Prior to the 1880s, federal government control over the daily operations of private economic activity (a) was important but not as important as during the 1880s and following decades. (b) was virtually nonexistent; state and local governments handled any regulation or business management. (c) was important, but in the 1880s and following decades, it became […]
“External economies” derive from all of the following except (a) the joint use of transportation facilities. (b) labor force concentrations in urban areas. (c) social overhead facilities such as police and fire protection. (d) economies of management associated with large firms. ANSWER (d)
Two court cases that applied to the regulation of business were Munn v Illinois (1877) and Nebbia v New York (1934). Regarding these two cases, which of the following is true? (a) The former case, in effect, gave the federal government more comprehensive powers to regulate business than the latter case. (b) The latter case […]
Which of the following was NOT a part of Chandler’s (1977) description of the rise of big business in the 19th century? (a) Vertical integration of firms (b) The development of mass production (c) The development of mass distribution (d) The use of central planning to improve production techniques ANSWER (d)
Between 1860 and 1914, the concentration of industrial power did increase. What did members of the general public perceive to be the result of this heavy concentration? (a) Expanded output (b) Lower prices (c) A transfer of income away from consumers toward big businesses (d) All of the above ANSWER (c)
The growth of cities was due to the existence of important scale economies, which include all of the following except (a) Central water and sewer systems (b) Education systems (c) Crime, congestion and pollution (d) Police and fire protection ANSWER (c)
The proportion of Southern farms relying on slaves rose between 1840 and 1860 . Plus, the scale economies of slavery aggravated the chronic shortage of good Southern farmland. Indicate whether the statement is true or false ANSWER FALSE
According to Chandler (1977), the major event in business development in 1895–1904 was (a) the Granger cases. (b) Munn v Illinois (1877). (c) the rise of vertically integrated firms. (d) the merger wave. ANSWER (d)
Why do historians argue that there was a mixture of enterprise, partly private and partly governmental, in building our transportation system? (a) Private individuals took the initiative and were able to extract special privileges and financial assistance from government for the purpose of enhancing their profits. (b) Political leaders, who wanted transportation improvement for reasons […]
What was the first federal government agency established to regulate business? (a) The Federal Trade Commission (b) The Securities and Exchange Commission (c) The Federal Power Commission (d) The Interstate Commerce Commission ANSWER (d)
