U.S. History - Ch. 12 Industrial Revolution L3 RE

What is the primary reason large corporations could produce goods more efficiently after the Civil War?

• They had exclusive access to raw materials.

• They combined business functions and used new production techniques.

• They solely relied on manual labor.

• They operated only in urban areas.

What legal entity made it possible for big businesses to be treated as a single person?

• Sole proprietorship

• Partnership

• Corporation

• Cooperative

How did economies of scale benefit large corporations in the late 1800s?

• By increasing the cost of goods sold

• By reducing the need for skilled labor

• By lowering the cost of manufacturing through mass production

• By limiting the variety of products offered

What strategy did big corporations use to stay open during economic downturns?

• They increased prices significantly.

• They cut prices to increase sales.

• They stopped production completely.

• They only sold to foreign markets.

What type of costs are fixed costs for a business?

• Costs that vary depending on production levels

• Costs incurred only during high sales periods

• Costs that a company pays even if it is not operating

• Costs associated with employee training only

What was one of the main reasons why business leaders in the late 19th century organized pools?

• To increase competition among industries

• To fix prices and control market share

• To promote laissez-faire economic policies

• To support government regulations on competition

What is vertical integration, as demonstrated by Andrew Carnegie's management of the steel industry?

• A strategy where a company buys out its suppliers to control raw materials and transportation

• A method of merging with competitors to monopolize a market

• A business tactic to solely invest in the stock market

• A policy to reduce the number of employees in a company

By 1880, what percentage of the oil industry did John D. Rockefeller's Standard Oil control?

• About 50%

• About 75%

• About 90%

• About 100%

What does the term "monopoly" refer to in the context of business practices?

• A strategy where multiple companies share control of a market

• When a single company achieves control of an entire market

• A government-led initiative to regulate industry prices

• A collaborative agreement between companies to boost innovation

What was one of the main reasons many Americans feared monopolies during the period of industrialization from 1865-1901?

• They believed monopolies would lead to lower product quality.

• They thought monopolies could charge whatever they wanted for products.

• They were concerned monopolies would limit technological innovation.

• They feared monopolies would lead to a decrease in employment.