1920's economics

Federal economic policies during the 1920s focused on

• lowering protective tariffs

• increasing income taxes

• supporting big business

• regulating key industries

“A government’s primary role is to provide a favorable atmosphere for business, including a stable currency, hands-off regulation, and domestic order.”

A supporter of this idea would most likely favor:

• establishing consumer protection laws

• securing collective-bargaining rights

• levying high taxes on business

• following laissez-faire economics

I. _________________________________

A. new technologies

B. increased productivity

c. decreased government regulations

• industrial revolution

• increased consumer spending

• rise of wages

• rise of labor unions

Which factor best accounts for the economic growth of the 1920s?

• federal support from labor unions

• low taxes and government subsidies

• the efficiencies created by the assembly line

• increased trade

Which economic condition of the 1920s was a major cause of increased consumer spending?

• decrease in prices

• advertising

• increased income taxes

• increased wages

Presidents Coolidge and Hoover's actions reflected the belief that the federal government should

• help farmers instead of industrial workers

• take a leadership role in economic recovery

• support capitalistic principles

• assume ownership of failed corporations

rising incomes, tax cuts and new consumer goods all resulted in...

• a rising standard of living

• smaller gaps between the rich and the poor

• increased government regulation of industries

• wealth equality

Which statement about the United States economy during the 1920s is true?

• Federal regulation of business was strengthened

• The purchase of stocks steadily declined.

• Mass production decreased the supply of consumer goods

• Republican Party presidents supported business growth.

Higher wages and which other factor lead to increased spending by Americans?

• access to easy credit

• growth of monopolies

• reduced government regulations

• desire for luxury goods

Which of the following benefitted most from the protective tariffs enacted in the 1920's?

• the American consumer

• foreign industries

• American businesses and industries

• the top 1% of the population