Questions and Answers
What are Operating Costs?
Wages, shipping charges, and supplies.
What is a Trade Union?
Iron Molders International Union.
What is an Industrial Union?
Knights of Labor.
What did the Pacific Railway Act do?
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What are Fixed Costs?
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What is the Northrop Automatic Loom known for?
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What did Air Brakes enable?
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What are Holding Companies?
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What does Laissez-faire mean?
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What does a Trust do?
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Why was petroleum in high demand even before the invention of the automobile?
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Laissez-faire relies on _________ to regulate prices and wages.
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Why did many members of Congress believe tariffs were necessary during the early days of industrialization?
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What did Economies of scale result in?
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What was the purpose of the government offering land to railroad companies?
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From where did the Central Pacific railroad hire workers due to a shortage in California?
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How did railroad companies raise most of the money they needed?
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How can corporations achieve economies of scale?
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Which term completes the diagram related to companies' organizational structure?
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Why did workers' buying power generally increase in the late 1800s?
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Who was Thomas Alva?
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Who was Jay Gould?
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What famous quote is attributed to Alexander Graham Bell?
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What did Karl Marx state about capitalism?
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What was Cornelius Vanderbilt known for?
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What is John D. Rockefeller best known for?
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Who drilled the first oil well?
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What did Andrew Carnegie do?
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Who was Eugene V. Debs?
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What organization did Samuel Gompers help found?
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What did supporters of laissez-faire believe about government intervention?
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What did measurements taken of Union soldiers during the Civil War lead to?
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Which two railroads built the transcontinental railroad?
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What did the American Railway Association do in 1883 to improve rail service reliability?
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How did Union Pacific investors get rich in the Credit Mobilier scandal?
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Why did it make sense for big corporations to continue operating during poor economic times?
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How did department stores change the idea of shopping?
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What is a Lockout in the context of labor unions?
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Study Notes
Key Terms and Concepts
- Operating Costs: Includes expenses such as wages, shipping charges, and supplies.
- Trade Union: Organizations like the Iron Molders International Union advocating for workers' rights.
- Industrial Union: Broad groups representing all workers in an industry, exemplified by the Knights of Labor.
- Pacific Railway Act: Legislation that initiated the railroad construction boom in the U.S.
- Fixed Cost: Regular expenses like loans, mortgages, and taxes that do not fluctuate with production levels.
Innovations and Technologies
- Northrop Automatic Loom: Revolutionized textile production by changing bobbins without stopping.
- Air Brakes: Enhanced train capabilities, allowing for longer and heavier trains.
Business Structures
- Holding Companies: Corporations that maintain ownership over stocks of various companies producing goods.
- Trust: A legal arrangement managing property and resources for others.
Economic Principles
- Laissez-faire: Economic philosophy advocating minimal government intervention, relying on supply and demand to regulate prices and wages.
- Economies of Scale: Achieved when corporations invest in more machines and larger facilities, resulting in lower prices and costs.
Historical Context
- Petroleum Demand: Even before automobiles, oil was sought after for its ability to be converted into kerosene.
- Early Tariffs: Congress believed tariffs were necessary to support new American industries against established European factories.
Transportation Development
- Transcontinental Railroad: Built primarily by the Union Pacific and Central Pacific railroads, facilitated by land grants from the government.
- California Workforce: The Central Pacific railroad addressed labor shortages by hiring workers from China.
- Standard Time Zones: Established by the American Railway Association in 1883 to improve railway service reliability and prevent accidents.
Major Figures in Industrialization
- Thomas Edison: Established the Menlo Park laboratory, innovating various technologies.
- Jay Gould: Notorious for engaging in insider trading practices.
- Alexander Graham Bell: Credited with inventing the telephone with the famous words "Come here Watson, I want you."
- Karl Marx: Described capitalism as driven by class struggles between workers and owners.
- Cornelius Vanderbilt: Known for creating the first direct rail service from New York City to Chicago.
- John D. Rockefeller: Founder of Standard Oil, a major player in the oil industry.
- Edwin Drake: Famous for drilling the first oil well in the U.S.
- Andrew Carnegie: Key figure in the steel industry, establishing a major company in Pittsburgh.
- Eugene V. Debs: Known for leading the American Railway Union.
- Samuel Gompers: Founder of the American Federation of Labor, advocating for organized labor.
Labor Relations
- Laissez-faire Supporters: Advocated for minimal government intervention with the intent to protect property rights and maintain peace.
- Lockout Tactic: A strategy used by companies against unions, preventing workers from accessing their jobs and withholding wages.
Consumer Culture
- Department Stores: Transformed shopping by offering a diverse range of products under one roof in an appealing environment.
Economic Strategies
- Credit Mobilier Scandal: Union Pacific investors manipulated finances to gain a monopoly on freight transportation.
- Corporate Resilience: Large corporations continued operations during economic downturns by maintaining efficient production and lowering prices to boost sales.
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Description
This quiz covers key concepts from Chapter 9 of a business curriculum. Test your knowledge on operating costs, trade unions, and significant historical acts like the Pacific Railway Act. Use these flashcards to reinforce your understanding and prepare for exams.