1920 Economy

Question 1

Which factors contributed to the economic boom

Answer 1

Consumerism, technological innovation and business methods, car industry, laissez faire government approach

Question 2

How many homes had electricity by 1927

Answer 2

63% of homes

Question 3

Average rise in wages

Answer 3

1923-1927 average of 8%

Question 4

How many goods were sold through hire purchase throughout the 1920s

Answer 4

1/2 of goods

Question 5

How much were companies spending on advertisements by 1929

Answer 5

3 billion dollars annually

Question 6

What changed about advertisements

Answer 6

Used slogans and brand names rose in popularity such as Star Cigarettes, psychologists were hired to target ads to specific audiences

Question 7

What was introduced to reflect government policy of protectionism and what did it do

Answer 7

Fordney- McCumberb Tariff 1922: introduced highest import duties to protect American industry from foreign competition

Question 8

Positive and negative effect of the Fordney McCumber Tariff 1922

Answer 8

Positive- Us companies secured profit and did not have to fear competition from overseas allowing American industry to dominate the nation. Negative- acted as a barrier to healthy trade relation with Europe

Question 9

What was the common Republican ideology of the time and its meaning

Answer 9

Rugged individualism: the belief in hard work, being self made and success through self determination

Question 10

Impact on agriculture

Answer 10

Demand after war had decreased and trade overseas was limited due to tariffs

Question 11

How did people afford consumerism

Answer 11

Tax reductions on corporations and low income tax with availability of credit/ hire purchase

Question 12

Impact of electrification

Answer 12

Companies save money as it was a cheaper and more reliable source of energy, widened the scope for consumer goods

Question 13

Impact of development of new technologies

Answer 13

Increased productivity and efficiency making more profit. Inventions such as conveyor belt and sewing machines

Question 14

How many companies owned the nations wealth and what scale

Answer 14

By 1929, 200 corporations owned 20% of the nations wealth

Question 15

How did business practices evolve

Answer 15

Cartels were able to fix prices, large corporations able to dictate output and price levels such as US Steel, management science allowed businesses to function smoothly and focus on targets, holding companies allowed companies to dominate industries

Question 16

Increase in car production

Answer 16

1920-1929 1.9 million to 4.5 million

Question 17

How many shares were sold in 1929

Answer 17

1.1 billion

Question 18

What method did people use to buy shares and what did it allow

Answer 18

Buying on the margin allowed those who did not have money to pay full amount for a share to make a purchase and still make profit

Question 19

What did Henry Ford introduce and what did it allow

Answer 19

Assembly line which standardised the car industry and increased productivity marvellously

Question 20

What changed American landscape and lifestyle

Answer 20

Car- growth of interstate highways through the Federal Highway Act 1929, development of motels, restaurants and gas stations, expansions of cities and suburbs,connected markets cross country, independent travel

Question 21

Which industries were stimulated by the car industry

Answer 21

Steel, rubber, glass, oil

Question 22

How many jobs did the car industry provide

Answer 22

5 million

Question 23

How much of petrol was consumed by the car industry

Answer 23

90%

Question 24

By 1920, how many cars were on the road

Answer 24

4.5 million