OGT Question of the Day: Monopolies and Progressives
One development in the U.S. economy that occurred as a result of industrialization was the growth of business monopolies.
· Explain one advantage of monopolies from a business perspective.
· Explain one reason why Progressives in the early 1900s sought government action to control monopolies.
Write your answer in the Answer Document. (4 points)
Explanation of Correct Answer
For businesses, monopolies are advantageous because they control an entire industry or market and prevent competition; therefore, the monopoly can charge higher prices for goods and services and the business can make a larger profit. The Progressives wanted to control monopolies and prevent their formation so that there was competition, which would allow for new products and services with lower prices.
See Scoring Guidelines for This Question
Points / Student Response /4 / The response provides a complete explanation of each part of the question (e.g., one advantage of monopolies is stated and shown how it was an advantage from a business perspective and one reason is stated as to why Progressives sought government control as a solution to abuses from monopolies.)
3 / The response provides a complete explanation of one part and a partial (e.g., “monopolies reduced business competition” or “Progressives thought monopolies would not control themselves”) explanation of one part.
2 / The response provides a complete explanation of one part only or partial explanations of each part.
1 / The response provides a partial explanation of one part.
0 / The response does not meet any of the above criteria. The response indicates inadequate or no understanding of the idea or concept needed to answer the item. It may only repeat information given in the item. The response may be incorrect, or the provided information may be totally irrelevant to the item.
See Student Sample Answers
4 Point Sample AnswerThe response provides a complete explanation of the advantage of business monopolies (“that business is controlling everything and can decide the prices for everything”). The response also provides a complete explanation for the opinion of the Progressives (“the businesses had been jacking-up prices of goods and due to demand of the goods people were forced to buy these products at ridiculous prices”).
3 Point Sample Answer
The response completely addresses the advantage of monopolies (“the monoplies could shut down other smaller stores and make alot of money”). The response partially explains the concerns of the Progressives but not how they would counteract the concern (“they were getting to big, making to much money, and becoming to powerful”).
2 Point Sample Answer
The response provides two partial explanations. The advantage of monopolies is “that you would get all of the money.” The Progressives’ concern was that “you could raise prices to anything.” The response does not follow through with a complete explanation.
1 Point Sample Answer
The response provides a partial explanation for monopolies by stating only an advantage of monopolies (“It gave the businesses more power”), but provides no explanation for the position of the Progressives.
0 Point Sample Answer
The response does not correctly address the assigned task.
What knowledge do students need to understand this concept?
Students need to know the economic effects of industrialization. Students can define the terms “monopoly” and “laissez-faire economics” to increase their understanding of the economic conditions and effects of industrialization. Also, students can make a list of the positive and negative aspects of monopolies and look at a specific example, Standard Oil, from that time period.