Name________________Date Due_10_06_Thurs/ Posted internet Sat 10_01
Chapter 13 section 3 pages 363 through 366
New Methods and Business Organizations
Learning Objectives:
A. Explain how and why the methods of production changed during the
Industrial Revolution.
B. Identify what caused corporations to emerge and the effects they
had on business.
C. Define the business cycle and explain how it affected society.
The Main Idea: improved production methods helped to speed
industrialization during the late 1800s.
Capitalism and Changing Production Methods
After reading this section answer the following response question: how did
changes in production methods lead to an improved standard of living?
1. What is the name of an economic system in which individuals or
corporations, rather than governments, control the factors of
production?_______________
2. Name the three factors of production._________
__________ and________
3. Before the Industrial Revolution merchants were the first capitalist.
TF
4. Merchants were the people who bought and sold most goods. T F
5. During the Industrial Revolution, merchants not became involved in not
only buying and selling goods, but also in producing and manufacturing
goods. TF
6. This is called industrial___________.
7. Unskilled labor was possible because machinery divided the
manufacturing process in to steps. TF
8. When manufacturing is divided into steps and unskilled labor assigned
step and production is increased this is called division_____________
___________
9. Machines helped the workers produce_________ and shorter time. This
lowered the cost of________- and made more_________ for the owners
10. Eli Whitney invents a machine that made all parts that were
all___________. Now unskilled could turn out identical____________ parts.
11. Before Eli Whitney and entire gun was made by skilled_____________.
Now unskilled labor could turn out muskets faster and that could be
repaired easier. TF
12. When large identical items are produced in large numbers this is known
as___________
13. Name three things that are necessary for mass production:______
_________ and _____________
14. What does Henry Ford use and by so doing he finds one of the largest
industries in the world?____________
15. By mass-producing many items what happens to the cost of producing
these items___________? As the cost decreases people can afford to buy
these items, what happens to the standard of living?
Now answer the short response question posed at the beginning of this
section.
Rise of the Corporation:
Read the following section and answer the short response question what
advantages did corporations have over sole ownerships and partnerships?
16. A business that is owned by one person is called a sole___________.
17. A business owned by two more people is called a_________.
18. As mass production grew and became common another form of organization
also grew and became common, these businesses allow people to buy______ in
their company.
19. These new business forms are called____________.
20. By selling stock these corporations could raise needed money to do
what two things with their companies__________and___
21. In a Corporation who elects the directors that run the
company?_____________
22. When a single company has complete control of the production or sale
of a single good or service this is called a__________.
23. When a company owns or controls every stage of producing a good, for
example owning: iron mines and steel mills and factories this is called
a____________
Now answer the short response question posed at the beginning of this
section.
Business Cycles:
After reading this section answer the following short response question:
how did the business cycle work after the Industrial Revolution?
24. The Industrial Revolution brought about alternating periods of
prosperity and decline a pattern that came to be called the__________. Is
the United States in one of those business cycles now?
25. When there is a falling demand for goods and industries lay off
workers and therefore these workers have less money to buy goods and
demand is reduced even further the entire economy could sink
into?______________
26. Eventually what happens after a depression?_____________
Now answer the short response question posed to you at the beginning of
this section.
Suggested answers to short response questions:
1. How did changes in production methods lead to an improved standard of
living? Goods became more affordable.
2. What advantages did corporations have over sole ownerships and
partnerships? It was easier to raise money and create monopolies.
3. How did the business cycle work after the Industrial Revolution?
Industries and economies had alternating periods of prosperity and
decline.
Look at the picture on page 366 of your textbook. There are bulls and
bears. What does a bull market mean? What is a bear market?
The graph on page 365. What happens in the steel industry between 1885 and
have this kind of an impact on the steel industry? Look at the picture on
page 364. What make of car is being produced, what model is this? What
year is this?