CRM 1.4 Formative Assessment
Study Guide
The Industrial Revolution
SS.912.A.3 Analyze the transformation of the American economy and the changing social and political
conditions in response to the Industrial Revolution.
SS.912.A.3.2 Examine the social, political, and economic causes, course, and consequences of the Second
Industrial Revolution that began in the late 19th century.
SS.912.A.3.3 Compare the First and Second Industrial Revolutions in the United States. Examples are trade,
development of new industries.
SS.912.A.3.4 Determine how the development of steel, oil, transportation, communication, and business
practices affected the United States economy.
SS.912.A.3.5 Identify significant inventors of the Industrial Revolution including African Americans and
women.
SS.912.A.3.10 Review different economic and philosophic ideologies.
SS.912.A.3.13 Examine key events and peoples in Florida history as they relate to United States history.
The Industrial Revolution in the United States
Complete the following chart:
Notes on and Key Innovations of the 1st Industrial
Revolution
Change manufacturing to machines
Notes on and Key Innovations of the 2nd Industrial
Revolution
The role of government
Spinning Mule
The free enterprise system
Locomotive
The legacy of the first industrial revolution
telegraph
Abundant natural resources
from the 18th to 19th centuries
The economic stimulus provided by the civil war
Identify the individual associated with each of the following inventions and the impact of their invention:
Invention
Inventor
Impact of the Invention
The Incandescent Light Bulb
Humphry Davy
Arc lamps provided many cities with their first electric
streetlights.
The Telegraph
Samuel Morse
the telegraph revolutionized long-distance communication.
The Telephone
Alexander Graham Bell
a written system used to teach speaking to the deaf.
The Sewing Machine
Elias Howe
His invention helped the mass production of sewing machines
and clothing.
Air Brakes
George Westinghouse, Jr.
made rail travel safer
New Ways of Doing Business
Describe the difference between horizontal and vertical integration.
Horizontal integration is when a business grows by acquiring a similar company in their industry at the same point of
the supply chain. Vertical integration is when a business expands by acquiring another company that operates
before or after them in the supply chain.
What was the purpose of horizontal integration?
Horizontal integration is a competitive strategy that can create economies of scale, increase market power over
distributors and suppliers, increase product differentiation and help businesses expand their market or enter new
markets.
What was the purpose of vertical integration?
Vertical integration helps a company to reduce costs across different parts of its production process. It also creates
tighter quality control and guarantees a better flow and control of information across the supply chain. Further
benefits of vertical integration include increasing sales and improving profits.
Why were monopolies DESIRED by business leaders?
monopolies created by private enterprises are designed to eliminate the competition and maximize profits.
Why were monopolies CRITICISED by consumers and government leaders?
The disadvantages of monopolies include price-fixing, low-quality products, lack of incentive for innovation, and
cost-push inflation.
How did the Standard Oil Trust resemble a monopoly?
Both the trial judge and a unanimous federal appeals court agreed that Standard Oil was a monopoly violating the
Sherman Antitrust Act. They also supported the government's recommendation that the trust should be dissolved
into independent competing companies.
Vocabulary Note: Integration, mergers, combines, and consolidates are all used to describe how two or more companies come
together to form one larger company.
The Power of Big Business
How does the government respond to the excessive power of big business in the Gilded Age?
Political corruption ran amok during the Gilded Age as corporations bribed politicians to ensure government policies favored big
businesses
How do workers respond to the excessive power of big business in the Gilded Age?
workers were extremely vulnerable during the Gilded Age. As workers moved away from farm work to factories, mines and other hard
labor, they faced harsh working conditions such as long hours, low pay and health risks.
The American Economic System
List three terms that can be used to describe the American Economic System.
1. Capitalist
2. Free market
3. Laissez- Faire
Who owns most of the factors of production in the American economy?
individuals - NOT the Government
How were corporations better able to take advantage of the industrial economy than smaller businesses?
They were better funded which led to larger production facilities and lower costs of production. They enjoyed bulk
pricing, better interest rates, and better shipping rates.
What is meant by “free trade?”
Free trade means that something produced in one state can be sold without restriction in any other state.
How did free trade between states encourage industrialization?
Free trade among American states meant that companies could obtain raw materials and sell finished goods to an
ever expanding market which encouraged these companies to grow larger and larger
Social Darwinism
Darwin’s theory of evolution stated that all species arise and develop through the natural selection of small, inherited variations that
increase the individual's ability to find food, avoid becoming food, and reproduce.
How could this theory be applied to society?
In the following analogy, what is Rockefeller’s “Beauty Rose” intended to represent and what are the sacrificed “early buds” supposed to
represent?
“The American Beauty Rose can be produced in the splendor and
fragrance which bring cheer to its beholder only by sacrificing the
early buds which grow up around it. This is not an evil tendency in
business. It is merely the working-out of a law of nature and a law of
God.”
John D. Rockefeller
Impact on Florida
Who was the principal developer of the Florida East Coast Railway?
Henry flagler
Based on where the Florida East Coast Railway operated, what appears to be the major “attraction” to Florida during the Gilded Age?
The beaches
How would this railway line help to define the future of Florida?
Because people started to move there, to the litoral