On what was it based?

Question 1

What is gross national product?

Answer 1

Financial turnover of the country

Question 2

What percentage did gross national product rise by?

Answer 2

40%

Question 3

What percentage did income rise by and what did it lead to?

Answer 3

27% and mass production increased e.g Ford Motors

Question 4

Explain how the first word war contributed to the boom

Answer 4

USA joined the war late so lost fewer resources
Took over trade whilst other countries were fighting
Lent money to allies and sold them goods - one way trade

Question 5

What was the Consumer Boom?

Answer 5

Increase of item bought with hire purchase

Question 6

Who were the main the leaders of the republic party during the boom years?

Answer 6

Harding
Coolidge
Hoover

Question 7

What did the laissez-faire policy mean in the USA?

Answer 7

The government kept out of business affairs

Question 8

What was the state of mind of people during the boom?

Answer 8

They thought it was bad to save and good to spend

Question 9

What is the famous quote from H.Hoover about the boom?

Answer 9

‘A chicken in every pot, a car in every garage’

Question 10

What was set up by Henry Ford and how did it contribute to the boom?

Answer 10

The first moving production line (assembly line)

It made other consumer goods cheaper because they could be produced quicker

Question 11

How many cars were around in 1900 compared to in 1929?

Answer 11

1900 : 4,000

1929 : 4.8 million

Question 12

What year was the Assembly line introduced?

Answer 12

1913 by Henry Ford

Question 13

What was the first mass produced car?

Answer 13

Model. T. Ford

Question 14

What percentage of glass was used in cars?

Answer 14

75%

Question 15

What other materials were in higher demand due to the increase in cars?

Answer 15

Oil, rubber, glass, steel and roads

Question 16

What fraction of cars were bought on credit?

Answer 16

6/10

Question 17

What fraction of radios were bought on credit?

Answer 17

8/10

Question 18

What were the 5 main reasons for the economic boom?

Use the acronym ‘FIRST’

Answer 18

F:irst world war
I:ndustries and methods 
R:epublican policies 
S:tate of mind 
T:hree raw materials

Question 19

How did the abundance of raw materials contribute to the boom?

Answer 19

USA could make money selling it abroad and save money by not importing them. They could also use the materials to make consumer goods