Effects of the Civil War and Market Dynamics

What term is used to describe a market with competition?

• Monopoly

• Free enterprise

• Trust

• Industrialization

What happens when there is competition in capitalism?

• Prices increase

• Consumers suffer

• It works well for the consumer

• Monopolies form

What is the term for a business arrangement like those formed by J.P. Morgan and John D. Rockefeller?

• Competition

• Trusts

• Free enterprise

• Market economy

What is the main disadvantage for consumers when a monopoly exists?

• More choices

• Higher prices

• Better quality

• Increased competition

What does the term "industrialization" refer to in the context of the document?

• The decline of industries

• The creation of new ideas and industries

• The end of the Civil War

• The reduction of military supplies

What is the cost of a glass of soda for the seller in the example?

• 10 cents

• 25 cents

• 50 cents

• 75 cents

What is the role of a consumer in a market economy?

• To create monopolies

• To benefit from competition

• To set prices

• To form trusts

Why did Americans not want monopolies or trusts?

• They were too efficient

• They limited individual rights

• They were too small

• They were too innovative

What did former President Rutherford B. Hayes question about monopolies?

• Their efficiency

• Their legality

• Their will replacing the government

• Their innovation

What did the Sherman Antitrust Act aim to do?

• Support monopolies

• Make business responsible to the public

• Increase government control

• Eliminate small businesses