Advanced Placement US History (AP US History) Practice Exam

What tactic did 'robber barons' commonly use to build their wealth during the late 1800s?

1. Philanthropy

2. Cutthroat competition

3. Cooperative business practices

4. Government regulation compliance

The correct answer is: Cutthroat competition

The tactic of cutthroat competition was commonly employed by 'robber barons' to amass their wealth during the late 1800s. This approach involved aggressive business practices aimed at undermining competitors, which often included lowering prices to drive others out of the market and subsequently establishing monopolies. Notable figures like John D. Rockefeller and Andrew Carnegie implemented such strategies, leveraging their substantial resources to dominate entire industries such as oil and steel. By engaging in cutthroat competition, these industrialists could control pricing, production, and distribution of their goods, thus consolidating their economic power and wealth. The other options do not accurately reflect the methods typically associated with robber barons during this era. Philanthropy, while practiced by some of these individuals later in their careers, was not a primary tactic for wealth accumulation; instead, it often came as a response to criticism of their monopolistic behaviors. Cooperative business practices were usually contrary to the individualistic and competitive nature of the robber barons’ operations. Lastly, government regulation compliance was minimal, as these industrialists often sought to avoid or manipulate regulations to favor their interests, particularly in an era of limited regulatory frameworks.