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For the exam 3, based on class sessions
and readings, make sure you can elaborate
on the topics listed on the outline below.

- KEY IDEAS BEHIND THE GREAT WEALTH
    OF THE MODERN WORLD -
 

1. ADAM SMITH

     þ DIVISION OF LABOR --> PINMAKER

     þ JUNK MERCANTILISM --> LAISSEZ-FAIRE
          þ FREE MARKETS
 

2. ELI WHITNEY --> LAID FOUNDATION FOR MASS-
   PRODUCTION MANUFACTURING.

     þ STANDARDIZATION
     þ INTERCHANGEABILITY
     þ EXTENSIVE USE OF MACHINERY
 

3. THOMAS EDISON

     þ INVENTION OF INVENTION --> MENLO PARK, NJ
     þ CREATION OF ELECTRIC-POWER INDUSTRY
 

4. J.PIERPONT MORGAN & JOHN D. ROCKEFELLER

     þ ELIMINATION OF DESTRUCTIVE COMPETITION
     þ RATIONALIZING OF INDUSTRY
     þ ACQUISITIONS, MERGERS, HOLDING COMPANIES
 

5. HENRY FORD --> MASTER OF MASS PRODUCTION

     þ MOVING ASSEMBLY LINE
 

6. JOSEPH SCHUMPETER --> CRUCIAL IMPORTANCE OF:

     þ ENTREPRENEURSHIP
     þ INVENTION
     þ INNOVATION

*******************************************************

MAIN REASONS FOR THE GREAT TRANSFORMATION IN
AMERICA BETWEEN 1800 AND 1900
 
 

1. THE TRANSPORTATION REVOLUTION

     þ INVENTION OF STEAM ENGINE
     þ STEAMBOAT ERA [1790 - 1860]
     þ CANAL ERA [1817 - 1860]
     þ RAILROAD AGE [1830 - 1920]
 
 

2. THE MARKET REVOLUTION

     þ LIFE OF TYPICAL FARMER
     þ LIFE OF TYPICAL URBAN MASTER CRAFTSMAN
 
 

3. THE FACTORY REVOLUTION
 
     þ GEOGRAPHICALLY EXPANDING MARKETS
     þ WATER POWER
     þ STEAM POWER
 
 

4. THE BANKING REVOLUTION

     þ CENTRAL BANK
     þ STATE-CHARTERED BANKS
     þ INVESTMENT BANKING
 
 

5. THE AGRICULTURAL REVOLUTION

     þ CYRUS MCCORMICK --> REAPER
     þ LAND-GRANT COLLEGES
     þ AGRICULTURAL EXTENSION STATIONS
     þ WESTERN WATER PROJECTS
 
 

6. THE REVOLUTION IN IRON & STEEL

     þ BESSEMER CONVERTER

     þ CARNEGIE STEEL

     þ MARKETS FOR STEEL

          þ RAILROADS
          þ BRIDGES
          þ SKYSCRAPERS
 
 

7. THE ELECTRIC REVOLUTION

     þ EDISON, TESLA, & ELECTRIC-POWER INDUSTRY
     þ DC VS. AC
 
 

8. THE CORPORATE REVOLUTION --> GROWTH OF
   GIGANTIC CORPORATIONS