Laissez-Faire Government Quiz & Flashcards

Questions and Answers

A government is laissez-faire when it:

Does not interfere with business affairs and does not regulate its actions. (correct)

Fairly regulates businesses.

Fairly regulates workers.

Leaves workers alone and doesn't regulate unions.

Why was Carnegie Steel able to offer its product more cheaply than its competitors?

Carnegie made an inferior product, so it was less expensive to produce.

Carnegie cut corners in his production, lowering his costs.

Carnegie introduced the Bessemer process, which decreased the cost of production.

Carnegie could cut his costs because he owned the supply of raw materials and the means of production and distribution. (correct)

What is the main reason that the American public turned against monopolies?

They resented the wealth of the big business owners.

They saw the price of goods rise as their wages decreased. (correct)

They saw the price of goods rise as their wages increased.

They were concerned about smaller businesses.

Why did government officials allow monopolies to operate without strong regulations during the Gilded Age?

They believed monopolies were responsible for the growth of the economy. Signup and view all the answers

How did John D. Rockefeller vertically integrate his monopoly in 1882?

He created a trust that controlled oil wells, refineries, and distribution networks. Signup and view all the answers

Which company was a monopoly during the Gilded Age?

Carnegie Steel Signup and view all the answers

What was the main reason that Carnegie invested in the Frick Coke Company?

He wanted to make sure he could always get fuel for his steel plant. Signup and view all the answers

Why was the Cleveland Massacre significant in the formation of Standard Oil?

Standard Oil became a monopoly in the Cleveland oil market after the Massacre. Signup and view all the answers

How did Carnegie's purchase of Allegheny Steel contribute to the formation of his monopoly?

The purchase enabled Carnegie to discover a more efficient production method. Signup and view all the answers

The Cleveland Massacre was:

A takeover by Standard Oil of the refineries in Cleveland. Signup and view all the answers

Study Notes

Laissez-Faire Government

A laissez-faire government does not interfere with business affairs or regulate actions of businesses.

Carnegie Steel's Competitive Advantage

Carnegie Steel offered products at lower prices by implementing the Bessemer process, reducing production costs.
Cost savings also stemmed from Carnegie owning supply chains for raw materials and distribution.

Public Opinion on Monopolies

The American public largely turned against monopolies due to rising prices of goods alongside decreasing wages.

Government Regulation during the Gilded Age

Government officials allowed monopolies to operate with minimal regulation, believing they stimulated economic growth.

John D. Rockefeller's Vertical Integration

In 1882, Rockefeller vertically integrated his monopoly by creating a trust that managed oil wells, refineries, and distribution networks.

Monopolies of the Gilded Age

Carnegie Steel was a key monopoly during the Gilded Age, controlling significant market share in steel production.

Carnegie's Investment in Frick Coke Company

Carnegie invested in Frick Coke Company primarily to secure a reliable fuel supply for his steel production.

Significance of the Cleveland Massacre

The Cleveland Massacre allowed Standard Oil to dominate the Cleveland oil market, enhancing its monopoly status.

Impact of Allegheny Steel Acquisition

Carnegie's acquisition of Allegheny Steel provided access to crucial raw materials, strengthening his monopoly over steel production.

Cleveland Massacre Overview

The Cleveland Massacre refers to Standard Oil taking over Cleveland refineries, marking a critical moment in its expansion as a monopoly.

Description

Explore the intricacies of laissez-faire governance and the rise of monopolies during the Gilded Age. This quiz covers key figures like Carnegie and Rockefeller, their competitive strategies, and public reaction to monopolistic practices. Test your knowledge on the economic landscape of this transformative period in American history.