Unit 6: Response to Industrial America Flashcards
An economic system that is characterized by private ownership of property and the use of that property to make a profit for the individual or the corporation acting as an individual
Capitalism
What does capitalism support?
The democratic ideal of individual freedom and opportunity
The combination of one or more companies
Mergers
When a company is the only provider of a good or service
Monopolies
Early in the Industrial Revolution, critics began to what?
They began to question the compatibility of large, unchecked corporations and the rights of workers and consumers in a democracy
What was the economic engine that drove the economy?
The railroad
The establishment of several transcontinental routes led to the…
development of national market
Where were new towns grown?
along the railroads
Where were older towns?
were able to specialize in particular products
Why were some railroads forced to merge with others to survive?
Due to competition
The national economy was thrown into what when the cut-throat competition drove some railroad companies into bankruptcy?
Depression
What were some of the important entrepreneurs also known as?
Robber Barrons
What did Carnegie develop?
the Bessemer process to mass produce steel
What did Carnegie use to create a monopoly over the steel industry?
Vertical Integration
The practice of owning all the means of production to keep costs down
Vertical Integration
Who undersold the market until he drove his competition out and then increased the price of oil?
John D. Rockefeller
Who began the business strategy known as “Trust” to gain control of the oil refining industry through a horizontal integration?
John D. Rockefeller
A combination of firms or corporations formed by a legal agreement (to reduce competition)
Trust
When one company takes over and controls all competing companies
Horizontal Integration
What two ideas justify the business practices of the Robber Barons?
Social Darwinism and Laissez Faire
