6.2 Study Guide

Question Answer
Capitalism An economic system that lets each specific place determine the price of their goods.
Free Enterprise Supply and demand determine how things and how much are produced.
Communism Economic system where everyone in the community owns rights to everything in the community, nothing is individual.
Social Darwinism Idea that the fittest would survive, whether that is with people, businesses, and/or society.
Corporation Organizations that sell shares of the company to make money.
Trust Companies give stocks to a board (or group) of people called trustees. The trustees then run all the companies as one enterprise.
Monopoly When a company has little to no competition with a product, they control the cost of the good.
Vertical Integration A process where someone also buys a mine to get the raw materials for what they need, with no middle man.
Horizontal Integration One company controls another company that produces the same product.
Cornelius Vanderbilt He started with a shipping company, stopped for the Civil War, and then got into railroads.
George Pullman He designed and manufactured railroad cars and rails. Railroad tycoon also.
Horatio Alger Jr. Author during the Second Industrial Revolution. He wrote books talking about individualism.
Andrew Carnegie A businessman that was a strong supporter of stocks, bonds, and other professional things. He often spoke out about it.
John D. Rockefeller Started a career in foods then moved on to oil refinery. He was a business tycoon.