Exam 3 - Fall 2014 Code Name:
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1 Exam 3 - Fall 2014 Code Name: Part 1: The details (70 points. Each question is worth 2 pts each unless noted.) # s 1 4: Miguel is touring an historical site, one of the earliest factories to be built in the United States. 1. What did this factory likely produce? a. cast iron b. sawn lumber (boards) c. cotton textiles d. boots e. lace trim f. paper 2. In all likelihood, where is this factory? a. Maine, near the Canadian border b. New England, (Rhode Island or MA) c. Between Philadelphia and New York City d. In upstate New York near lake Ontario e. On the coast of Virginia or Maryland f. On the South Carolina coast 3. If this really is one of the first factories to be built in the United States, when was it built? a b c d e f What power source was likely powering this early U.S. factory? a. a steam engine d. electricity generated by a steam engine b. a water wheel e. electricity generated by a water wheel c. hand cranked machines f. a mule or oxen mill 5. Which of the following best describe the putting out system? a. Britain relied on temporary Irish and Flemish labor to operate most of her factories. b. one individual would oversee large amounts of production, but the individual production processes would take place in individual homes and workshops c. an inventor would retain the sole license to build his or her machines. The inventor would then rent the machines to other people and businesses. d. Britain used her colonies for raw materials, then further processed those materials in Britain. 6. Which of the following a reason to build a factory according to the film; Pants For All? a. to protect and keep secret the equipment inside the factory b. French troops raided England burning homes, but leaving large, well-defended structures alone. c. Parents thought factories would provide their children better learning than working at home. d. Taxes were based on what an individual produced, but not what their workers produced. 7. Which of the following is another reason early factories were first built? a. New inventions greatly increased efficiency, but also required very large scale production. b. The invention of coal fired kilns meant the price of bricks fell to about 25% of their former cost. c. In the late 1700 s, inventors learned to mount water wheels vertically rather than horizontally. d. The British military found it easier to procure supplies from large suppliers. 1
2 8. Which of the following likely explains why the South had much less manufacturing than the North did in the 1800s? a. Southern states refused to charter corporations until after the Civil War b. The South lacked the potential for much water power c. Slave based cotton production was a more profitable for free Southerners. d. Slave labor was found never to work well with manufacturing systems. # s 9 11: Cobie and Layne 1 have never, ever, seen the device below and are curious about it. Help them out by answering the questions below. 9. What is the name of the machine at right? 10. What is this machine making or doing? Be as specific as possible? 11. What is the name of circled part(s)? 12. Marie is touring a U.S. textile mill (i.e. factory) that was built and operated around What type of labor was the mill likely using for most of its workforce? a. local temporary (in between the harvests) labor d. African-American slave labor b. temporary contract workers from Italy e. local (free white) women c. temporary contract workers from the Caribbean f. Irish immigrants # s 13 14: Marcus is visiting an historic site. This site made an iron-based metal in the mid-1700 s that could be cast into shapes such as pans and fire-backs. 13. What piece of technology is likely at the center of this site? a. a bloomery c. a Bessemer converter b. a water frame d. a blast furnace e. an open hearth furnace f. a Spinning Jenny 14. What type of iron-based metal was likely made at this site? a. cast iron b. aluminum c. steel d. wrought iron 15. Which of the following best explain the Bessemer process? a. Molten cast iron is poured into a container. Air is blown through the molten metal. Oxygen in the air reacts with the carbon to reduce the amount of carbon in the metal. b. Iron ore and lime, are burnt in a furnace using charcoal or coked coal as fuel. The ore and lime are in contact with the fuel. Air is blown through the furnace to sustain combustion. c. Iron ore is heated but not melted. While hot, it is pounded to remove impurities & shape the iron. d. Wrought iron and cast iron are placed in clay crucibles. These crucibles are placed in a furnace until the metals (but not the clay) melt and combine. 1 Disclaimers: While this question is a work of historical fiction, and is therefore based on real events, the names have been changed to protect the innocent. No animals were harmed in the making of these questions. 2
