US History Chapter 14 Study Guide

Questions and Answers

Explain the Bessemer process and its effect on the price of steel.

The Bessemer Process was the use of a blast of hot air to purify molten iron and converted it into steel. This made it easier to produce mass amounts of steel, so the price was low.

Explain the Transcontinental Railroad and its effects.

The Transcontinental Railroad was a railroad system that crossed the continental United States. It allowed for settlement in the west, provided jobs, promoted trade, boosted steel and train manufacturing due to demand for railcars and rails, and contributed to the growth of new towns and cities.

Where did the First Industrial Revolution begin and what did it involve?

The first Industrial Revolution began in England, involving the transition from the power of animals and humans to steam and water power.

What changes led to the Second Industrial Revolution?

In the late 1800s, new technologies sparked the Second Industrial Revolution. Electrical power replaced steam and water power, factories became larger and produced more goods, and faster transportation improved the movement of people and goods. Signup and view all the answers

What was important about Anthony Lucas?

Anthony Lucas struck a rich oil pocket at Spindletop Hill near Beaumont, Texas, with oil gushing 100 feet in the air for 9 days before it could be capped. Signup and view all the answers

What state did the oil boom occur in and what were its consequences?

The oil boom occurred in Texas, leading to the production of more than 17 million barrels of oil in 1902. Long-term consequences included the widespread use of gasoline and kerosene by companies like Exxon Mobile, Gulf Oil, and Texaco. Signup and view all the answers

Define corporations and what were the advantages of this.

A corporation is a business with the legal status of an individual, owned by stockholders. Advantages include the ability to raise large sums of money, limited liability for stockholders, and not being dependent on a single owner for existence. Signup and view all the answers

Explain what dividends are in relation to stockholders.

Dividends are the payments made to stockholders by the company. Signup and view all the answers

Define Laissez-faire capitalism and its effects on society.

Laissez-faire is French for 'to let do' and this governing style hurt consumers and workers. Signup and view all the answers

Define monopoly and its effects on society.

Monopoly means that no other company can compete with the monopolistic entity, allowing it to raise prices or lower quality more frequently. Signup and view all the answers

Define proprietorship and one benefit of this type of ownership.

Proprietorship is when one single person or family owns a company, allowing them to receive the profits. Signup and view all the answers

Define communism and list one country that exemplifies this economic system.

Communism is an economic and political system where governments own the means of production and control economic planning; North Korea exemplifies this system. Signup and view all the answers

John D. Rockefeller was the tycoon of what industry?

John D. Rockefeller was the tycoon of the oil industry. Signup and view all the answers

Andrew Carnegie was the tycoon of what industry?

Andrew Carnegie was the tycoon of the steel industry. Signup and view all the answers

Frank Woolworth was responsible for introducing what type of store?

Frank Woolworth was responsible for the 5 and 10 cent store and chain stores. Signup and view all the answers

What is important about George Pullman?

Pullman invented sleeping cars and built his own town, Pullman, Illinois, for his employees, paying them in Pullman scripts that did not work in Chicago. Signup and view all the answers

Explain the idea of the Gospel of Wealth and identify the individual who promoted this philosophy.

The Gospel of Wealth was Andrew Carnegie's philosophy stating that rich people had a duty to the rest of society. Signup and view all the answers

Define capitalism and identify which country is the leading capitalist of the world.

Capitalism is an economic system in which private businesses run most industries; the US is the leading capitalist country. Signup and view all the answers

Define wildcatters.

Wildcatters were oil prospectors. Signup and view all the answers

Study Notes

Bessemer Process

The Bessemer Process utilized a blast of hot air to purify molten iron, transforming it into steel.
This innovation facilitated mass production of steel, significantly lowering its price.

Transcontinental Railroad

The Transcontinental Railroad linked the eastern and western United States.
It spurred westward settlement, created jobs, boosted trade, and increased demand for materials like steel.
New towns arose and existing towns expanded into larger cities due to increased accessibility.

First Industrial Revolution

Began in England, shifting from animal and human power to steam and water power.
Marked a significant change in production methods and economic structure.

Second Industrial Revolution

Sparked in the late 1800s by advancements in technology, including electrical power.
Factories grew larger, producing an increased volume of goods.
Improved transportation facilitated quicker movement of people and products.

Anthony Lucas and Spindletop

Anthony Lucas discovered a significant oil reservoir at Spindletop Hill, Texas.
The initial oil flow reached heights of 100 feet for nine days before being capped, marking an oil boom.

Texas Oil Boom

The Texas oil boom began with the discovery of oil, producing over 17 million barrels by 1902.
Major oil companies like Exxon Mobil, Gulf Oil, and Texaco emerged, leading to widespread use of gasoline and kerosene.

Corporations

A corporation is a legal entity owned by stockholders, with distinct advantages.
Corporations can raise capital through stock sales, provide limited liability to stockholders, and ensure continuity beyond single ownership.

Dividends

Dividends are payments distributed to stockholders as a share of a corporation's profits.

Laissez-faire Capitalism

Laissez-faire is a hands-off economic approach that can negatively impact consumers and workers through unchecked corporate power.

Monopoly

A monopoly exists when a single corporation dominates a market, preventing competition.
This can lead to higher prices and lower quality products for consumers.

Proprietorship

A proprietorship is an ownership model where a single individual or family owns a business and retains all profits.

Communism

Communism is a system where the government controls production and economic planning.
North Korea exemplifies this economic model today.

Key Industrial Tycoons

John D. Rockefeller was a dominant figure in the oil industry.
Andrew Carnegie was a key player in the steel industry.

Frank Woolworth

Frank Woolworth introduced the concept of 5 & 10 cent stores and pioneered chain retailing.

George Pullman

Invented sleeping cars for the railroad and created Pullman, Illinois, as a company town for his workers, paying them in scripts usable only at company stores.

Gospel of Wealth

Andrew Carnegie's Gospel of Wealth asserted that wealthy individuals have a moral obligation to donate wealth for the benefit of society.

Capitalism

Capitalism is characterized by private ownership of industries and businesses.
The United States is recognized as a leading capitalist nation.

Wildcatters

Wildcatters were independent oil prospectors seeking to discover new oil fields.

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Description

This quiz covers key concepts from Chapter 14 of U.S. History, focusing on significant developments like the Bessemer process and the Transcontinental Railroad. Test your knowledge on how these innovations shaped the economy and transportation in America. Perfect for exam preparation or review.