Inventions and Innovations
Thomas Edison is known for inventing what?
The lightbulb
What are stocks?
a share of ownership in a corporation which can be resold, transferred, or inherited.
What is an entrepreneur? Provide 2 examples of Industrial Revolution entrepreneurs
a businessperson, one who engages in business to make a profit.
Andrew Carnegie, John D. Rockefeller, Henry Flagler, JP Morgan, Cornelius Vanderbilt, etc
What are the differences between the First and Second Industrial Revolutions?
First-took place in England, based on steam power and canals. Mass production of goods in factories was the most important innovation.
Second-took place in the US, steam power eventually replaced with oil and coal. Corporations and assembly lines are important innovations.
What is government regulation?
During the Second Industrial Revolution, the government began making rules for how businesses were allowed (or not allowed) to operate.
How did the introduction of the Bessemer Process affect the American economy?
a) manufacturers could produce cheaper and better steel.
b) suppliers could now communicate instantly over long distances.
c) industrial workers successfully obtained shorter hours and other benefits.
d) entrepreneurs like John D. Rockefeller could refine petroleum more cheaply.
a) manufacturers could produce cheaper and better steel.
Describe the importance of Samuel Morse's invention, then identify the invention (and inventor) which replaced it.
the telegraph made long distance communication possible for the first time. it was eventually replaced by Alexander Graham Bell's telephone.
Which of the following is NOT an advantage of a large company or big business?
Economies of scale, more stringent government oversight, cheaper sources of supplies, more efficient management,
more stringent government oversight
Andrew Carnegie gained his wealth from what industry? What is the Bessemer process?
Steel industry, a new method of steel making which produced a higher quality steel at a cheaper cost.
Which of the following is NOT a factor that led to the Second Industrial Revolution?
Abundant natural resources, free enterprise system (capitalism), laissez-faire government, abundant labor supply, canals promote growth and make transportation easy, economic stimulus after the Civil War, new technologies
Canals promote growth and make transportation easy.
Railroads were the driving factor behind the Second Industrial Revolution.
What does laissez-faire mean? How was it used during the Second Industrial Revolution?
Laissez-faire means "hands-off". During the Second Industrial Revolution this was the approach the federal government often took toward business. The government allowed business to regulate and manage itself and did not impose regulations, or taxes and fees on them. The government did not interfere with in the relations between producers and consumers or with employers and employees.
What goal motivated Henry Flagler to build the Florida East Coast Railway?
a) to bring tourists to the luxury hotels he had built along the Florida coastline.
b)to create a refuge for people immigrating to the US from Latin America
c) to encourage the US government to build a canal in Panama
d) to build a "dream town" with money he made from his partnership with John D. Rockefeller
b) to create a refuge for people immigrating to the US from Latin America.
Which of the following inventors is NOT African-American or a woman?
Elijah McCoy, Sarah Goode, Henry Ford, Lewis Howard Latimer, Jan Ernst Matzliger, Garrett Morgan, Madam CJ Walker, Granville Wood
Henry Ford
Put the following in the proper order to describe the corporate hierarchy.
-who hire company employees
-elect a Board of Directors
-shareholders
-which appoints General Managers
Shareholders elect a Board of Directors which appoints General Managers, who hire Company Employees.
Who is Henry Flagler? How did he impact Florida?
*DAILY DOUBLE*
Henry Flagler made his wealth working with John D. Rockefeller and Standard Oil. After leaving the oil industry he started building hotels and later railroads to bring the wealthy to his hotels.
His railroads (Florida East Coast Railroad) connected the entire east coast of Florida from Jacksonville to Miami and later on to Key West. It brought wealthy tourists and settlers but also allowed Floridian farmers to ship their goods to the rest of the country.
What is a "transcontinental" railroad? When was the first completed? How many more were built?
transcontinental-across the continental United States (all states except Hawaii and Alaska).
First completed in 1869, four more lines built by 1893.
What is a monopoly?
A monopoly is when one company has complete control over the production of a good or service without any competitors.
These steps are performed by a single company.
