In the 1920s manufacturers encouraged consumerism by offering

Question 1

In the 1920s, manufacturers encouraged consumerism by offering:

A. fewer goods at low prices.

B. fewer goods at high prices.

C. a greater variety of goods for high prices.

D. a greater variety of goods for fair prices.

Question 2

In explaining the Great Depression of the 1930s, historians have pointed to all of the following problematic factors during the 1920s EXCEPT:

A.a dramatic increase in taxes, government spending, and government regulation of business during the 1920s
B.stock market speculation, which was encouraged by allowing investors to buy stocks on credit (“buying on the margin”)
C.overproduction in agriculture and other industries
D.increasing consumer debt and income inequality

Question 3

Which of the following encourages consumers to choose a specific brand by offering a​ short-term price​ break?




Trade shows


Product sampling




Merchandising allowance

Answer to question 1

The correct answer is D. a greater variety of goods for fair prices

In 1920, the US manufacturers intended to raise the market by encouraging consumerism in the economy. Following consumerism, the manufacturers sold a lot of products that belonged to different varieties. These products were traded at fair prices respectively. This made the manufacturers generating good profits.

Answer to question 2

Answer : A

Cause: New York stock exchange was a place of reckless speculation in 1920s. Everyone from business tycoons to family help invested their savings in stocks.

Effect: Slowly, the prices of stock became much higher that their actual value. By the end of October 29, stock prices were do high, that they could not be justified by future profits. Nervous investors began selling their stocks in high quantity. Investors who’ve bought stocks on borrowed money were wiped out of the charts. Spending declined. As a result industrial good piled up. Workers were fired. Economy failed to find the boost to revert back.

Other  causes: 

Agricultural overproduction.

Widening economic gap between rich and poor.

President Herbert Hoover followed a hands off policy. They assured public that the recession would run its course. They did not intervene the market. In fact, there were no or very few regulation on companies in 1920s which was again a major cuase of Great Depression. (Stock prices went unchecked)

So the answer is A. A dramatic increase in tax, government spending and government regulation of businesses during 1920s were NOT a cause of Great Depression.

Hope this helps 🙂

Answer to question 3

The correct answer is option a. 

Rebates encourage the customers to choose a specific brand by offering a short term price break. A price break refers to the reduction of the prices of goods or services to encourage customers to make more purchases. 

Merchandising allowance encourages retailers to provide in-store support of a product to display particular brands. 

While trade shows refer to an event where the companies demonstrate or display the new latest products or services offered by the company. Trade show is limited to certain geographic location and does not not large geographic areas for offering short term price.

Premiums do not encourage the customers for choosing a particular brand for a short-term price break as these refer to additional costs included in the original cost, which increases the overall price of the brands. So, it does not encourages the customers for a short-term price.

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