World War II Assessment Prep
| # | Answer |
|---|---|
| 1 | Economics is the study of how people, businesses, and governments make choices about resources, money, and goods. |
| 2 | A war economy is an economy organized to support a country’s war effort, often by producing weapons, supplies, and military equipment. |
| 3 | It created many new jobs in factories and other war-related industries. |
| 4 | Governments controlled prices to help stop inflation and keep basic goods affordable. |
| 5 | Rationing is a system that limits how much of a product each person can buy. |
| 6 | Rationing was used because many goods were scarce and needed to be shared fairly. |
| 7 | Many factories changed from making consumer goods to making military supplies and weapons. |
| 8 | The labor force is the group of people who are working or looking for work. |
| 9 | More women entered the labor force to replace men who had gone to fight in the war. |
| 10 | Inflation is a general rise in prices over time. |
| 11 | War can cause inflation because supplies become limited while demand for important goods increases. |
| 12 | Government spending means money the government uses to pay for war production, soldiers, equipment, and other needs. |
| 13 | It increased production in industries that made military goods and supplies. |
| 14 | A shortage happens when there is not enough of a product to meet demand. |
| 15 | Examples include gasoline, rubber, meat, sugar, or metal. |
| 16 | They borrowed money to help pay for the very high costs of fighting the war. |
| 17 | Opportunity cost is the value of the next best choice that must be given up. |
| 18 | When factories make military goods, they give up the chance to make consumer goods instead. |
| 19 | War disrupted trade routes, damaged production, and made countries focus more on wartime needs. |
| 20 | One major economic effect was that the government took a larger role in the economy by controlling prices, directing production, and spending heavily on the war effort. |