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US History, Chapter 9
Most of the questions are definitions, don't be scared by the total number
Terms in this set (39)
Gross National Product (GNP)
The total value of all goods and services produced by a country.
Literally means "let do", meaning "let people do as they meant should not interfere in the economy other than to protect private property rights and maintain peace". It increases costs and eventually hurts society more than it helps. Laissez-faire relies on supply and demand rather than the government to regulate prices and wages.
People who risk their capital in organizing and running a business.
Reversing years of declining tariffs.
Alexander Graham Bell
The inventor of the telephone. Also organized the Bell Telephone Company, which eventually became the American Telephone and Telegraph Company (AT&T).
Thomas Alva Edison
The inventor of the phonograph, who also perfected the lightbulb, improved the battery, the dictaphone, the mimeograph, and the motion picture. He organized the Edison Electric Illuminating Company and began the transformation of American society.
How did oil production affect the American economy?
Petroleum was in high demand because it could be turned into kerosene. The American oil industry was based on kerosene.
How did the government policies affect industrialization?
State and federal governments kept taxes and spending low and didn't impose costly regulations on industry. Nor did they try to control wages and prices. The government went beyond laissez-faire and adopted policies intended to help industry, although those policies frequently produced results other than what had been intended. High tariffs contradicted laissez-faire ideas and hurt many Americans, American companies, farmers.
How did the use of electric power affect the economic development of the United States?
A lot of new processes and inventions were getting invented in all industries. Prices of many products also dropped and the process of the United States industrialization went faster and better.
Pacific Railway Act
This act provided for the construction of a transcontinental railroad by two corporations, the Union Pacific and the Central Pacific railroad companies, encouraged rapid construction. The government offered each company land along it's right-of-way in order to increase the level of competition between them.
The United States were divided into 4 time zones by the American Railway Association in order to make rail service safer and more reliable.
Land Grants were given to railroad companies and allowed them to sell land to settlers, real estate companies, and other businesses to raise the money they needed to build the railroad.
A construction company set up by several stock-holders of the Union Pacific, including Oakes Ames, a member of Congress. Credit Mobilier greatly overcharged Union Pacific for the work it did, and since the same investors controlled both companies, the railroad agreed to pay the inflated bills.
Why were many workers on the Central Pacific Railroad recruited from China?
Because of a shortage of labor in California, the central pacific railroad hired workers from China because it was closer to California.
How did the government help finance railroads?
The government gave land grants. the people sell the land and use the rest it to make railroads or build on. another way was making grafts. grafts are the acquisition of money in dishonest ways, as in bribing a politician.
How was the Great Northern different from other railroads of the time?
It became the most successful transcontinental railroad and the only one that was not eventually forced into bankruptcy. Also the railroad was able to earn money by hauling goods both east and west, instead of simply sending lumber and farm products east and coming back empty, as many other railroads did.
An organization owned by many people but treated by law as though it were a single person. It could own property, pay taxes make contracts, and sue and be sued.
The people who own the corporation.
The sign of ownership of the company.
Economies of scale
Corporations make goods more cheaply because they produce so much so quickly using large manufacturing facilities.
The costs a company has to pay, whether or not it is operating.
The costs that occur when running a company, suck as paying wages and shipping charges and buying raw materials and other supplies.
Agreements organized by many companies to maintain prices at a certain level.
A company owns all of the different businesses on which it depends for its operation. It saved companies money while enabling big companies to become even bigger.
Combining many firms engaged in the same type of business into one large corporation.
A single company achieves control of an entire market.
A new way of merging businesses that didn't violate the laws against owning other companies.
It doesn't produce anything itself, it just owns the stock of companies that do produce goods. A holding company controls all of the companies it owns, effectively merging them into one large enterprise.
What factors led to the rise of big business in the United States?
Big businesses could produce goods more cheaply and efficiently. They could continue to operate in poor economic times by cutting prices to increase sales, rather than shutting down. Many were also able to negotiate rebates from the railroads, thus lowering their operating costs even further.
What techniques did corporations use to consolidate their industries?
Merging businesses (trusts), making holding companies (= not producing anything by themselves)
What innovations did retailers introduce in the late 1800s to sell goods to consumers?
A rise in the value of money. Throughout the late 1800s, deflation caused prices to fall, which increased the buying power of workers' wages.
Unions limited to people with specific skills.
United all craft workers and common laborers in a particular industry.
A list of "troublemakers". Once blacklisted, a laborer could get a job only by changing residence, trade, or even his or her name.
Companies lock workers out of the property and refused to pay them.
Theory of socialism in which a class struggle would exist until the workers were finally victorious, creating a classless society.
A process in which an impartial third party helps workers and management reach an agreement.
An agreement in which a company agrees to hire only union members.
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