AnswersEAP-Virginia and US History A CRNew American Industries

Monopolies and Trusts Answers

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Which statement is true about the relationship between a monopoly and its competition in a market?

A
Monopolies are formed when businesses buy out their competition in a market.
B
Competition in the market helps monopolies to develop.
C
Competition in the market ensures that monopolies charge fair prices.
D
Monopolies thrive when they have competition.
2
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How do monopolies affect the price of goods?

A
Monopolies always result in higher consumer prices.
B
Monopolies always result in lower consumer prices.
C
Monopolies have no effect on the cost of goods.
D
Monopolies can lower and raise their prices at will.
3

What was the core business that made Standard Oil a horizontally integrated monopoly?

A
refining oil
B
transporting oil to customers
C
building oil pipelines
D
finding new uses for oil
4

How was Rockefeller able to build his monopoly across the oil industry?

A
He bought up oil refineries, cut costs, and reinvested his profits in other refineries.
B
He confined his business to Ohio so he could buy all the refineries there.
C
He found newer and cheaper ways to refine oil, increasing his profits.
D
He began to sell kerosene as well as oil, expanding his market.
5

What business practices contributed most to Andrew Carnegie’s ability to form a monopoly?

A
combining his companies into one company and controlling all aspect of steel production
B
focusing on a single aspect of steel production
C
using profits to support charities and greatly improving his reputation
D
increasing his profits every year
6

What is the main reason that the American public turned against monopolies?

A
They saw the price of goods rise as their wages decreased.
B
They saw the price of goods rise as their wages increased.
C
They resented the wealth of the big business owners.
D
They were concerned about smaller businesses.
7

Which business practice did Rockefeller repeatedly use that helped him succeed in building his oil monopoly?

A
In all his businesses, Rockefeller made a profit and used it to expand or buy other businesses.
B
With every business Rockefeller bought, he would learn about it, sell it at a profit, and buy another business.
C
With every purchase of a refinery, Rockefeller would add new products to his business.
D
In all his businesses, Rockefeller made sure that he controlled all aspects of production.
8

A government is laissez-faire when it

A
does not interfere with business affairs and does not regulate its actions.
B
fairly regulates businesses.
C
leaves workers alone and doesn’t regulate unions.
D
fairly regulates workers.
9

What was the main reason that Carnegie invested in the Frick Coke Company?

A
He wanted to make sure he could always get fuel for his steel plant.
B
He thought he could help the company become profitable.
C
He wanted to invest in new technology.
D
He was interested in the coal business.
10

Why was Carnegie Steel able to offer its product more cheaply than its competitors?

A
Carnegie made an inferior product, so it was less expensive to produce.
B
Carnegie cut corners in his production, lowering his costs.
C
Carnegie could cut his costs because he owned the supply of raw materials and the means of production and distribution.
D
Carnegie avoided using the Bessemer process, decreasing the cost of production.

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