TX Boom/Bust

What is free enterprise/free market economy?

• A. A market where samples are given away for free and money is never exchanged.

• B. An economic system that is created where products, prices, and services are determined by the market, not the government.

• C. An economic system that is highly regulated by the government.

• D. A unique shopping experience where all items are bartered or traded.

If an item or service is in DEMAND, what happens to the supply?

• It decreases.

• It is not affected by the change in demand.

• It stays the same.

• It increases.

What right does a seller or business have in a free market system when demand for a product goes up?

• In a free market system, there is no rent charge so businesses can sell items cheaper.

• The seller has the right to adjust the prices up to match the demand of the product.

• Prices are regulated in a free market system and cannot be altered by the owner of a business.

• Demand has nothing to do with pricing in a free market system.

If the SUPPLY of a product is overproduced, how does this usually affect the DEMAND?

• Demand goes up

• Demand goes down

• Demand stays the same

• Demand is not related to supply

If the SUPPLY of a product is overproduced, how does this usually affect the PRICE?

• Price goes up

• Price goes down

• Price stays the same

• Price is not related to supply

What new farm machinery contributed to the commercial cotton farming boom?

• Horse-drawn plows, steam-powered threshers, & tractors

• Cotton gins and water-powered looms

• Mechanical seeders and combine harvesters

• Electric irrigation systems and robotic pickers

What was one of the effects of the railroad expansion on commercial cotton farming?

• Increased cost for shipping cotton

• Reduced rates for shipping cotton

• Decreased speed of cotton distribution

• Limited access to new markets

What was a direct effect of the over-supply of cotton during the commercial cotton farming boom?

• Increase in the value of cotton

• Stable cotton prices

• Steep drop in cotton prices

• Higher demand for cotton

How did the commercial cotton farming boom affect Texas cotton farmers?

• It decreased the cost of farmland

• It led to hardships due to increased farmland prices

• It reduced the number of tenant farmers

• It decreased the production of cotton

What was the impact of the commercial cotton farming boom on the workforce in Texas?

• Decreased the number of tenant farmers and sharecroppers

• Increased the number of factory workers

• Increased the number of tenant farmers and sharecroppers

• Reduced the overall workforce in agriculture