3 # s 15 1 / 3-25: (1 pt each) Match each characteristic with the type of metal, or metals, it describes. The first two rows have been done for you. Characteristic Cast Iron Aluminum Titanium Steel Wrought Iron Copper 15 1 / 3. Conducts electricity 15 2 / 3. Rhymes with Popper 16. Has a very high carbon content, ex. 2% to 4% 17. Too brittle for most applications 18. Generally considered the optimal range for Ferrous metals 19. Made in a blast furnace 20. Has a very low carbon content, ex. 0.05% to 0.2% 21. Made in a Bessemer converter 22. Made in an Open-Hearth furnace 23. Has a moderate carbon content, ex. 0.2% to 2.0% 24. Also called Pig Iron 25. Why is the Bessemer process of interest to economic historians? The Bessemer process: a. led to the first modern (type C) corporation. This new business type facilitated the growth of very large firms. b. was the first instance in which coal was used in a major manufacturing process. The Bessemer process opened the door to much greater energy usage. c. led to what is considered the first effective patent legislation in the United States. d. meant lower production costs but only if a firm adopted a very large scale of production. The Bessemer process was one of several technical changes giving rise to very large firms. # s 26 31: Often, the Industrial Revolution is broken down into the 1 st and 2 nd Industrial Revolutions. 26. When, roughly, did the U.S. experience the 1 st Industrial Revolution? a b c d e f g present 3
4 27. When, roughly, did the U.S. experience the 2 nd Industrial Revolution? a b c d e f g present 28. List the power source that usually powered the 1 st Industrial Revolution? 29. List one major power source that stereotypically powered the 2 nd Industrial Revolution? (There are a couple of ways to say this. i.e. I ll take a few different answers as correct.) 30. What is the archetype industry of the 1 st Industrial Revolution? 31. What is an archetype industry of the 2 nd Industrial Revolution? (There are a couple of ways to say this. i.e. I ll take a few different answers as correct.) # s 32 39: It s matching time!!!! (1.5 points each) 32. The Clayton Act 33. The Interstate Commerce Act 34. The Sherman Anti-Trust Act 35. Munn v. Illinois 36. U.S. v Alcoa 37. U.S. v Standard Oil 38. U.S. v. U.S. Steel 39. Wabash Railroad v Illinois a. The U.S. switched from a behavioralist approach to a structuralist approach. b. The start of federal regulation. The 1 st regulatory act passed by the National government c. A near monopoly was not busted up. A behavioralist approach was adopted. d. Specified certain actions, namely actions regarding pricing, that were illegal. e. Resulted in the national government, rather than state governments, being the in charge or regulating railroads f. Declared that businesses could be regulated by government if they had a public aspect g. First time a near monopoly was busted up by the Federal government h. Declared that restraints of trade are illegal, but did not specify what exactly constituted a restraint of trade i. Declared that U.S. law should only look at firms operating in the U.S. when making anti-trust judgments j. Declared that U.S. law should look at both U.S. and foreign operations when making anti-trust judgments 40. Brandon is a lawyer and political activist living in the U.S. in the year He is lobbying for government regulations of (various practices of) railroads and other large firms. Is there any precedent for government regulation of business in 1866? a. No. There are few if any examples of government regulation American business prior to b. Yes. The recently passed Sherman Act allows the government to regulate business although the act does not specify how. c. Yes. England, American colonies, and U.S States had various business regulations prior to d. Yes. The 14 th Amendment to the Constitution created the Federal Trade Commission, a government agency designed to make sure trade practices are fair. 4
5 41. What, in the U.S. Constitution, serves as the basis for the federal government s authority to regulate businesses? a. the 4 th amendment which guaranteed the protection of property from unjust government seizure and mercantile harm b. the 14 th amendment which guaranteed all people the rights of citizens including protection from unjust mercantile practices c. the interstate commerce clause d. the war powers clause, in particular defense establishment during peacetime phrase Essay Question : Answer 1 of the questions below (30 points). 1. What was the main type of labor used in the early U.S. textile industry? Why did early firms choose this type of labor? Who came up with this hypothesis? When and why did firms shift to other types of labor? 2. Why, in broad terms, is the regulation of business by governments, especially the U.S. national governments a phenomena that started in the late 19 th and early 20 th centuries? What changed in the second half of the 1800 s? What was different, especially in broad economic terms, about industry in the late 19 th century compared to industry in the early 19 th century (and before). What dilemma does the above change present to economists and policy makers? Explain your answer. Heck, you could even get crazy and include a graph. Also, make sure you illustrate this dilemma with an example or two. 5
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