Deck 3: The Industrial Revolution: Challenges and Perspective

Question 1

The industrial revolution began first in the United States of America and then moved to England.

Answer 1

False

Question 2

The craft workers, (for example, wool-combers) found factory work very attractive since it resembled their guild workshops.

Answer 2

False

Question 3

Early factory managers thought that managerial skills could be transferred easily from one industry to another.

Answer 3

False

Question 4

In a comparative study, James Montgomery found that Britain had higher costs of production, paid higher wages, had lower materials costs, and had a lack of qualified managers. The United States, on the other hand, had lower costs, paid lower wages, paid more for raw materials, and had many capable managers.

Question 5

"Saint Monday"
referred to workers not appearing for work on Mondays or working very slowly at the beginning of the week.

Question 6

The critics of the factory system were influenced by the moral ideals known as "Victorian."

Question 7

James Montgomery of Glasgow (Scotland) prepared what were most probably the first "management"
texts.

Question 8

Thomas Malthus's "population argument"
stated that population increases in geometric proportion while the food supply at best increases only arithmetically. Thus wages would rarely rise above the subsistence level.

Question 9

The "iron law of wages"
said that in the long run real wages would always tend to stabilize at some minimum level that would provide the worker with just enough means to subsist.

Question 10

The Industrial Revolution did not create poverty; it inherited it.

Question 11

Child and female labor were created by the Industrial Revolution.

Question 12

The heart of the Industrial Revolution was the substitution of machine power for human and other natural sources of power.

Question 13

Training during the Industrial Revolution was conducted largely in vocational-technical schools that were financed by the government.

Question 14

Adam Smith held that monetary incentives brought out the best in people and that they would work harder to get more. This is known as the "economic man"
assumption.

Question 15

The goal of the new "factory ethos"
was to use religious morals and values to create the proper attitudes toward work.

Question 16

The mercantilist economists believed that worker income and the amount of labor offered were negatively related--that is, as wages rose, workers would be less willing to work.

Question 17

Preindustrial societies are characterized by:

A) low per capita income
B) economic stagnation
C) dependence on agriculture
D) all of the above
E) only a and b above

Question 18

The labor problems during the Industrial Revolution included:

A) unions of both craft and industrial workers
B) training
C) discipline
D) all of the above
E) only b and c above

Question 19

The heart of the industrial revolution was really the:

A) printing press
B) steam engine
C) workers' acceptance of the factory ethos
D) idea of division of labor
E) development of management thought

Question 20

In regard to worker income and the abundance of labor, Adam Smith:

A) found them positively related (that is, higher wages led to a greater willingness to work).
B) found no relationship between income and willingness to work.
C) felt that higher wages encouraged workers to be more active, diligent, and expeditious.
D) only a and b above
E) only a and c above

Question 21

Which of the following was not a management problem during the Industrial Revolution?

A) finding good managers
B) finding adequate labor
C) performing the management functions
D) preventing combinations of workers into unions
E) developing skilled workers

Question 22

Perfection of the steam engine was due to the work of:

A) Hero of Alexandria
B) Thomas Newcomen
C) James Watt
D) Matthew Boulton
E) Daniel McCallum

Question 23

The factory system led to:

A) a general rise in the standard of living
B) rising real wages
C) decreasing infant mortality
D) all of the above
E) only and above

Question 24

The emergence of steam power in the Industrial Revolution enabled:

A) lower production costs
B) lower prices
C) expanded markets
D) all of the above
E) only a and b

Question 25

The first "management" texts were prepared by:

A) James Montgomery
B) James Watt
C) Charles Babbage
D) Andrew Ure
E) Charles Dupin

Question 26

Which of the following is not a method of discipline (motivation) discussed in Chapter 3?

A) positive inducements
B) negative inducements
C) job enrichment
D) the factory ethos
E) wage incentive plans

Question 27

Based on the evidence that James Montgomery gathered in comparing the early British and American factories, one would conclude that:

A) American labor was unskilled and lower paid than in Britain
B) British management was more efficient than American management
C) Britain paid less for raw materials because of its numerous colonies
D) American females earned the same wages as American male workers
E) The British domestic system was very profitable

Question 28

J. B. Say added a fourth factor of production, management. What were the other factors? Why was Say's idea important?

Question 29

What were the differences between the mercantilists and Adam Smith regarding motivation?

Question 30

Why did Adam Smith ask employers to "moderate" their use of piece-work incentive payment plans? Do you agree with his reasoning?