During the colonial period, commodities that could only be exported legally to Britain were known as _______.
a. Foxwell goods.
b. tariff goods.
c. scot-free goods.
d. enumerated goods.
Question 2John D. Rockefeller is most recognized for:
a. developing the oil industry.
b. being an early promoter of the computer industry.
c. lobbying the government for the abolition of slavery.
d. inventing new technology to further the steel production process.
e. being an initial supporter of minimum wage laws.
Question 3Under the British Navigation Acts, enumerated goods were a list of colonial _______.
a. exports showing how dependent the British were on the colonies.
b. imports showing how dependent the colonies were on Britain.
c. exports that had to be shipped through British middlemen.
d. exports that were reserved for the crown.
Question 4Which of the following is an example of a horizontal merger?
a. the consolidation of marketing, processing and purchasing departments by Armour Meat Company
b. the purchase of E.C. Knight Company by American Sugar Refining Company
c. the purchase of Colorado silver mines by the Tiffany Jewelry Company
d. Federal Steel Company's alliance with American Bridge Company
Question 5Which of the following positions might be taken by the ruler of a nation practicing mercantilism?
a. support of the merchant marine sector
b. support for the elimination of trade barriers such as tariffs
c. support for the reduction of government holdings of specie
d. discouragement of exploration and colonization
e. All of the above.
Question 6A horizontal merger
a. combines similar firms that serve separate markets.
b. combines firms that produce similar products.
c. enables a company to control each stage of the production process: from raw materials to the final marketing of the product.
d. enables similar firms to form a cartel.
Question 7Mercantilism was an economic policy that called for
a. the use of taxes and subsidies to control trade.
b. leaving economic decisions to the free market.
c. laissez faire.
d. the elimination of private property.
Question 8Which of the following statements best describes the concentration movement between 1875-1905?
a. There were two phases, the first of which had relatively more horizontal mergers and the second had relatively more vertical mergers.
b. The first phase focused on vertical mergers, the second was a period of relative inactivity in acquisitions, and the third decade was one of horizontal mergers.
c. There were three phases, the first of which had relatively more vertical mergers and the second had relatively more horizontal mergers.
d. There were two waves of mergers. In the first wave most mergers were motivated by the desire to obtain monopoly profits and the second wave was obtained through greater economies of scale.
Question 9Mercantilists wanted a favorable balance of trade, by which they meant
a. exports = imports.
b. exports > imports.
c. exports < imports.
d. To import nothing from the colonies.
Question 10A _________ is an agreement under which stockholders of several formerly-competing companies turn over their shares to a group that exercises voting control over the companies.
a. trust
b. gentleman's agreement
c. holding company
d. pooling arrangement
Question 11Mercantilists believed that national military power could be achieved best by _______.
a. confiscating church lands and selling them to private businesses.
b. freeing business from government regulation.
c. having the government supply the infrastructure for the economy, while leaving private enterprise alone in other spheres.
d. strictly regulating economic life.
Question 12As a means of gaining monopoly power, holding companies were preferable to gentlemen's agreements and pooling because
a. holding companies did not have an adverse impact on employment.
b. holding companies were able to reduce competition from imported goods.
c. holding companies were legal in most states.
d. holding companies were not subject to corporate profits taxes.
Question 13England's mercantilist principles:
a. were active from the early 1600s.
b. were active from the early 1700s.
c. were a response to Spanish tariffs.
d. were pursued by Charles II after 1685.
Question 14By 1916, there were 340,000 corporations in the U.S. The growth in the number of corporations was partly due to
a. increasing numbers of urban dwellers.
b. the development of formal markets for stocks and bonds.
c. the acceptance by most states of the doctrine of limited liability.
d. mass production which led to lower per-unit costs for output.
e. All of the above.
Question 15Which of the following most accurately describes what the text says about mercantilists?
a. They tried to build up the military power of their economies.
b. They tried to produce full employment.
c. They confused gold and silver with true wealth.
d. They were merely spokesmen for special interest groups.
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