test 2 study guide

test 2 study guide - 1. Use Tables 17.1 and 17.2 to...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1. Use Tables 17.1 and 17.2 to describe late-19 th century growth in both the labor force and output across various sectors of the economy. In which sectors was productivity growth greatest? The labor force was increasing at a rate of 3.4 times the amount the labor force in 1860. the railroad industry was growing the most rapidly with a 23.2 times increase since 1860. the railroad industry was also the quickest to expand at a rate of 98.1 times the rate of expansion in 1860. 2. What is “valued added?” Use Table 17.5 to describe changes in value added per worker in the reunification period. Why does value added per worker tend to be higher in capital-intensive, “high-tech” industries? Use examples from Table 17.5 to illustrate your answer. Value added is the total value of output minus material costs. Value added per worker is the total value added divided by number of workers, and reflects both labor and capital productivity. The output increases when technology is involved so value per worker increases two fold when technology is involved. The value added per worker in the reunification era increased dramatically. 3. Use examples from Table 17.3 to show how changes in the major U.S. industries (ranked by value added) mirrored changes in the US economy and society. How did the #1-ranked good change between 1860 and 1910? What goods were on the list of top industries in 1860, but no longer included in 1910? What new industries were added to the list in 1910? Use the concept of income elasticity to explain the declining position of goods like flour and woolen goods and the increasing position of goods like malt liquors and tobacco. the value added increased in technological industries such as machinery because the US was changing from an agricultural economy to a technological economy. The number one ranked good went from being cotton to machinery. The industries that no longer existed in the value added section in 1910 were flour and meal, woolen goods, carriages and wagons, and leather. Industries that were added to the list in 1910 included printing and publishing, steel, malt liquors, tobacco manufacturures, and railroad cars. People were getting paid more, their incomes were rising so they were allowed to spend more money on leasure items such as malt liquors and tobacco. 4. How did technological changes (both invention and innovation) fuel late-19 th century manufacturing growth? Give particular attention to technological changes in the steel industry, as described in Economic Insight 17.1. Technological changes created more efficiency in industry and allowed for a faster and cheaper way of production. The steel industry went from using the Bessemer method to using the open- hearth method. 5. What are the two components of mass production? How does mass production allow for firms
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 7

test 2 study guide - 1. Use Tables 17.1 and 17.2 to...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online