A Level History - America - Practice Exam

Which of the following contributed to the consumer boom in the 1920s?

1. Decline in wages

2. Innovations in production methods

3. Decrease in car ownership

4. Reduction in electrical goods

The correct answer is: Innovations in production methods

The consumer boom in the 1920s was significantly driven by innovations in production methods. During this period, advancements such as assembly line production, pioneered by Henry Ford in the manufacturing of automobiles, allowed for mass production and, consequently, lowered the costs of consumer goods. These efficient production techniques made products more accessible to a larger segment of the population. As a result, the affordability of items like cars, radios, and household appliances surged, stimulating consumer spending and leading to a culture of consumption. This environment was characterized by increased advertising and marketing strategies that promoted a lifestyle tied to ownership of these goods, further incentivizing consumerism. The expansion of credit options also supported this trend, allowing individuals to purchase products without immediate payment. In contrast, options that mention a decline in wages, a decrease in car ownership, or a reduction in electrical goods suggest conditions that would likely not foster a consumer boom, as these factors would typically limit economic growth and the consumer purchasing power.