The Gilded Age SSUSH11

Why did the existence of monopolies force the federal government to begin regulating businesses?

• To prevent monopolies from influencing the federal government i.e. corruption

• To promote monopolies and increase competition
• To encourage monopolies to harm consumers
• To allow monopolies to control the market without restrictions

Answer explanation

Business owners sought to buy up smaller competitors or force them out of the market to create monopolies. This gave the business owners great power due to their wealth, which they used to affect the political process. In response, the federal government became more involved in regulating the economy through measures such as the Sherman Antitrust Act.

What led to the development of labor unions in the 1800s?

• Poor working conditions, low wages, long hours, and lack of job security
• High wages and job security
• Short working hours and good conditions
• Government support and employee benefits

Answer explanation

Corporations often exploited workers during this period, forcing them to work long hours for low pay and in dangerous conditions. Workers formed labor unions to improve their leverage in negotiations with business owners and improved working conditions.

With the increase in industrialization in the United States during the 1800s, what demographic (a particular sector of a population) grew significantly?

• Immigrant population in cities

• Indigenous American population

• Ex-pat population

• Rural population

Answer explanation

Industrialization in the late 1800s created significant demand for labor, leading to a massive influx of immigrants seeking to take advantage of these job opportunities in urban areas of the country.

What is the artist trying to show regarding the impact of industrialization with regards to J.D. Rockefeller's Standard Oil Company?

• Neutral impact of industrialization with no significant effects on the economy
• Negative impact of industrialization through philanthropic efforts and charitable donations
• Positive impact of industrialization through fair competition and ethical business practices
• Negative impact of industrialization on the economy through monopiles, trusts, and ruthless business tactics

Answer explanation

Laissez-faire policies during this era, intended to encourage economic growth and development, led to the formation of monopolies and trusts. The artist depicts the Standard Oil Company, a powerful monopoly, as an octopus who has ensnared in its tentacles major industries as well as symbols of the American government. The concentration of economic power enabled entities such as Standard Oil to wield considerable influence.

How did Andrew Carnegie grow his business, Carnegie Steel, to such success?

• Outsourcing all operations, ignoring technological advancements, and overspending on marketing
• Horizontal integration, divesting from new technologies, and focusing on high costs
• Diversifying into unrelated industries, neglecting cost efficiency, and reducing productivity
• Vertical integration: removing all competition, and buying his suppliers

Answer explanation

By controlling his suppliers and eliminating his competition, Carnegie achieved a near monopoly of the industry.

Why did John D. Rockefeller, the head of Standard Oil Company, sometimes lower the price of oil?

• To promote fair competition in the market
• To support small businesses in the industry
• To increase the quality of the oil products
• To drive competitors out of business and gain a monopoly.

What impact did Thomas Edison's lightbulb have on factory workers?

• Decreased efficiency and technological stagnation
• Led to a decrease in wages and job loss
• Caused health hazards and safety concerns
• Increased productivity as it was safer to work at night but also increased the hours workers were made to work

What immigration station was opened off of the coast of New York City in 1882?

• Liberty Island
• Angel Island
• Alcatraz Island
• Ellis Island

What industry became wildly successful due to the expansion of railroads?

• Automobile industry
• Textile industry
• Oil industry
• Steel industry

What natural resource did the railway industry need to function, causing this natural resource to become the first true monopoly in the US?

• Cotton
• Steel
• Coal
• Oil