SOL REVIEW

1
SOL REVIEW

• Economic History

2
What was the major reason for the settlement of
Virginia and the other Southern colonies?

• Economic Opportunity

3
What became the cash crop of the Virginia colony?

• Tobacco

4
Name four characteristics of the economy of the
New England colonies?

• Shipbuilding
• Fishing
• Lumbering
• Subsistence Farming

5
Name three characteristics of the economy of the
Middle Colonies?

• Shipbuilding
• Small farms
• Trading

6
What was the economic basis of the Southern
colonies?

• Cash crops raised on large Plantations

7
What were the three cash crops of the Southern
colonies?

• Tobacco
• Rice
• Indigo

8
What were the two cash crops in South Carolina?

• Rice
• Indigo

9
Which English colonies believed in private
property and free enterprise (profit)?

• ALL

10
What is a tariff?

• A tax on imports

11
What is another name for a tariff?

• Customs Duty

12
What is revenue?

• Tax Money

13
What is a monopoly?

• Complete Control
• Absence of Competition
• No Competition

14
What does interstate commerce mean?

• Trade between states

15
What were two trends in American life during the
first half of the 19th century?

• Westward Movement
• Economic Development

16
What two transportation improvements encourage
westward movement and economic development?

• Canals
• Railroads

17
Who invented the cotton gin?

• Eli Whitney

18
What did the cotton gin cause to spread
throughout the Deep South?

• The Cotton Kingdom based on African-American
  slavery

19
Did the cotton gin increase or decrease the
demand for slaves?

• Increased

20
Between 1800 and 1850, what region developed an
industrial economy based on manufacturing?

• The North

21
Between 1800 and 1850, what region developed an
industrial economy based on manufacturing?

• The North

22
Which region favored high protective tariffs?

• The North

23
Define protective tariffs.

• Taxes on imports which are so high that Americans
  cannot afford to buy foreign goods

24
What was the basis of the Souths economy?

• Agriculture (Farming)
• Plantations that used slave labor

25
Did the South support or oppose high tariffs?

• Opposed

26
Why did the South oppose high tariffs?

• Made manufactured goods more expensive

27
What were economic and social results of
Reconstruction?

• South was devastated and bitter.
• North and Midwest had strong industrial economies.

28
What transportation improvement was completed in
1869?

• 1st Transcontinental Railroad

29
What did the transcontinental railroad do?

• Linked the Atlantic and Pacific Oceans by Rail

30
What was the 1862 Homestead Act?

• Law that gave free public land to settlers in the
  western territories
• Settlers promised to live on and farm this land
  for five years

31
What 2 new technologies in the late 19th century
opened new Western lands?

• Railroads
• Mechanical Reaper harvested wheat

32
What did Chinese immigrants help build?

• Transcontinental railroad

33

• What are two advantages of a corporation?
• 1) Raise capital 2) Limited Liability

34

• What 18th century Scottish philosopher developed
  the laissez faire economic theory?
• Adam Smith

35

• Who wrote Wealth of Nations?
• Adam Smith

36

• What does laissez faire mean?
• An economic philosophy that says government
  should leave business alone let business do what
  it wants. Government should neither help nor
  hinder business.

37

• What does anti-trust mean?
• Anti-monopoly

38

• What was the major weakness in the Sherman
  Anti-Trust Act?
• The wording was too vague.

39

• What is a labor union?
• An organization of workers

40

• In what major strike in the 1890s was the
  American Railway Union involved?
• The Pullman Strike

41

• Who won the Pullman Strike? The Pullman Company
  or the American Railway Union
• the Pullman Company

42

• What labor union was involved in the 1892
  Homestead Steel Strike?
• The AF of L (American Federation of Labor)

43

• What union was blamed for the 1886 Haymarket Riot
  in Chicago?
• The Knights of Labor

44

• What did the term trust mean during the late
  19th and early 20th centuries?
• A business monopoly

45

• What does the term monopoly mean?
• Absence of Competition

46

• What industry was made more efficient by the
  development of the Bessemer process?
• Steel

47

• Which side did government take in both the
  Haymarket Riot and the Pullman Strike? Big
  Business or Labor?
• Big Business

48
Define imperialism.

• One country gaining political or economic control
  over another country

49
What was the Open Door Policy?

• All nations would have equal trading rights in
  China

50
What president was known for Dollar Diplomacy?

• William Howard Taft

51
What was Dollar Diplomacy?

• U.S. business would invest in Latin America
• If necessary, U.S. would intervene militarily in
  Latin America

52
Name 3 examples of American economic imperialism.

• Open Door Policy
• Dollar Diplomacy
• Panama Canal

53

• Who were the Muckrakers?
• Progressive writers who wrote about social and
  political evils in late 19th and early 20th
  century America.

54

• What did the Clayton Anti-Trust Act?
• 1) Outlawed price fixing Exempted unions from
  the Sherman Anti-Trust Act

55

• Which 19th century American labor union has
  survived until the present day?
• The A F of L. Today it is known as the AFL-CIO.

56
What is inflation?

• When prices increase and the dollar buys less

57
What functions as the central bank of the United
States?

• The Federal Reserve System

58
What controls the nations money supply?

• The Federal Reserve

59
What does the Federal Reserve do to stop
inflation?

• Raise interest rates

60
What does the Federal Reserve do if it believes
the economy is overheating and causing inflation?

• Raises interest rates

61
What does the Federal Reserve do if it believes
the economy is slowing down?

• Lowers interest rates

62
What is the largest stock market in the United
States?

• The New York Stock Exchange

63
What is speculation?

• Buying something at a low price in the hope of
  selling it later at a profit

64
What does it mean to buy stock on margin?

• Buy stock on credit

65
What event triggered the Great Depression?

• The Stock Market Crash

66
What is a protective tariff?

• A tax on imports that is so high that Americans
  cannot afford to buy foreign goods

67
What was the Hawley-Smoot Tariff?

• Protective Tariff
• the Highest Tariff Rates in History

68
What were 3 causes of the Great Depression?

• Overspeculation in stocks
• Collapse of the banking system
• Hawley-Smoot Tariff

69
What were 4 effects of the Great Depression?

• Unemployment and homelessness increased
• Bank Closings -- the collapse of the nations
  financial system
• Political Unrest
• Farm Foreclosures

70
What was the purpose of the New Deal Relief
programs?

• Ease the Suffering of the Unemployed

71
What was the purpose of New Deal Recovery
programs?

• Help Business Recover

72
Identify FDIC.

• Today insures bank deposits up to 100,000

73
For what does FDIC stand?

• Federal Deposit Insurance Corporation

74
For what did the Social Security Act provide?

• Unemployment Insurance
• Old-Age Pensions

75
What 3 rights did Organized Labor gain during the
New Deal?

• Right to form a Union
• Right to Strike
• Minimum Wage

76
Since the New Deal, who do Americans hold
responsible for bringing prosperity to the U.S.
economy?

• The federal govt., especially the President

77
Identify the 1964 Civil Rights Act?

• Outlawed racial, religious, and sex
  discrimination in public places and by employers
  No Job discrimination
• Gave the federal government more power to enforce
  all civil rights laws