The Inter-war Economy

1. When did the First World War take place?  

   A) 1910–1914  

   B) 1914–1918  

   C) 1920–1925  

   D) 1930–1935  

   Answer: B) 1914–1918  

2. What was one of the significant economic impacts of the First World War?  

   A) Decrease in military production  

   B) Strengthening of traditional economies  

   C) Widespread economic and political instability  

   D) Growth of small-scale agriculture  

   Answer: C) Widespread economic and political instability  

3. Which two power blocs were involved in the First World War?  

   A) Axis Powers and NATO  

   B) Allies and Central Powers  

   C) United Nations and Axis  

   D) Capitalists and Communists  

   Answer: B) Allies and Central Powers  

4. What was a key feature of the First World War?  

   A) Use of traditional warfare techniques  

   B) Limited participation of industrial nations  

   C) First modern industrial war with extensive use of machinery  

   D) Conflict confined only to European territories  

   Answer: C) First modern industrial war with extensive use of machinery  

5. Which country emerged as a major economic power after the First World War?  

   A) Germany  

   B) Britain  

   C) United States  

   D) Russia  

   Answer: C) United States  

6. What was a major challenge faced by Britain after the First World War?  

   A) Decline in population  

   B) Lack of military power  

   C) Huge external debts and economic crisis  

   D) Complete loss of colonies  

   Answer: C) Huge external debts and economic crisis  

7. What economic event severely affected global economies in the late 1920s?  

   A) The Industrial Revolution  

   B) The Great Depression  

   C) The Renaissance  

   D) The Cold War  

   Answer: B) The Great Depression  

8. Which economist believed that Indian gold exports promoted global economic recovery during the depression years?  

   A) Adam Smith  

   B) Karl Marx  

   C) John Maynard Keynes  

   D) Milton Friedman  

   Answer: C) John Maynard Keynes  

9. What impact did the depression have on rural India?  

   A) Improved agricultural output  

   B) Reduced peasants’ indebtedness  

   C) Increased debt, land mortgage, and export of precious metals  

   D) Growth in industrial employment  

   Answer: C) Increased debt, land mortgage, and export of precious metals  

10. How did urban India fare during the Great Depression compared to rural India?  

    A) Urban India was severely affected with widespread famine  

    B) Urban areas saw improved conditions due to falling prices benefiting fixed income earners  

    C) Both urban and rural areas suffered equally  

    D) Cities experienced complete economic collapse  

    Answer: B) Urban areas saw improved conditions due to falling prices benefiting fixed income earners