Lesson 64 - unit 13

Question 1

Who developed Model T?

Answer 1

Henry Ford.

Question 2

How much of the new car market did General Motors control in the 1950s?

Answer 2

Over half.

Question 3

What reduced popularity of gas-guzzling cars in the 1970s?

Answer 3

An increase in gas prices due to Arab countries refusing to sell gas to the U.S.

Question 4

Cars from what country challenged the predominance of American companies in the 1970s and 1980s?

Answer 4

Japan.

Question 5

What companies are the Big 3 U.S. automakers?

Answer 5

General Motors (GM), Ford, and Chrysler.

Question 6

How many cars and light trucks were sold in the U.S. in 2008?

Answer 6

49.7 million

Question 7

What are 4 economic issues involved in the future of the auto industry?

Answer 7

1. supply and demand
2. Substitute and complementary goods
3. government regulations
4. Foreign trade

Question 8

What 5 factors does Joseph White say contributed to the trouble in the U.S. auto industry.

Answer 8

1. Detroit underestimated the competition
2. GM mismanaged its relationship with the United Auto Workers
3. GM, Ford, and Chrysler handled failure better than success
4. The Big 3 relied too heavily on a few, gas-hungry truck and SUV lines for all their profits
5. GM refused to change from what it was in the 1950s and 1960s

Question 9

What financial obligations do U.S. automakers have for their UAW members?

Answer 9

1. Provide health care
2. Provide pensions for retirees
3. provide Job Banke commitment for people whose work was no longer needed

Question 10

What does White say GM now stands for?

Answer 10

Government Motors.