Business Chapter 9 Test Flashcards

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?

Began the railroad boom. Signup and view all the answers

What are Fixed Costs?

Loans, mortgages, and taxes. Signup and view all the answers

What is the Northrop Automatic Loom known for?

Changed bobbins without stopping. Signup and view all the answers

What did Air Brakes enable?

Longer and heavier trains. Signup and view all the answers

What are Holding Companies?

Own stock of companies that produce goods. Signup and view all the answers

What does Laissez-faire mean?

Let people do as they choose. Signup and view all the answers

What does a Trust do?

Manages property for others. Signup and view all the answers

Why was petroleum in high demand even before the invention of the automobile?

It could be turned into kerosene. Signup and view all the answers

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

Supply and demand. Signup and view all the answers

Why did many members of Congress believe tariffs were necessary during the early days of industrialization?

To help new American industries compete with large established European factories. Signup and view all the answers

What did Economies of scale result in?

Lower prices and lower costs. Signup and view all the answers

What was the purpose of the government offering land to railroad companies?

To encourage rapid construction of tracks. Signup and view all the answers

From where did the Central Pacific railroad hire workers due to a shortage in California?

China. Signup and view all the answers

How did railroad companies raise most of the money they needed?

By selling government land grants. Signup and view all the answers

How can corporations achieve economies of scale?

By investing in more machines and large manufacturing facilities. Signup and view all the answers

Which term completes the diagram related to companies' organizational structure?

Vertical integration. Signup and view all the answers

Why did workers' buying power generally increase in the late 1800s?

Wages increased faster than prices. Signup and view all the answers

Who was Thomas Alva?

He set up Menlo Park. Signup and view all the answers

Who was Jay Gould?

He practiced 'insider trading.' Signup and view all the answers

What famous quote is attributed to Alexander Graham Bell?

'Come here Watson, I want you.' Signup and view all the answers

What did Karl Marx state about capitalism?

'The basic force shaping capitalism is the class struggle between workers and owners.' Signup and view all the answers

What was Cornelius Vanderbilt known for?

He began the first direct rail service from New York City to Chicago. Signup and view all the answers

What is John D. Rockefeller best known for?

Standard Oil. Signup and view all the answers

Who drilled the first oil well?

Edwin Drake. Signup and view all the answers

What did Andrew Carnegie do?

Founded a steel company in Pittsburgh. Signup and view all the answers

Who was Eugene V. Debs?

He was associated with the American Railway Union. Signup and view all the answers

What organization did Samuel Gompers help found?

American Federation of Labor. Signup and view all the answers

What did supporters of laissez-faire believe about government intervention?

The government should interfere in the economy only to protect property rights and maintain peace. Signup and view all the answers

What did measurements taken of Union soldiers during the Civil War lead to?

The development of ready-made clothes. Signup and view all the answers

Which two railroads built the transcontinental railroad?

Union Pacific and Central Pacific. Signup and view all the answers

What did the American Railway Association do in 1883 to improve rail service reliability?

Established standard time zones across the US. Signup and view all the answers

How did Union Pacific investors get rich in the Credit Mobilier scandal?

By achieving monopoly in hauling freight along their railroad's tracks. Signup and view all the answers

Why did it make sense for big corporations to continue operating during poor economic times?

They could produce goods more cheaply and efficiently and cut prices to increase sales. Signup and view all the answers

How did department stores change the idea of shopping?

By bringing together a huge array of different products in a large elegant building. Signup and view all the answers

What is a Lockout in the context of labor unions?

A refusal to allow workers on the property and to pay them. Signup and view all the answers

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.