A Level History - America - Practice Exam

What industry became the fourth largest in terms of capital investment by the 1920s?

1. Automobile industry

2. Cinema industry

3. Textile industry

4. Steel industry

The correct answer is: Cinema industry

The correct choice is the automobile industry, which became a pivotal force in the American economy by the 1920s, emerging as a major player in terms of capital investment. This growth was fueled by advancements in manufacturing techniques, notably the assembly line introduced by Henry Ford, which drastically lowered production costs and increased output. The automobile not only transformed transportation in the United States but also stimulated related industries, such as steel and rubber, leading to a significant economic impact. The cinema industry, while it's true that it experienced considerable growth during this time, did not surpass the automobile industry in terms of capital investment. The film sector became an important cultural and entertainment business, but its capital investments were not on par with those in the automobile sector, which dominated the market and employed millions, reshaping urban landscapes and lifestyles across the nation.