Question 1

A _________ is an agreement under which stockholders of several formerly-competing companies turn over their shares to a group that exercises voting control over the companies.

Accepted Answer

A)  trust
B)  gentleman's agreement
C)  holding company
D)  pooling arrangement

Question 2

As a means of gaining monopoly power,holding companies were preferable to gentlemen's agreements and pooling because

Accepted Answer

A)  holding companies did not have an adverse impact on employment.
B)  holding companies were able to reduce competition from imported goods.
C)  holding companies were legal in most states.
D)  holding companies were not subject to corporate profits taxes.

Question 3

In U.S.v.Addyston Pipe and Steel Company (1898) ,the Supreme Court ruled that

Accepted Answer

A)  horizontal mergers were a violation of the Sherman Act.
B)  vertical mergers were a violation of the Sherman Act.
C)  collusive agreements among competing firms were a violation of the Sherman Act.
D)  mergers that created "corporate monoliths" were a violation of the Sherman Act.

Question 4

Which of the following statements provides the most accurate description of the employment growth rate in various sectors of the economy between 1860-1910?

Accepted Answer

A)  All major sectors grew with the exception of agriculture and construction.
B)  All major sectors grew,and agriculture grew the most.
C)  The manufacturing sector grew the most,followed by railroads,but agricultural employment decreased.
D)  All major sectors grew,and railroads grew the most.

Question 5

The McCallum management principles advocate the use of

Accepted Answer

A)  time-motion study to determine the most productive way to perform job-tasks.
B)  employee stock-purchase programs.
C)  internal accounting systems and performance evaluations.
D)  leveraged buy-outs to increase the firm's control of an industry.

Question 6

The leading producer of manufactured goods in 1900 was

Accepted Answer

A)  the United States.
B)  Germany.
C)  England.
D)  Canada.

Question 7

John D.Rockefeller is most recognized for:

Accepted Answer

A)  developing the oil industry.
B)  being an early promoter of the computer industry.
C)  lobbying the government for the abolition of slavery.
D)  inventing new technology to further the steel production process.
E)  being an initial supporter of minimum wage laws.

Question 8

Henry Ford is most recognized for:

Accepted Answer

A)  inventing new technology to further the steel production process.
B)  developing the first investment banks.
C)  implementing the first progressive,moving assembly-line system for large,complex final products.
D)  playing an integral role in developing the first American factory. C

Question 9

During the 1870s,___ surpassed ___ as the leading source of power.

Accepted Answer

A)  animals;humans
B)  water;animals
C)  steam;water
D)  electricity;steam

Question 10

By the eve of World War I,the United States accounted for more than ___ of the world's industrial production.

Accepted Answer

A)  15%
B)  30%
C)  60%
D)  90%

Question 11

Henry Bessemer is most recognized for

Accepted Answer

A)  the invention of air brakes for trains.
B)  his role as an early union leader.
C)  invention of a steel manufacturing process.
D)  the development of refrigerated train cars.

Question 12

Which of the following statements presents accurate information about the Standard Oil merger?

Accepted Answer

A)  The Standard Oil merger is an example of a vertical merger.
B)  Standard Oil was initially organized as a holding company.
C)  The petroleum refining industry was never particularly competitive,and was dominated by a few large firms even prior to the Standard Oil merger.
D)  Following the merger,Standard Oil controlled 90 percent of U.S.refining capacity.
E)  All of the above.

Question 13

The term "________" denotes the adaptation of new technological ideas to existing products and services.

Accepted Answer

A)  invention
B)  merger
C)  innovation
D)  economies of scale

Question 14

Based on evidence from the turn of the century,the income elasticity of flour and meal

Accepted Answer

A)  is greater than one.
B)  is less than one.
C)  approaches infinity.
D)  equals zero. B

Question 15

In the late 1800s and early 1900s,the primary source of energy for manufacturing was

Accepted Answer

A)  coal.
B)  petroleum.
C)  water.
D)  electricity.

