Monopolies in a
Capitalistic America
A WebQuest
Introduction
This lesson was developed as a way to emphasize the nature of business in America during the
late 1800s and early 20th century.
In this WebQuest, you will learn about a variety of different aspects relating to business
including: capitalism, monopolies, and economic competition. You will also read how Americans
fear a monopolistic society in business, and how monopolies were stopped.
Capitalism, Free Markets, and Monopolies (3
points each)
Go to http://simple.wikipedia.org/wiki/Capitalism. Read the initial paragraph and answer the
following question.
•
In your own words, describe the concept of capitalism.
Go to http://www.investopedia.com/terms/f/freemarket.asp. Read the definitions at the top of
the page and answer the following question.
•
Define “free market”.
Go to http://useconomy.about.com/od/glossary/g/monopoly.htm. Read the source provided, and
answer the following questions.
•
Explain the concept of a monopoly in your own words.
The 1st U.S. Monopoly (1 point each)
Watch the following clip about John D. Rockefeller who was the catalyst behind the first
American monopoly: Standard Oil. Then answer the questions that follow.http://
www.history.com/topics/john-d-rockefeller/videos/john-d-rockefeller-oil-money-and-power
•
What invention triggered Rockefeller’s interest in the oil industry?
•
In what city did Rockefeller begin his oil business?
•
What product were Americans demanding as industrialization and urbanization expanded
after the Civil War?
•
How did Rockefeller gain control over the oil industry?
•
At its high point, how much of the oil industry did Rockefeller control in the U.S.A.?
•
What new invention in the early 20th century created a new demand for oil that we hadn’t
seen before?
•
What state in the South saw its first “gush” of oil in January 1901?
•
How did Standard Oil collapse (or fall apart)?
Fear Over Monopolies (3 points)
Read the following text from: http://www-cs-faculty.stanford.edu/~eroberts/cs181/projects/
corporate-monopolies/dangers.html. Then, answer the questions that follow.
•
Why do people fear monopolies?
A Problem Now?
Read this recent article about a potential issue in an internet search engine monopoly. Then,
answer the following questions. http://www.theverge.com/2013/9/20/4751516/ballmer-callsgoogle-a-monopoly
•
Steve Ballmer is upset that
search engine business. (1 point)
•
Ballmer works for
has a monopoly in the
, and their search engine giant is Bing. (1
point)
•
Do you think it is possible that Ballmer’s claim is true? Does Google have a monopoly in the
search engine business? Or is he just simply frustrated that Bing isn’t more successful?
Explain in at least a paragraph. (3 points)
Intervention: Fair or Foul? (5 points)
And now, for the concluding question: In your mind, should monopolies be legal or illegal?
Should a business be allowed to conduct itself the way it wants in our capitalistic society? Or
should they be stopped if they become too powerful? Explain your answer in at least one
paragraph using the information that you’ve learned in this WebQuest.