7
lesson pretestMultiple Choice

Pretest

Question 7 • United States History and Geography

How did John D. Rockefeller vertically integrate his monopoly in 1882?

Answer
A
He purchased iron mines around the country to add to his business.
B
He purchased coal plants around the country to add to his business.
C
He created a trust that controlled ninety percent of the nation's oil refineries.
D
He created a trust that controlled oil wells, refineries, and distribution networks.

Explanation

Vertical integration means controlling multiple stages of production and distribution, from the source of a product to its delivery to customers. Rockefeller’s 1882 trust brought oil wells, refineries, and distribution networks under common control. The choice about controlling 90 percent of refineries describes a narrower kind of control, not the full range of stages.

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