Railroads, Steel and Oil 6.1

Question 1

Corporations

Answer 1

Companies or Goups of People that INVEST in a business, then SHARE ITS PROFITS

Question 2

Depression

Answer 2

A Severe and LONGTERM ECONOMIC DECLINE. Characterized by 1) a number of business failures 2) reduced industrial output 3) high unemployment

Question 3

Recession

Answer 3

A relatively SHORT-LASTING slowdown of economic growth. Often paart of a NORMAL business cycle.

Question 4

Robber Barons

Answer 4

Railroad Industry Leaders who became known for their ruthless methods against competitors. (Like Cornelius Vanderbilt and Jay Gould)

Question 5

Interstate Commerce Act

Answer 5

A law that established a commission that supervised and regulated the nations railroads, investigated complaints about business practices, and sued companies that violated regulations.

Question 6

Bessemer Process

Answer 6

The use of forced air to remove impurities, such as carbon from iron, which transforms iron into steel.

Question 7

Vertical Integration

Answer 7

A company takes control of ALL phases of production, from start to finish.

Question 8

Horizontal Integration

Answer 8

Purchasing other companies that offer the same goods and services to reduce the # of competitors and achieve control within an industry.

Question 9

Monopoly

Answer 9

The complete control of an industry or the market for a service or product

Question 10

Social Darwinism

Answer 10

19th Century Philosophy: Argued human social history could be understood as a struggle between the wealthy and the poor, with the strongest and fittest invariably triumphing.

Question 11

Trust

Answer 11

A company managed by members of a board rather than owners or stockholders.

Question 12

Muckrakers

Answer 12

Investigative journalists of the early 1900s who exposed misconduct by powerful organizations of people.

Question 13

How were WORKERS affected by economic downturns?

Answer 13

Many workers lost their jobs.

The companies used cash reserves during these times, and fired workers as needed to save money.

Question 14

How did some states respond to robber barons?

Answer 14

Some states set up commissions or agencies of experts to investigate the railroad practices and to settle issues of rates, finance and service.

Question 15

Andrew Carnegie

Answer 15

Dominated the Steel Industry

Believed in Social Darwinism, but also believed the wealthy were bound by duty to share their wealth with society.

Question 16

Philanthropy

Answer 16

Promoting the welfare of others through financial support.

Question 17

John D. Rockefeller

Answer 17

Oil tycoon.
Founded Standard Oil Company.
Robber Baron because he used price- cutting to lure constomers and horizontal integration to dominate the market.

Question 18

How are the tactics and actions of the industrial leaders similar?

Answer 18

Used tactics to dominate the industry
     Vertical Integration
     Horizontal Integration
     Price-cutting
Also contributed large sums of money to philanthropic organizations.

Question 19

Ida Tarbell

Answer 19

A Muckraker, she wrote a series of articles called The History of the Standard Oil Company, exposing the negative affects Rockefeller’s business practices had on his workers. (Paid poorly, many living in poverty)

Question 20

Characteristics of the 2nd Industrial Revolution

Answer 20

1) Government’s increased role in social and business affairs. 2) Ownership in company stocks became a common practice.