Question 16

In U.S.v.U.S.Steel Corporation,the Supreme Court ruled that

Accepted Answer

A)  U.S.Steel had violated the Sherman Act,particularly by organizing meetings with competitors such as the "Gary Dinners."
B)  despite the fact that U.S.Steel controlled 50 percent of output in the steel industry,the company had not achieved monopoly power.
C)  large corporations,by definition,violate the Sherman Act.
D)  the Sherman Act did not apply to U.S.Steel because steel manufacturing was an activity "clothed with a public interest."

Question 17

Recall the text's discussion of the ten largest U.S.industries by value added in 1860 and 1910.The emergence of tobacco products and malt liquors as major industries by 1910 suggests that

Accepted Answer

A)  these goods are highly income elastic.
B)  these goods are highly income inelastic.
C)  these goods are price inelastic.
D)  these goods exhibit economies of scale in production.

Question 18

By 1916,there were 340,000 corporations in the U.S.The growth in the number of corporations was partly due to

Accepted Answer

A)  increasing numbers of urban dwellers.
B)  the development of formal markets for stocks and bonds.
C)  the acceptance by most states of the doctrine of limited liability.
D)  mass production which led to lower per-unit costs for output.
E)  All of the above.

Question 19

"Taylorism" has been described as

Accepted Answer

A)  dehumanizing.
B)  the exploitation of labor.
C)  using science to increase production.
D)  All of the above are correct.
E)  Only b and c are correct. D

Question 20

Which of the following is an example of a horizontal merger?

Accepted Answer

A)  the consolidation of marketing,processing and purchasing departments by Armour Meat Company
B)  the purchase of E.C.Knight Company by American Sugar Refining Company
C)  the purchase of Colorado silver mines by the Tiffany Jewelry Company
D)  Federal Steel Company's alliance with American Bridge Company

Exam 17: Industrial Expansion and Concentration

A _________ is an agreement under which stockholders of several formerly-competing companies turn over their shares to a group that exercises voting control over the companies.

Correct AnswerverifiedShow Answer

As a means of gaining monopoly power,holding companies were preferable to gentlemen's agreements and pooling because

Correct AnswerverifiedShow Answer

In U.S.v.Addyston Pipe and Steel Company (1898) ,the Supreme Court ruled that

Correct AnswerverifiedShow Answer

Which of the following statements provides the most accurate description of the employment growth rate in various sectors of the economy between 1860-1910?

Correct AnswerverifiedShow Answer

The McCallum management principles advocate the use of

Correct AnswerverifiedShow Answer

The leading producer of manufactured goods in 1900 was

Correct AnswerverifiedShow Answer

John D.Rockefeller is most recognized for:

Correct AnswerverifiedShow Answer

Henry Ford is most recognized for:

Correct AnswerverifiedC

During the 1870s,___ surpassed ___ as the leading source of power.

Correct AnswerverifiedShow Answer

By the eve of World War I,the United States accounted for more than ___ of the world's industrial production.

Correct AnswerverifiedShow Answer

Henry Bessemer is most recognized for

Correct AnswerverifiedShow Answer

Which of the following statements presents accurate information about the Standard Oil merger?

Correct AnswerverifiedShow Answer

The term "________" denotes the adaptation of new technological ideas to existing products and services.

Correct AnswerverifiedShow Answer

Based on evidence from the turn of the century,the income elasticity of flour and meal

Correct AnswerverifiedB

In the late 1800s and early 1900s,the primary source of energy for manufacturing was

Correct AnswerverifiedShow Answer

In U.S.v.U.S.Steel Corporation,the Supreme Court ruled that

Correct AnswerverifiedShow Answer

Recall the text's discussion of the ten largest U.S.industries by value added in 1860 and 1910.The emergence of tobacco products and malt liquors as major industries by 1910 suggests that

Correct AnswerverifiedShow Answer

By 1916,there were 340,000 corporations in the U.S.The growth in the number of corporations was partly due to

Correct AnswerverifiedShow Answer

"Taylorism" has been described as

Correct AnswerverifiedD

Which of the following is an example of a horizontal merger?

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C

During the 1870s,_ surpassed _ as the leading source of power.

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B

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D

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