Post-war Recovery – MCQs
1. Which country emerged as the dominant economic, political, and military power in the Western world after the Second World War?
A) Britain
B) France
C) The United States
D) Germany
Answer: C) The United States
2. What was one of the significant economic challenges Britain faced after the First World War?
A) Lack of technological advancements
B) Huge external debts due to war expenditures
C) Overproduction in industries
D) Surplus of agricultural products
Answer: B) Huge external debts due to war expenditures
3. Which of the following statements about post-war Britain is true?
A) Britain easily regained its pre-war dominance in the global economy
B) Britain faced difficulties competing with Japan in international markets
C) Britain experienced an economic boom that continued for decades
D) Britain had no external debts after the war
Answer: B) Britain faced difficulties competing with Japan in international markets
4. In 1921, what percentage of British workers were unemployed due to post-war economic issues?
A) 5%
B) 10%
C) 15%
D) 20%
Answer: D) 20% (One in every five British workers was out of work)
5. Which sector experienced a significant crisis after the war due to falling prices and debts?
A) Mining
B) Textile
C) Agriculture
D) Shipping
Answer: C) Agriculture
6. What economic event followed the war boom after the First World War?
A) Increase in industrial production
B) High employment rates
C) Economic depression with reduced production and high unemployment
D) Growth of colonial markets
Answer: C) Economic depression with reduced production and high unemployment
7. Which international economic institutions were established to support post-war recovery?
A) United Nations and NATO
B) World Trade Organization and IMF
C) International Monetary Fund (IMF) and the World Bank
D) G7 and BRICS
Answer: C) International Monetary Fund (IMF) and the World Bank
8. What was the primary aim of the Bretton Woods system established after the Second World War?
A) To regulate military alliances
B) To promote colonial expansion
C) To maintain economic stability and full employment
D) To support socialist economies
Answer: C) To maintain economic stability and full employment
9. The economic boom during the war was primarily due to:
A) Technological stagnation
B) Decrease in global demand
C) Increased demand for war-related goods
D) Reduction in industrial production
Answer: C) Increased demand for war-related goods
10. Which region saw a dramatic expansion in wheat production during the war, leading to a post-war agricultural crisis?
A) Eastern Europe
B) South America
C) North America (Canada and the USA)
D) Middle East
Answer: C) North America (Canada and the USA)
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Explanations
1. The United States emerged as the dominant power due to its economic growth and military influence post-World War II.
2. Britain faced massive external debts as it borrowed heavily from the US during the war.
3. Japan’s industrial growth during the war years made it difficult for Britain to regain its global trade dominance.
4. 20% unemployment highlights the economic instability faced by Britain after the war boom ended.
5. The agriculture sector suffered due to overproduction, falling prices, and farmer debts.
6. After the initial war boom, economies faced contraction leading to widespread unemployment.
7. The IMF and World Bank were created to stabilize economies and support reconstruction globally.
8. The Bretton Woods system was designed to ensure economic stability, full employment, and control over global financial markets.
9. The war economy boosted production due to high demands for military supplies and war-related goods.
10. Canada and the USA expanded wheat production during the war, which led to surplus and falling prices post-war.
