Industrial Age Economic Theories and Practices

The video explores the Industrial Age, focusing on big business and labor. It highlights Andrew Carnegie's rise from an immigrant to a steel magnate through innovative business strategies like vertical and horizontal integration. The concept of Social Darwinism is discussed, explaining wealth disparities. The video also covers the formation of monopolies and trusts by industrialists like Rockefeller and the government's response with the Sherman Anti-Trust Act. Despite their ruthless tactics, many industrialists were also philanthropists.

What was one of the key strategies Andrew Carnegie used to dominate the steel industry?

• Investing in real estate

• Vertical and horizontal integration

• Outsourcing labor to other countries

• Focusing solely on marketing

What does vertical integration involve?

• Focusing on a single product line

• Investing in foreign markets

• Purchasing companies at all levels of production

• Buying out competitors in the same industry

How did horizontal integration help companies like Carnegie's?

• By diversifying product lines

• By reducing production costs

• By increasing employee wages

• By eliminating competition

What theory was used to justify the wealth of industrialists during the Industrial Age?

• Keynesian economics

• Supply-side economics

• Social Darwinism

• Trickle-down economics

Who was known for promoting the 'rags to riches' success story?

• Andrew Carnegie

• John D. Rockefeller

• JP Morgan

• Horatio Alger

What is a monopoly?

• A company that focuses on international trade

• A company that has complete control over an industry's production, wages, and prices

• A company that controls all aspects of production

• A company that invests in multiple industries

How did John D. Rockefeller achieve control over the oil industry?

• By creating a trust with competing companies

• By forming a holding company

• By focusing on retail sales

• By investing in renewable energy

What was a common tactic used by industrialists like Rockefeller to eliminate competition?

• Paying high wages to employees

• Underselling competitors and then raising prices

• Focusing on customer service

• Investing in technology

What was the purpose of the Sherman Anti-Trust Act?

• To regulate labor unions

• To encourage mergers between large corporations

• To make it illegal to form trusts that interfered with free trade

• To promote international trade

Why was the Sherman Anti-Trust Act initially ineffective?

• It was too expensive to enforce

• It was poorly written and cases were thrown out of court

• It was not supported by the public

• It was only applicable to small businesses