Which of the following best describes how American consumers in the 1920s were able to afford expensive durab…

Question

Which of the following best describes how American consumers in the 1920s were able to afford expensive durable goods such as cars and refrigerators?
(A) The government subsidised the purchase of consumer goods for all citizens.
(B) Wages rose so sharply that most workers could pay for goods upfront with cash savings.
(C) A system of hire purchase (buying on credit in instalments) allowed consumers to buy now and pay later.
(D) Imported goods from Europe made durable items cheaper and widely available.

Accepted Answer

## Model Answer **Option C** — Consumers purchased goods on credit, repaying in weekly or monthly instalments. In the 1920s, Americans bought durable goods like cars and refrigerators through a "hire purchase" system — buying on credit and repaying in weekly or monthly instalments. Source: Chapter 3, Section 3.3 — Rise of Mass Production and Consumption --- ## Explanation The passage explicitly states: *"there was a spurt in the purchase of refrigerators, washing machines, radios… all through a system of 'hire purchase' (i.e., on credit repaid in weekly or monthly instalments)."* Examiners expect you to identify the hire purchase/instalment credit system as the key mechanism. Options A, B, and D are not supported by the passage.

Social Science (087) — AI-generated practice question