Chapter 9 cards – Flashcards
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gross national product
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the total value of all goods and services produced by a country
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Edwin Drake
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drilled first oil well in Pennsylvania
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lassiez-faire
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belief that government should not interfere in a nation's economy
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entrepreneurs
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people who risk their capital in organizing and running a business
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Morrill Tariff
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a tariff passed by the Republican Congress after the Civil War
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Alexander Graham Bell
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inventor of the telephone
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Thomas Alva Edison
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inventor of many devices, including the phonogrpah and the light bulb
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Pacific Railway Act
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the law that provided for the construction of a transcontinental railroad
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Grenville Dodge
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engineer that helped direct the building of the Union Pacific Railroad
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Leland Stanford
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one of the "Big Four" who made a huge fortune investing in the Central Pacific Railroad company
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Cornelius Vanderbilt
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consolidated three railroads to form the New York Central
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time zone
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the division of the United States into regions where the same time was kept
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land grant
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portions of land given by the federal government to railroad companies
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Jay Gould
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entrepreneur who used information he received as a railroad owner to manipulate stock prices to his benefit
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Credit Mobilier
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scandal involving the Union Pacific
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James H. Hill
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entrepreneur who built the Great Northern Railroad
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corporation
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an organization owned by many people but treated by law as though it were a single person
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stockholders
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people who own a corporation through shares of ownership
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stock
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shares of ownership
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economies of scale
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ability of large manufaturing facilities to produce more goods more cheaply
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fixed costs
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costs a company has to pay whether it is operating or not
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operating costs
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costs that occur when running a company
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pool
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agreement among companies to maintain prices at a certain level
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Andrew Carnegie
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made the steel industry a large business
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Bessemet process
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process for making high quality steel efficentely and cheaply
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vertical integration
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the joining of different types of businesses that are involved in the operation a particular company
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horizontal integration
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the joining of many firms involved in the same type of business into one large corporation
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monopoly
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a single concept that controls an entire market
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trust
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a legal concept that allows a person to manage another person's property
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holding company
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a company that owns the stocks of companies that produce goods
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deflation
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a rise in the value of money
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trade unions
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unions that were limited to people with specific skills
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industrial union
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unions taht represented all craft workers and common laborers in a particular industry
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blacklist
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a list of people who tried to organize a union or strike abd were considered trobulemakers by employers
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lockout
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a method used by employers to prevent unions from forming
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Marxism
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the ideas of Karl Marx
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Knights of Labor
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the first nationwide industrial union
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arbitration
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a process in which a impartial third party helps workers and management reach an agreement
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closed shop
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a system in which companies could only hire union members
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Name 3 reasons for the growth of industries
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1. natural resources were available 2. Population increased 3. Government policies favored industries
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By 1914, what had happened to the gross national product?
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it was eight times greater than it had been the end of the Civil War
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Where was the first oil well drilled?
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Titusville, Pennsylvania
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In addition to natural resources, what else provided factories with a larger workforce?
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a population increase
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What one resource helped to expand the nation's economy?
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petroleum
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What did the people who supported the laissez-faire policy believe?
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That the goverment should not interfere with the economy?
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What does laissez-faire rely on?
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supply and demand to set the prices and wages
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What does the laissez-faire theory state?
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that a free market in which companies compete leads to more wealth for everyone
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In what did many entrepreneurs invest their money?
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They invested in factories and railroads. Europeans in particular also invested in American businesses
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What did the Morrill Tariff do?
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increase tariffs dramatically
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Did higher tariffs opposed laissez-faire policy?
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Yes
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What policies did the federal goverment introdcues to help industry?
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They increased tariffs, provided RR grants, gov. increased tariffs, sold land with mineral for less than value
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What were two major inventions invented by Thomas Edison?
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the phonograph and the light bulb
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How did the invention of the telephone change American society?
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It helped people communicate faster and reach eachother over long distances
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List some causes of railroads growing?
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1. entrepreneurs built large connecting railroads with smaller lines 2. Time zones made travel reliable 3. Land grants from the fed. gov. encouraged the building of railroad
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To encourage the Union Pacific and Central Pacific railroad companies to build a transcontinental railroad, what did the gov. do?
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give each company land along the route of the tracks
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What two companies were involved in building the first transcontinental railroad?
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The Union Pacific and the Central Pacific
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To make rail service more reliable, what did the American Railway Association do?
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divide the country into four time zones in regions where the same time was kept
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How did the large railroad systems benefit the nation?
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1. they could shift rail cars from one sections of the country to another. New technology allowed railroads to put longer and heavier trains on their lines.
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What did railroads companies do with the land grants they recieved from the government?
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They would sell the land to settlers and businesses to raise the money to build the railroad
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Explain the controversy between the Credit Mobilier and Congress?
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The C.M. was a construction company that several stockholders in the Union Pacific. The C.M. greatly overcharged the the U.P. and the railroad soon went backrupt. to stay afloat with land grants, they bribed Congress with cheap land grants.
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Describe what lead to changes in Marketing and Selling Goods?
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Advertism were illustrated larger, Department stores sold lots of things, chain stores offered goods at low prices.
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What can corporations do by issuing stock?
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raise large amounts of money while spreading out the financial risk
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What did corporations do with the money they received from selling stock?
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invest in new tech, hire many workers,and to buy many machines
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How could corporations succed even when the economy was down?
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They had low operating costs
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What is vertical integration?
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owning all of the different businesses that a company needs to run
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What is horizontal integration?
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this involves owning many companies in one large corporation
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In what two ways did Andrew Carnegie and other business leaders try to make their businesses larger?
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Horizontal and vertical integration
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How did the way retailers advertise goods change in the 1800s?
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They used large ads and chain stores
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What ways did employers stopped unions from forming?
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1. They required workers to sign contracts promising not to form 2. Blacklised those who started unions 3. Used lockouts to break unions
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Why did employers cut worker's wages in the late 1800s>
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It happened due to deflation, the rise in value of money. At first, prices fell faster than wages. Wages were cut to help balance the economy and match cheaper costs.
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What two typers of workers were there in industries in the 1800s?
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Craft workers and common laborers
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in what ways did employers try to stop the formation of unions?
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They required workers to sign contracts to not form unions, they hired detectives to point out union leaders, they used blacklists, and they used lockouts.
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What 3 things did Karl Marx believe?
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That workers would eventually revolt, take control of the factories, and overthrow the government
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Why were some Americans suspicious of unions?
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They were suspicious because many workers were European and believed that immigrant workers were influenced by MAxism, which is equal to anarchism.
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What was the first nationwide industrial union?
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The Knights of Labor
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Why did the Knights of Labor lost members after the Haymarket Riot?
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Because one of men arrested was a member of the K.O.L. and was involved with Marxism
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What were three goals of the American Federation of Labor?
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To convince companies to recognize unions and to agree to negotiations, to get closed shops, and to get an eight-hour workday
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Why was the Women's Trade Union League forms?
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to address women's labor issues.
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Name an effect of increased immigration
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growth of cities and industry, anti-immigrant movements
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Name a cause of growth of cities/industry, anti-immigration movements
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increased immirgration
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Name an effect of new tech
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explosion of railroads, indian wars as settlers "close the fronteir"
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Name a cause of the explosion of railroads, and indian was
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new tech
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Name an effect of the rise of big business
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hazardous working conditions, labor unions and strikes
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Name a cause of hazardous working conditions, labor unions and strikes
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the rise of big business
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Name an effect of the Urban and rural poverty, public education
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reform movements, public educations
