

• to help customers

• to gain public support

What economic practice helps companies to keep prices LOW and improve QUALITY?

• consolidation

• assembly lines

• demand

• competition