Ch. 3 Test Review

Laissez-faire relies on ____ to regulate prices and wages.

• businesses

• government

• the GNP

• a free market

During the early days of industrialization, many members of Congress believed that tariffs were necessary to

• raise money to run the government.

• protect new industries from foreign competition.

• increase the prices that Europeans paid for American products.

• entice European consumers to buy American goods.

Even before the invention of the automobile, petroleum was in high demand because it could

• lubricate moving parts in a machine.

• be made into plastics.

• be turned into kerosene.

• power locomotives.

In the Crédit Mobilier scandal, Union Pacific investors got rich by

• accepting bribes from business owners to route railroad tracks through their towns.

• achieving a monopoly in hauling freight along their railroad’s tracks.

• paying inflated bills from a construction company that they controlled.

• conspiring with other railroads to set high prices.

In the late 1800s, workers’ buying power generally increased because

• factories often increased wages.

• wages increased faster than prices.

• prices fell faster than wages.

• factories often increased prices.

The two railroads that built the transcontinental railroad were the

• Southern Railway and Union Pacific.

• Southern Railway and Great Northern.

• Union Pacific and Great Northern.

• Union Pacific and Central Pacific.

Department stores changed the idea of shopping by

• locating in rural areas.

• offering low prices instead of elaborate service.

• bringing together a huge array of different products.

• coming together to form shopping malls.

What is one advantage that big corporations had over small businesses?

• They could produce goods more cheaply and efficiently.

• They had higher operating costs.

• Their products were more expensive.

• They were funded by the federal government.

The American Federation of Labor pushed for closed shops, meaning that companies

• would not hire African Americans.

• could only hire union workers.

• would agree to collective bargaining.

• could not try to prevent strikes.

The total value of all goods and services that a country produces is its

• gross national product.

• supply of natural resources.

• economy of scale.

• distribution chain.