American Studies 2 Industry Flashcards
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Questions and Answers

What is the control of the production of a product by a single person or company?

  • Oligopolies
  • Monopolies (correct)
  • Trusts
  • Partnerships

    • What term refers to setting prices as high as people could afford to pay?

  • Price Collusion
  • Price Skimming
  • Price Gouging
  • Price Fixing (correct)

    • What is the control of many corporations by one person or a few people called?

    Trustees

    What are firms or corporations that combine to reduce competition and control prices called?

    <p>Trusts</p> Signup and view all the answers

    In which industries did trusts gain monopolies?

    <p>Oil, steel, sugar, and whiskey</p> Signup and view all the answers

    What law made it illegal to form monopolies and trusts that restrained trade?

    <p>Sherman Anti-Trust Act (1890)</p> Signup and view all the answers

    The court decided monopoly was only illegal if it involved restraint of in-state trade.

    <p>False</p> Signup and view all the answers

    Who controlled almost all of the country's oil refining business?

    <p>John D Rockefeller</p> Signup and view all the answers

    Rockefeller was ruthless in gaining/taking over competing companies and forced railroads to give him special rates.

    <p>True</p> Signup and view all the answers

    What is a business that grows and expands to control most of the market in the same industry by buying out its competitors called?

    <p>Horizontal Integration</p> Signup and view all the answers

    Who was the Scottish immigrant who arrived in America at 13 and became a significant figure in the railroad industry?

    <p>Andrew Carnegie</p> Signup and view all the answers

    Who worked in a cotton mill for $1.20 a week and later bought out the PA railroad?

    <p>Andrew Carnegie</p> Signup and view all the answers

    Carnegie entered the steel industry after becoming rich from the railroad industry and controlled most steel production by the 1900s.

    <p>True</p> Signup and view all the answers

    Carnegie sold his steel company to ______ for ______.

    <p>J.P. Morgan, $447 million</p> Signup and view all the answers

    Who suffered the most due to the industrial practices during this time?

    <p>The working class of people</p> Signup and view all the answers

    What challenges did workers face during this period?

    <p>No safety standards, low wages, and no sick leaves or compensation for injuries.</p> Signup and view all the answers

    Who was the banker that bought out Andrew Carnegie's business?

    <p>JP Morgan</p> Signup and view all the answers

    How did Carnegie typically treat his workers?

    <p>He gave smaller wages and less job security.</p> Signup and view all the answers

    How did Rockefeller treat his workers?

    <p>His employees were underpaid and worked in poor conditions.</p> Signup and view all the answers

    Who was Cornelius Vanderbilt?

    <p>He participated in the Railroad industry and started transportation and trade service.</p> Signup and view all the answers

    How did Vanderbilt treat his workers?

    <p>They worked long hours for little pay and faced labor strikes.</p> Signup and view all the answers

    How did JP Morgan treat his workers?

    <p>He treated them better than others and supported their rights.</p> Signup and view all the answers

    How did Rockefeller spend his wealth?

    <p>He bought out his competition and negotiated with railroad companies.</p> Signup and view all the answers

    How did Vanderbilt spend his money?

    <p>He invested in profitable ventures, owned mansions, and bought real estate.</p> Signup and view all the answers

    How did Morgan spend his money?

    <p>He bought parts of the steel business and collected art.</p> Signup and view all the answers

    How did Carnegie donate his money?

    <p>He donated to music halls, educational grants, and libraries.</p> Signup and view all the answers

    How did Rockefeller donate his money?

    <p>He donated to churches and charities.</p> Signup and view all the answers

    How did Vanderbilt donate his money?

    <p>He donated $50,000 to a church and over $1 million to a university.</p> Signup and view all the answers

    How did Morgan donate his money?

    <p>He donated books to libraries and art to museums.</p> Signup and view all the answers

    Was Carnegie a Robber Baron or Captain of Industry?

    <p>False</p> Signup and view all the answers

    Was Rockefeller a Robber Baron or Captain of Industry?

    <p>False</p> Signup and view all the answers

    Was Vanderbilt a Robber Baron or Captain of Industry?

    <p>False</p> Signup and view all the answers

    Was Morgan a Robber Baron or Captain of Industry?

    <p>False</p> Signup and view all the answers

    What is the practice where a single entity controls the entire process of a product, from raw materials to distribution?

    <p>Vertical Integration</p> Signup and view all the answers

    Study Notes

    Monopolies and Trusts

    • Monopolies involve one company or individual controlling the production of a product.
    • Price fixing refers to setting prices at the maximum consumers are willing to pay.
    • Trustees are individuals or groups controlling multiple corporations.
    • Trusts collude to reduce competition and manipulate prices, often leading to monopolies.
    • Key industries for monopolies: oil, steel, sugar, and whiskey.

    Legislation

    • The Sherman Anti-Trust Act (1890) classified monopolies and trusts as conspiracies against trade, making contracts leading to trusts illegal.
    • Monopoly laws applied to interstate trade, not just intrastate.

    Key Figures

    • John D. Rockefeller dominated U.S. oil refining, efficiently lowering costs and increasing prices, while using ruthless tactics to eliminate competition.
    • Andrew Carnegie, a Scottish immigrant, transitioned from a telegraph operator to a major steel magnate, controlling global steel production by the early 1900s.
    • J.P. Morgan, a banker, acquired Carnegie's steel company for $447 million and invested in the transcontinental railroad.

    Labor Conditions

    • The working class endured long hours (11-14 a week), low wages (averaging $500 per year), and poor working conditions without benefits.
    • Child labor was prevalent, with children as young as six working in factories.

    Treatment of Workers

    • Carnegie cut wages and job security for workers to minimize costs.
    • Rockefeller’s workers faced underpayment and hazardous conditions.
    • Vanderbilt's workers received low wages for extended hours, with conflicts leading to strikes.
    • Morgan, compared to others, provided better treatment, securing a 10% raise during the Anthracite coal strike.

    Philanthropy and Spending

    • Rockefeller donated to charities, churches, and created Rockefeller Center in New York.
    • Carnegie's legacy includes music halls, educational grants, and around 3,000 libraries, totaling over $350 million in donations by his death.
    • Vanderbilt invested in steel boats, real estate, and education, with notable donations including over $1 million to a university.
    • J.P. Morgan shared his wealth through art donations to museums and books to libraries.

    Industrialist Categorization

    • Carnegie is viewed as a Robber Baron, having maintained ruthless business practices before turning to philanthropy.
    • Rockefeller is similarly classified as a Robber Baron, having exploited workers and manipulated markets.
    • Vanderbilt is categorized as a Robber Baron due to prioritizing profit over worker welfare.
    • J.P. Morgan is considered a Captain of Industry for kinder treatment of workers and substantial charitable contributions.

    Business Practices

    • Horizontal Integration involves expanding a business by acquiring competitors in the same industry.
    • Vertical Integration refers to controlling all stages of production, from raw materials to distribution.

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    Description

    Test your knowledge on key terms related to industry in American Studies. This quiz covers essential concepts such as monopolies, price fixing, and trustees. Perfect for students looking to reinforce their understanding of economic control in America.

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