Deck 17: Industrial Expansion and Concentration

Question 1

Mass production integrates

A) continuous flow and interchangeable parts.
B) economies of scale and scientific management.
C) the McCallum principles.
D) the Taylor premises.

Answer 1

continuous flow and interchangeable parts.

Question 2

The leading producer of manufactured goods in 1900 was

A) the United States.
B) Germany .
C) England .
D) Canada .

Answer 2

the United States.

Question 3

The term "________" denotes the adaptation of new technological ideas to existing products and services.

A) invention
B) merger
C) innovation
D) economies of scale

Answer 3

innovation

Question 4

By the eve of World War I, the United States accounted for more than ___ of the world's industrial production.

A) 15%
B) 30%
C) 60%
D) 90%

Question 5

Henry Ford is most recognized for:

A) inventing new technology to further the steel production process.
B) developing the first investment banks.
C) implementing the first progressive, moving assembly-line system for large, complex final products.
D) playing an integral role in developing the first American factory.

Question 6

By the 20^th century, the largest sector of the U.S. economy in terms of commodity output value was

A) agriculture.
B) manufacturing.
C) mining.
D) construction.

Question 7

On the eve of the Civil War, __________ power was more important than _____________ power, but by the end of the 19^th century, 90 percent of manufacturing energy came from _________.

A) animal; water; steam
B) steam; water; electricity
C) wind; water; petroleum
D) water; steam; coal

Question 8

Between 1860 and 1910, the _______________ industry showed the greatest percentage increase in value added per worker.

A) cotton textile
B) men's clothing
C) lumber
D) machinery

Question 9

In the late 19^th century, increases in productivity in the _________ industry were driven mostly by innovation, while increases in productivity in the ________ industry were driven by both invention and innovation.

A) men's clothing; grain milling
B) boot and shoe; cotton textile
C) cotton textile; boot and shoe
D) boot and shoe; men's clothing

Question 10

In the late 1800s and early 1900s, the primary source of energy for manufacturing was

A) coal.
B) petroleum.
C) water.
D) electricity.

Question 11

Which of the following statements provides the most accurate description of the employment growth rate in various sectors of the economy between 1860-1910?

A) All major sectors grew with the exception of agriculture and construction.
B) All major sectors grew, and agriculture grew the most.
C) The manufacturing sector grew the most, followed by railroads, but agricultural employment decreased.
D) All major sectors grew, and railroads grew the most.

Question 12

In 1910, the largest U.S. industry as ranked by value added was

A) machinery.
B) cotton goods.
C) tobacco manufactures.
D) railroad cars.

Question 13

During the 1870s, ___ surpassed ___ as the leading source of power.

A) animals; humans
B) water; animals
C) steam; water
D) electricity; steam

Question 14

Many late 19^th century managerial innovations were first developed by

A) the automobile industry.
B) the railroads.
C) the textile industry.
D) the iron and steel industries.

Question 15

Between 1860 and 1910, output in manufacturing, mining, and railroad freight hauling

A) expanded more rapidly than the labor force in these sectors.
B) grew at about the same rate as the labor force in these sectors.
C) grew more slowly than the labor force in these sectors.
D) expanded, while the labor force in these sectors declined.

Question 16

During the 1870s and 1880s, which technological innovation was introduced?

A) the roller mill to process oatmeal
B) steel-bottomed stills
C) long-distance pipelines
D) the typewriter
E) All of the above are correct.

Question 17

In the late 1800s, the Goodyear welt process vastly increased productivity in the ______ industry.

A) steel
B) boot and shoe
C) tire
D) cotton textiles

Question 18

Between 1860 and 1910, value added by the top ten manufactures roughly

A) doubled.
B) tripled.
C) increased by 500% (a factor of five).
D) increased by 1000% (a factor of ten).

Question 19

The considerable rise of manufacturing in the last half of the 19th century has become known as

A) the Great Leap Forward.
B) the Industrial Revolution.
C) the Second Industrial Revolution.
D) the Ascendancy of Manufactures.

