New
New
Year 11
AQA

Causes of the 'boom'

I can explain why there was an economic boom in the 1920s.

New
New
Year 11
AQA

Causes of the 'boom'

I can explain why there was an economic boom in the 1920s.

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Lesson details

Key learning points

  1. The USA experienced an economic boom in the 1920s.
  2. Mass production, government policies and the effects of WWI helped make businesses more profitable.
  3. Demand for consumer goods like cars and radios increased.
  4. Advertising and hire pruchase schemes helped create a consumer society.
  5. The boom was accelerated by a cycle of prosperity which benefitted both businesses and consumers.

Common misconception

Students assume that only businesses benefitted from the boom.

Consumers benefitted from the boom through increased employment, rising wages, and the ease of buying goods which improved standards of life.

Keywords

  • GDP - GDP refers to the total value of goods and services produced by a country in a year

  • Shares - some companies sell shares in order to raise money; people who own shares in a company receive part of the company’s profits

  • Laissez-faire - laissez-faire beliefs suggest that the government should not interfere with the economy

  • Tariff - a tariff is a government tax on imports into a country

  • Consumer goods - goods which people use for their own benefit, such as cars or clothes, are known as consumer goods

Students could be pushed further by asking them what the most important cause of the boom in the US was. Students should be encouraged to refer to links between factors or refer back to the cycle of prosperity as part of their explanations.
Teacher tip

Licence

This content is © Oak National Academy Limited (2024), licensed on Open Government Licence version 3.0 except where otherwise stated. See Oak's terms & conditions (Collection 2).

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6 Questions

Q1.
Which word best describes someone who buys goods?
Correct answer: consumer
manufacturer
producer
retailer
Q2.
What type of economic activity is involved in industry?
farming
Correct answer: manufacturing
financial services
Q3.
Write the missing word. The Industrial began in Britain in the 18th century.
Correct Answer: Revolution, revolution
Q4.
Which of the following countries was not initially involved in WWI?
Britain
France
Germany
Russia
Correct answer: USA
Q5.
Why can Native Americans be described as 'indigenous' to the Americas?
they migrated to the Americas
they are the most powerful group in the Americas
they are the most populous group in the Americas
Correct answer: they were the original inhabitants of the Americas
Q6.
Starting with the earliest, sort the following events into chronological order.
1 - American Revolution
2 - abolition of slavery in the British Empire
3 - abolition of slavery in the USA
4 - beginning of Wolrd War One

6 Questions

Q1.
Match up the keywords with the correct definitions.
Correct Answer:GDP,total value of goods and services produced by a country

total value of goods and services produced by a country

Correct Answer:laissez-faire,where the government avoids interfering with the economy

where the government avoids interfering with the economy

Correct Answer:shares,allow owners to take a portion of a company's profits

allow owners to take a portion of a company's profits

Correct Answer:tariff,a government tax on imports into a country

a government tax on imports into a country

Q2.
Which of the following goods was commonly produced on assembly lines?
books
paintings
Correct answer: radios
Q3.
Write the missing word. politicians in the USA were usually in favour of laissez-faire policies in the 1920s.
Correct Answer: Republican, republican
Q4.
What name was also given to credit schemes?
mass production
tariffs
Correct answer: hire purchase plans
Q5.
Which statement is accurate?
unemployment rose and average wages fell during the 1920s
unemployment and average wages fell during the 1920s
Correct answer: unemployment fell and average wages rose during the 1920s
unemployment and average wages rose during the 1920s
Q6.
What name is given to the process whereby changes in the US economy positively reinforced the effects of other changes?
Correct answer: cycle of prosperity
cycle of purchasing
cycle of positivity
cycle of poverty

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