land or natural resources labor or workers capital & capital goods

Land or Natural Resources

Labor or workers Capital & Capital

goods

U.S is lucky to have an abundance of natural resources!

1. minerals/oil 2. timber 3. crops 4. water

U.S. needs lots of workers for its new factories

U.S. encourages immigrants to come to America

Between 1860-1900 U.S. population doubles

Manufactured goods used to make other things

1. machines 2. factories 3. tools

Money for investing Birth of corporations:

(A company that sells shares or stock to the public )

People who invest/ buy stock are considered shareholders: partial owners

When the company makes money they give shareholders dividends: cash payments

WRITING ASSIGNMENT

• Thursday September 11, 2014• 3-2-1 on factors of production:• • 3 list/describe each factor• • 2 give two examples of each factor• • 1 explain why all 3 factors are necessary

for the successful production of goods

John D. Rockefeller creates Standard Oil

He uses Horizontal Integration: purchase of competing companies in same industry

He creates a trust: group of companies managed by the same board of directors

This will drive out his competition creating a monopoly: total control of an industry by a single producer

Andrew Carnegie becomes leader of steel business

He uses vertical integration: purchase of companies at all levels of steel production

1. Iron/coal mines 2. Warehouses 3. Ore ships

4. Railroads

Mergers: the combining of

companies caused several problems for consumers and workers:

1. No competition 2. High prices of

goods 3. Poor work

conditions Sherman Antitrust

Act: government tried to outlaw trusts & monopolies

WRITING ASSIGNMENT

Use text evidence to describe the differences between vertical & horizontal integration.