Question 20

The McCallum management principles advocate the use of

A) time-motion study to determine the most productive way to perform job-tasks.
B) employee stock-purchase programs.
C) internal accounting systems and performance evaluations.
D) leveraged buy-outs to increase the firm's control of an industry.

Question 21

According to Alfred Chandler, large vertically integrated firms dominated much of American manufacturing in the early 1900s because

A) U.S. manufacturers sought to emulate the production practices of European manufacturers.
B) U.S. tax laws created strong incentives for vertical integration.
C) continuous-flow technologies were cost minimizing only when the inflow of inputs and the sale of outputs proceeded without interruption.
D) larger firms were better able to fight the establishment of labor unions and collective bargaining arrangements.

Question 22

The name Bessemer is associated with

A) the invention of air brakes for trains.
B) his role as an early union leader.
C) invention of a steel manufacturing process.
D) the development of refrigerated train cars.

Question 23

As a means of gaining monopoly power, holding companies were preferable to gentlemen's agreements and pooling because

A) holding companies did not have an adverse impact on employment.
B) holding companies were able to reduce competition from imported goods.
C) holding companies were legal in most states.
D) holding companies were not subject to corporate profits taxes.

Question 24

In 1901, U.S. Steel was created through the ______________ merger of three steel firms. U.S. Steel combined Carnegie Steel, which had acquired iron ore and coal mines through previous _________ mergers, with National Steel and Federal Steel, both of which had strong __________ alliances.

A) horizontal; backward vertical; forward vertical
B) vertical; horizontal; backward vertical
C) horizontal; horizontal; forward vertical
D) vertical; forward vertical; horizontal

Question 25

A _________ is an agreement under which stockholders of several formerly-competing companies turn over their shares to a group that exercises voting control over the companies.

A) trust
B) gentleman's agreement
C) holding company
D) pooling arrangement

Question 26

Which of the following statements best describes the concentration movement between 1875-1905?

A) There were two phases, the first of which had relatively more horizontal mergers and the second had relatively more vertical mergers.
B) The first phase focused on vertical mergers, the second was a period of relative inactivity in acquisitions, and the third decade was one of horizontal mergers.
C) There were three phases, the first of which had relatively more vertical mergers and the second had relatively more horizontal mergers.
D) There were two waves of mergers. In the first wave most mergers were motivated by the desire to obtain monopoly profits and the second wave was obtained through greater economies of scale.

Question 27

"Taylorism" has been described as

A) dehumanizing.
B) the exploitation of labor.
C) using science to increase production.
D) All of the above are correct.
E) Only b and c are correct.

Question 28

Frederick Taylor

A) studied the movements of workers as they performed job tasks.
B) advocated the use of incentives for superior performance.
C) carried on experiments to determine the optimum size and weight of  tools.
D) developed principles pertaining to the correct routing of work and accurate scheduling of production orders.
E) All of the above.

Question 29

Which of the following statements presents accurate information about the Standard Oil merger?

A) The Standard Oil merger is an example of a vertical merger.
B) Standard Oil was initially organized as a holding company.
C) The petroleum refining industry was never particularly competitive, and was dominated by a few large firms even prior to the Standard Oil merger.
D) Following the merger, Standard Oil controlled 90 percent of U.S. refining capacity.
E) All of the above.

Question 30

Frederick W. Taylor argued that worker efficiency could be improved by

A) analyzing in detail the movements required to perform a job.
B) offering employees quarterly stock options.
C) encouraging employees to form company unions.
D) introducing to a 5-hour\day, 7-day\week schedule

Question 31

Which of the following is an example of a horizontal merger?

A) the consolidation of marketing, processing and purchasing departments by Armour Meat Company
B) the purchase of E.C. Knight Company by American Sugar Refining Company
C) the purchase of Colorado silver mines by the Tiffany Jewelry Company
D) Federal Steel Company's alliance with American Bridge Company

Question 32

A clear benefit of the work of the Federal Trade Commission in the early twentieth century has been

A) the compilation of massive amounts of data useful
B) the breakdown of powerful corporations in industry and finance.
C) the protection of workers' rights.
D) the establishment of consumer protection standards.

