Chapter 3 Test Review
Industrialization/Gilded Age
Use your “Guided Reading” handouts. Know these terms in addition to the Industrialists organizer:
Lesson 1
Gross National Product –
the value of all goods and services that a country produces during
a year
Population growth –
due to children living into adulthood and immigration
Thomas Alva Edison –
“Wizard of Menlo Park”/laboratory invented phonography, electric
generator, lightbulb, battery, motion picture
Alexander Graham Bell –
Invented the telephone
laissez faire –
Belief that government should not interfere in the economy.
Advocated low taxes.
entrepreneur –
People who risk their capital to organize and run a business.
tariffs –
Taxes. High tariffs protect business from foreign competition. Low
tariffs promote trade abroad and keep the cost of imported goods
low.
Lesson 2
Pacific Railway Act –
gave Union Pacific & Central Pacific corporations permission to
build a transcontinental railroad
Union / Central Pacific –
Union Pacific moved westward from Omaha,NE. Central Pacific
moved eastward from California and employed Chinese
immigrants. They met in Promontory Summit, Utah.
Great Northern Railroad –
James J. Hill. From Wisconsin & Minnesota to Washington state.
Built without land grants. Shipped goods to Washington for
delivery to Asia. This allowed rail cars were sent full in both
directions.
land grants –
The government gave railroad companies land grants, which
allowed the railroad companies to raise money for construction.
This led to corruption.
time zones –
Country divided into 4 time zones to promote train scheduling and
passenger safety
robber baron –
Lesson 3
industrialists who grew wealthy unethically
stocks –
way to raise money and spread financial risk
fixed costs –
costs a company pays even if it is not operating (mortgage, taxes,
loans)
economies of scale –
cost of manufacturing is decreased by producing goods quickly
and in large quantities
trusts –
Rockefeller’s Standard Oil was the first. A legal agreement
allowing one person (trustee) to manage another person’s
property.
holding companies –
A company that does not produce anything itself but owns stock in
companies that produce goods.
Vertical Integration –
Used by Andrew Carnegie – when a company grows by buying
different steps in the production/distribution process
Horizontal Integration –
Used by John D. Rockefeller, Standard Oil, – when a company
grows by buying its competitors
Lesson 4
Unions
Why were unions formed?
Better wages, safer working conditions
What tactics did they use?
Strikes, Boycotts, Arbitration, Closed shops
What challenges did they face?
Contracts, Detectives looking for “troublemakers”,
Blacklists, Lockouts, Strikebreakers. Violence during
strikes undermined their goal.
Injunction –
a court order
arbitration –
settling a dispute by agreeing to accept the decision of an
impartial outsider