Chapter 2

Question 1

What was the population of the United Kingdom in 1906?

Answer 1

43 million people

Question 2

Where was coal mining was prevalent in the UK?

Answer 2

Yorkshire, South Wales, and the north-east

Question 3

What was the biggest single category of occupation in 1906?

Answer 3

Domestic services

Question 4

Which new industries were being established by 1906?

Answer 4

Electricity, chemicals and motorcars

Question 5

What were the main staple industries?

Answer 5

The textile industry, steel industry, coal and shipbuilding

Question 6

What was one of the major issues in determining Britain’s economy?

Answer 6

Reliable statistical information did not exist

Question 7

Why was it possible to optimistic about Britain’s economy?

Answer 7

Britain was the key shipbuilding nation, output of iron and steel was still increasing, coal continued to be profitable

Question 8

What was the growth rate of these new industries?

Answer 8

3.8%

Question 9

How many people were working in agriculture by 1901 and why?

Answer 9

1,400,000 because of mechanisation and exports were more common

Question 10

Why did farmers have to change their production by 1914?

Answer 10

Agricultural depression in the late 19th century and competition abroad for cheap grain

Question 11

What were invisible exports?

Answer 11

Exports of services such as banking, insurance shipping goods and lending or investing money

Question 12

What percentage of goods and services in Britain were sold abroad?

Answer 12

30%

Question 13

How much of Britain’s overall wealth was in investments overseas?

Answer 13

32%

Question 14

What is a trade gap?

Answer 14

When the value of a country’s visible imports exceeds that of visible exports

Question 15

Why was a lack of research and investment in new technologies a problem?

Answer 15

America and Germany pioneered more effective ways of producing goods such as iron (they were Britain’s largest economic rivals)

Question 16

Why was there a lack of innovation in Britain?

Answer 16

Factory and plant equipment was in general less modern and British mines were labour intensive (over one million were employed from 1913-27)

Question 17

In what ways was Britain weaker in ‘new industries’?

Answer 17

The German chemical industry was twice the size of the British one - 90% of artificial dyes were imported

Question 18

How did a ‘low-wage’ economy affect the British economy?

Answer 18

A ‘low-wage’ economy meant that only rich and middle class people could afford to buy the new manufactured goods

Question 19

How did Britain differ to the USA and Germany in handling free trade?

Answer 19

Germany and the USA both used tariffs to keep their domestic markets free from competition whilst Britain used free exchange of goods between countries

Question 20

What is some evidence to suggest that Britain was weaker than its rivals in education?

Answer 20

Both the USA and Prussia had introduced primary education from the early nineteenth century. Fewer than 300 students were taking applied sciences by 1908

Question 21

How did foreign competition affect problems in agriculture?

Answer 21

Steamships and railways meant that grain from the USA was sold much more cheaply - only a quarter of wheat sold in Britain was made in Britain

Question 22

What was a positive aspect of British industry 1906-14?

Answer 22

The staple industries were still profitable and often increasing

Question 23

What were positive aspects of British trade 1906-14?

Answer 23

World trade was expanding rapidly, London was commercial centre of the world, world’s largest foreign investor

Question 24

What were positive aspects of British agriculture 1906-14?

Answer 24

Cheaper imports of cereals and foodstuffs, home demand remained strong, value of wages in agriculture rose