Question 33

John D. Rockefeller is most recognized for:

A) developing the oil industry.
B) being an early promoter of the computer industry.
C) lobbying the government for the abolition of slavery.
D) inventing new technology to further the steel production process.
E) being an initial supporter of minimum wage laws.

Question 34

Which country had an international reputation for its industrial cartels at the turn of the century?

A) Columbia
B) Mexico
C) France
D) Germany

Question 35

What best describes the changes in steel production from 1860-1910?

A) The Bessemer process was an earlier methods of production.
B) The Bessemer process replaced older methods of production.
C) The Bessemer process was the first method of producing steel..
D) The Grandy process replaced the Bessemer process.

Question 36

Andrew Carnegie is most recognized for:

A) being the first manufacturer to utilize the assembly line in large-scale production.
B) being a leader in the steel industry.
C) helping implement many of FDR's New Deal policies.
D) being a prominent Civil War general.

Question 37

A horizontal merger

A) combines similar firms that serve separate markets.
B) combines firms that produce similar products.
C) enables a company to control each stage of the production process: from raw materials to the final marketing of the product.
D) enables similar firms to form a cartel.

Question 38

A "vertically integrated firm" is a firm that

A) combines firms which formerly competed.
B) manages all stages of production, from the production of raw materials to the marketing of the final product, within the firm.
C) earns zero economic profits due to the highly competitive market within which it operates.
D) has representatives on its board of directors from many of the companies that it buys from and sells to.

Question 39

In U.S. v. Addyston Pipe and Steel Company (1898), the Supreme Court ruled that

A) horizontal mergers were a violation of the Sherman Act.
B) vertical mergers were a violation of the Sherman Act.
C) collusive agreements among competing firms were a violation of the Sherman Act.
D) mergers that created "corporate monoliths" were a violation of the Sherman Act.

Question 40

In U.S. v. U.S. Steel Corporation , the Supreme Court ruled that

A) U.S. Steel had violated the Sherman Act, particularly by organizing meetings with competitors such as the "Gary Dinners."
B) despite the fact that U.S. Steel controlled 50 percent of output in the steel industry, the company had not achieved monopoly power.
C) large corporations, by definition, violate the Sherman Act.
D) the Sherman Act did not apply to U.S. Steel because steel manufacturing was an activity "clothed with a public interest."

Question 41

Recall the text's discussion of the ten largest U.S. industries by value added in 1860 and 1910.  The emergence of tobacco products and malt liquors as major industries by 1910 suggests that

A) these goods are highly income elastic.
B) these goods are highly income inelastic.
C) these goods are price inelastic.
D) these goods exhibit economies of scale in production.

Question 42

A monopsony is a market in which

A) one firm is the sole producer of a good or service.
B) one firm is the sole buyer of a good or service.
C) firms encourage competition by starting "price wars" among competitors.
D) firms collude in setting prices and levels of output.

Question 43

"Trust busting," including the prosecution of the American Tobacco Company and Standard Oil, was a high priority of _________'s administration.

A) Franklin Roosevelt
B) Ulysses S. Grant
C) James Garfield
D) Theodore Roosevelt

Question 44

The American Tobacco Company was exerting ________________power of tobacco farmers.

A) monopolistic
B) monosponistic
C) oligopolistic
D) . synergistic
E) agricultural

Question 45

In United States v. United States Shoe Machinery Company of New Jersey, et al. the court held that

A) the company's market power broke international law.
B) the company's market power was constitutional.
C) the company had illegally bought up all its competitors.
D) the company did not violate the Sherman Anti-Trust Act because no one could prove that that had been their intent.

Question 46

Based on evidence from the turn of the century, the income elasticity of flour and meal

A) is greater than one.
B) is less than one.
C) approaches infinity.
D) equals zero.