Chapter 10
Market Expansion and Industry in First
Transition
GENERAL QUESTIONS
1. Which of the following phrases does not describe an essential characteristic of
a factory?
a. produces a standardized product to be sold in a wide market
b. relies on stocks and bonds in order to finance plants and machinery
c. assemble workers under a definite organizational discipline
d. carries out complex operations in one building or in adjacent buildings
2. The first factories in the United States were developed within what industry?
a. iron smelting
b. grain milling
c. boot and shoe
d. cotton textile
3. Samuel Slater is most recognized for
a. inventing the cotton gin.
b. inventing the telegraph.
c. lobbying the government for the abolition of slavery.
d. playing an integral role in developing the first American factory.
4. Francis Lowell’s Boston Manufacturing Company
a. specialized in the production of one type of cloth.
b. combined all four stages of cloth production in one plant.
c. sold its product throughout the United States.
d. used power looms for weaving.
e. all of the above
5. Which is not an advantage of corporations?
a. limited liability
b. longevity and permanence
c. more likely to earn higher profits
d. ease of attracting investors
6. According to Walton and Rockoff, what is not a pre-condition for factory
production and industrialization?
a. standardized parts
b. sufficient power and energy
c. continuous process production
d. a sufficiently centralized administrative structure
7. Which of the following industries was not among the ten leading industries in
1860?
a. boots and shoes
b. printing and publishing
c. machinery
d. lumber
8. According to the 1860 census, the top employer in manufacturing was the
_______ industry.
a. boot and shoe
b. cotton textile
c. flour and meal
d. iron
9. The development of interchangeable parts by Whitney and North allowed
a. machinery to be replaced by skilled labor.
b. capital-labor proportions in the United States to remain equal to those in
England.
c. producers to raise the price of guns.
d. skilled labor to be replaced by unskilled labor and machines.
10. The primary source of power for industrial production in the antebellum
period was
a. coal.
b. steam.
c. water.
d. wood.
11. From 1800-1860, which part of the nation was most opposed to high tariffs?
a. the South
b. New England
c. Middle Atlantic states
d. Far Western states
12. From 1800-1860 which part of the nation most supported high tariffs?
a. the Southeast
b. New England
c. the Southwest
d. Far Western states
13. What best describes the antebellum economy?
a. By 1860 the size of most American firms was comparable to the size of
firms today.
b. Manufacturing had replaced agriculture as the largest sector of U.S.
employment.
c. Heavy equipment was one of the top-three manufacturing sectors.
d. The United States developed many new ways of combining factors of
production to substitute capital for labor.
ECONOMIC INSIGHTS
1. Which was not a way in which tariffs hurt the South?
a. Southern-produced products lost U.S. market share.
b. The tariffs raised the price of imported goods to consumers.
c. England had less money with which to purchase American-made goods.
2. What constituted the majority of federal government revenues in 1860?
a. property tax
b. tariffs
c. income tax
d. fees and licenses
3. Tariffs comprised approximately what percentage of the federal government
revenues between 1790 and 1860?
a. 97 percent
b. 55 percent
c. 25 percent
d. 1 percent
ECONOMIC ANALYSIS
1. The antebellum period was characterized by many changes in tariff rates.
What best describes the effect of removing a tariff on foreign cotton textiles?
a. The total supply curve of textiles would shift back.
b. The price of both foreign-made and domestic-made textiles would
decrease.
c. The price of foreign-made textiles would decrease and the price of
domestic-made textiles would increase.
d. The total (foreign and domestically produced) quantity of textiles
purchased in the United States would decrease.
e. The real income of textile consumers would decrease.
2. High value-added per employee is associated with
a. “high-tech,” capital-intensive industries.
b. “low-tech,” labor-intensive industries.
c. the shoe industry in 1860.
d. the use of unskilled labor.
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