Hog Farms-->Slaughterhouse-->Transport pork products using refrigerated railroad car
What was the chief advantage to the company of this method of organization as a new business practice?
a)its workers could organize into a single labor union
b)it could perform additional work for other companies
c)it could perform additional work for other companies
d) it could strictly control costs at every step of production.
d) it could strictly control costs at every step of production
What invention is Samuel Morse credited with?
Telegraph
Describe vertical and horizontal integration and provide an example of each. Which industrialist is credited with each process?
Vertical integration-when an company gains control over all stages of the production and distribution process, made famous by Carnegie.
Horizontal-when one owner controls all companies and facilities at one stage of production, made famous by Rockefeller.
Examples will vary.
Describe Andrew Carnegie, his business practices, and his philanthropic activities.
King of the steel industry, responsible for vertical integration. His poor treatment of his workers and unions are infamous, such as the Homestead Strike in 1892. After retiring he devoted his life to charity work, spending millions of dollars starting things like public libraries and Carnegie Hall in New York City.
Describe the free enterprise system and how it contributed to the start of the Second Industrial Revolution.
Also known as capitalism, free enterprise is a system where the means of production are owned privately. People are free to buy and sell goods and their labor on the open market. This system emphasizes hard work, entrepreneurship, economic growth, and innovation as the keys to success.
Why are monopolies bad for the general public?
Because there is no competition, monopolies can raise prices as much as they want and consumers must pay because there are no alternatives. Monopolies also have no incentive to improve their products so quality suffers.
Which business practice led to the passage of the Sherman Antitrust Act (1890)?
a) some businesses established monopolies over their industries.
b)railroads unfairly charged more for "Short hauls" than for "Long hauls"
c) a large number of business owners refused to let their workers join labor unions.
d) corporations were generally able to raise more capital than individual entrepreneurs.
a) some businesses established monopolies over their industries.
Who was awarded a patent for his machine which attached the upper part of the shoe to the bottom (the sole)? What was the machine's impact?
Jan Ernst Matzeliger
Increased the amount of soles a worker could attach in a day (from 50 to 150-700) which led to a dramatic drop in price for shoes (price dropped by half)
Why did the corporation become the predominant way to run business during the Industrial Revolution?
-entrance into the new industries (railroad, oil, steel, etc) was to expensive for individual investments.
-Selling stocks allowed corporations to raise greater sums of money than ever before and afford the price of entry and necessary upgrades.
-Corporations are separate legal entities. No one person is liable if the corporation fails so it is less risky. The risk is divided amongst the shareholders.
Describe John D. Rockefeller, his business practices, and his philanthropic work.
King of the oil industry and one of the richest men in the world at the time. He is famous for horizontal integration and backroom deals with railroad companies (lower prices for him, higher prices for competitors to drive them out of business). Started The Standard Oil Trust (one of the first and most famous monopolies).
After retirement he dedicated money to fund education and the sciences.
How did railroads contribute to the Second Industrial Revolution?
*DAILY DOUBLE*
-Building railroads kickstarted the demand for coal, iron, and steel industries
-Building railroads provided jobs for thousands of people across the US
-Cheaper transportation costs allowed for economic growth across the US and the birth of the "national market"
-Time zones developed to ensure smooth railroad schedules
-Urbanization made possible by railroads-people began cheaply travelling to cities looking for employment.
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How did monopolies influence government regulation?
In order to protect consumers, the federal government began making laws to regulate monopolies and business practices.
Interstate Commerce Act (1887)-Railroads no longer allowed to charge different prices. All customers were required to pay the same rates.
Sherman Antitrust Act (1890)-all monopolies, trusts, and combination companies are illegal and can be broken up by the government if they exist.
In 1885, Sarah Goode became one of the first African-American women ever to receive a US patent when she received a patent for her fold-away bed. What did her achievement demonstrate?
a) Despite the obstacles they faced, African-American women made contributions to the Second Industrial Revolution.
b) In the 19th century, women paid more attention to living conditions than men did.
c) At that time, married women were unable to claim ownership of their own inventions.
d) in the 1880s, there was only limited interest in making household goods.
d) in the 1880s, there was only limited interest in making household goods.