USA Boom & Bust

Question 1

Post war boom

Answer 1

The phrase given to a positive change in part of the USA’s economy after WW1.

Question 2

Mass production

Answer 2

Consumer goods are produced in larger quantities, quicker and more efficiently which leads to reduction in prices. The assembly line method, in which each factory worker is responsible for a small and specific role in the production process, helped streamline mass production.

Question 3

Technological Advances

Answer 3

Factories became automated. Machines and other improved manufacturing techniques meant that huge amounts of goods could be made at a fraction of the cost. In the decade of the 1920s economic output increased by a staggering 50%. Technological advances also impacted the consumer goods that were produced, such as cars and refrigerators.

Question 4

The Automobile

Answer 4

The automobile was seen to be central to the economic boom of the 1920s. By using the assembly line method to streamline and support mass production. Ford’s Model T helped transform mass production and working conditions. By 1926, Ford was producing a car every 10 seconds.

Question 5

Hire Purchase

Answer 5

Consumers could buy goods by paying a percentage of the items cost upfront, and then paying the balance plus a small interest charge in either weekly or monthly instalments.

Question 6

Consumer boom

Answer 6

The amount of buying of consumer goods by the ordinary population hugely increased. Consumer goods include material possessions such as home appliances, cars and clothes.

Question 7

Tariffs

Answer 7

taxes placed on imported goods from other countries, and goods that are exported. The USA increased tariffs on imports so that goods from other countries would be more expensive for Americans to buy.

Question 8

Laissez-Faire

Answer 8

An approach where the government deliberately avoids getting involved in economic planning, thus allowing free trade to operate. Taxes are kept low, allowing businesses to invest more money and giving consumers more money to keep spending.

Question 9

Gross Domestic Product (GDP)

Answer 9

The total value of goods produced and services provided in a country annually.

Gross National Product is the total value of goods and services produced in a country.

Question 10

Management science

Answer 10

Applying technological and scientific ideas to running a business successfully - monitoring time and energy efficiency.