Deck 19: The New Industrial Order

Question 1

For the first three-quarters of the nineteenth century, investment capital came mostly from

A) investment banks.
B) private investors.
C) the savings of the firms.
D) wealthy industrialists.

Answer 1

the savings of the firms.

Question 2

What company did J. Pierpont Morgan create when he merged nine competing steel manufacturers into one?

A) United States Steel Corporation
B) Morgan Heavy Industries
C) Carnegie Steel Company
D) British Steel

Answer 2

United States Steel Corporation

Question 3

To pay for building the myriad industrial systems and facilities needed to industrialize America, all of the following developments occurred EXCEPT

A) foreign governments investing heavily in U.S. industry for both political and economic reasons.
B) ordinary Americans having more and more surplus wealth to save and invest.
C) a rapid increase in the use of the form of business organization known as the corporation, which issued certificates of stock.
D) savings banks and stock exchanges channeling investment funds into the purchase of corporate stock.

Answer 3

foreign governments investing heavily in U.S. industry for both political and economic reasons.

Question 4

Which is a true statement about forms of business organization?

A) The corporation was a new organizational technique not used in America before the Civil War.
B) Horizontal integration refers to a corporation controlling the whole stream of production, from raw materials through industrial production to retail sales.
C) The trust was a device to enlarge corporate power by jointly controlling and managing once-competing firms through a central board of directors.
D) The holding company refers to an informal cooperative arrangement between two businesses, devised because it was illegal for corporations to own other corporations.

Question 5

Which of the following, according to critics of industrial capitalism, was a "cost of doing business"?

A) rationalization of the economy
B) concentrated power
C) increased national wealth
D) tying the country together

Question 6

Which statement is NOT true of "vertical integration"?

A) A "fully integrated" vertically-organized corporation was one that controlled sources of raw materials,
means of production, distribution systems, and sales outlets.
B) In an industry oriented toward consumer goods, vertical integration tended to reach "upward" toward consumers.
C) In heavy industries oriented toward supplying other industries, vertical integration tended to . reach "downward" toward raw material suppliers.
D) The Michigan Salt Association is a classic example of vertical integration.

Question 7

A true social Darwinist like William Graham Sumner would accept

A) protective tariffs to help business.
B) labor union strikes to raise wages.
C) business bankruptcies.
D) combinations (either of businesses or workers) to reduce competition.

Question 8

Which of the following statements about American workers is NOT true?

A) Although the Carnegie "rags to riches"experience hardly matched the experience of most workers,
opportunity to rise economically-with higher wages and fewer hours-was enjoyed most by white males.
B)Samuel Gompers of the AFL succeeded as a union leader because he advocated radical changes in the
structure of American capitalism, rather than merely seeking better wages and working conditions.
C) During the later nineteenth century, labor unions provoked alarm among social and political leaders because of a wave of strikes.
D) To achieve high productivity, managers tended to treat workers as impersonal cogs in the industrial machinery.

Question 9

A racist theme threaded through the European drive for overseas dominions in the late nineteenth century, justified by a theory known as social ________, which proclaimed that the fittest race would prevail.

Question 10

A(n) ________ is a legal document, issued by the government, giving the holder exclusive rights to use, make, and sell a process, product, or device for a specified period of time.

Question 11

What were the components of the new industrial order, and how were they brought together in the construction of the Eads bridge?

Question 12

What contributions did Thomas Alva Edison, George Eastman, and Alexander Graham Bell make to business and industry? How did their contributions promote the rise of industrial systems?

Question 13

Why were railroads "America's first big business"? How did they help to foster a "managerial revolution"?

Question 14

Describe the growth of big business, making sure to distinguish among combination, consolidation, vertical growth, and horizontal growth.

Question 15

What was a trust? A holding company? What were their advantages over older forms of business enterprise?

Question 16

Describe the new pattern of industrial work, and explain how it affected workers.

Question 17

What was the "single tax"?

Question 18

Discuss the ways in which the development of the railroads stimulated the economy of late nineteenth-century America.

Question 19

How successful were business people in overcoming the problems that confronted them in the last third of the nineteenth century?

Question 20

How valid were criticisms raised by corporate critics?

Question 21

Explain why there were so many strikes between 1875 and 1900 if the real wages of workers were rising.

Question 22

Discuss the work of Fredrick W. Taylor, and explain why "Taylorism"
was or was not the management fix-all of productivity.
ch19 Key