Quiz: The Economy of the Twenties

All of the following were signs that the prosperity of the 1920s was superficial (appears to be true, but is not) EXCEPT

• The economic struggles of American farmers
• The success of the advertising industry
• The number of products purchased on credit
• The difference in income levels between workers and managers

The demand for automobiles in the 1920s

• Stimulated growth in many other industries
• Led to a nationwide recession
• Closed down the steel industry
• Brought about the collapse of the suburbs

Which economic practice became significantly more widespread during the 1920s?

• Governmental regulation of business
• Buying goods on Credit
• A dependence on government welfare programs
• Reductions in tariff rates

The economic boom and the financial speculation of the 1920’s were caused in part by

• Installment buying and an unregulated stock market
• The expansion of civil rights to women and minorities
• The mobilization of the economy for war
• Increased government restrictions on big business

What was the major result of Henry Ford’s innovative manufacturing techniques?

• Automobiles became more affordable
• The average price of the automobile increased
• More Americans bought cars from overseas
• Many Americans who worked in the auto industry lost their jobs