Economic Boom

Question 1

Republican policy

Answer 1

1. Laissez faire - success through their hard work
2. Rugged individualism - weakened anti-trust law, encouraged entrepreneurs to experiment with new production techniques - improve problem solving skill
3. less centralized and fragmented banking system
4. less restriction - control resources effectively reducing the unit cost of its output
5. less taxation - increase disposable income & higher living standard - more profit - investment
6. discourage trade union - disruptive towards business growth

Question 2

WW1

Answer 2

1. Isolationism - focal point shifted to growth of business
2. high profits, increased wages, more employment
3. export vast amount of resources to equip, armies, tools of combat
4. Allied powers scrambled to secure raw and finished goods
5. cemented position as the world leader - cash-rich nation, global creditor
6. caused realm of ideas

Question 3

Tariff

Answer 3

1. Shield local business from foreign competition
2. Demand for local goods spiked
3. control their business free-handily

Question 4

New Industries - Henry Ford

Answer 4

1. 1920 - $940, 1929 - $290
2. successfully achieved aims of producing affordable cars
3. Assembly lines - 1.5 hour instead of 13 hours - without highly skilled workers
4. Benefited roads, glass, rubber
5. large # of complex machines could be used simultaneously - allowed mass consumption
6. created cycle that allowed mass consumption
7. faster pace in industries - become more connected - unlimited mobility
8. government began funding highway design

Question 5

New industries - Electricity

Answer 5

1. innovative idea
2. lighting & heating for homes and businesses - better working environment - living standard spiraled
3. cheap & efficient
4. 1929 - 70% of homes had electricity, consumption of electricity doubled over the decade
5. expanding utility networks - new consumer appliances
6. Growth of one industry has a multiplier effect that stimulates the growth of another

Question 6

Hire Purchase

Answer 6

1. increased buying power
2. No overproduction
3. stimulated more products, contributing to the rapid growth
4. increased likelihood of people trying out new products
5. hype for the new products would arise

Question 7

Marketing Techniques

Answer 7

1. department store - new retail industry
2. chain store
3. Supermarket - spend more
4. Catalogue

Question 8

State of Mind

Answer 8

1. Confidence - economic indicator - measure optimism of producers and consumers
2. more willing to spend & invest
3. broader profit margin for producer - buy bigger bulks & get discounts
4. new ideas & invention