NOTE:  It is highly recommended that you read over this entire lesson before you begin.

Preliminary Discussion:  Horse drawn carriages ushered in the 20th century, but automobiles (called horseless carriages) soon became increasingly popular and affordable.  Coal and steam power began to be replaced by oil and electrical power.  The Wright brothers flew the first heavier than air machine in 1903, and Albert Einstein developed the theory of relativity in 1905.  Silent movies became increasingly popular, creating celebrity movie stars like Charlie Chaplin.  Most of the world’s economies operated on the gold standard.  The first global recession occurred in 1907-08.  Peace and prosperity were interrupted by World War I from 1914 to 1918.

In The 20th Century Global Economics Game you are the chief economic adviser to the leaders of the country of your choice (except the USA).  You are in charge of economic policy as the game tends to follow the historical economic path of the United States.  The objective is to implement timely and appropriate economic polices to outperform the USA and the other countries.  Good luck and have fun!

Play The 20th Century Global Economics Game for the two consecutive decades 1900 to 1919 against up to six other countries (including the USA) that are computer-managed (i.e., advised by Professor N. D. Cator).  Note:  If you do not know how to play the game, then select "Tutorial" from the main menu first.  If you already know how to play, then select "20th  Century" to begin play.

COMPLETE THE GAME.  Print the final score and attach it to this lesson.

ANSWER QUESTIONS 1 – 10.  Note: The answers can be found by studying the Decade Charts and Decade Events.  (Circle the letter before the best single answer).

1. At the beginning of the 20th  century, most countries operated on the gold standard.  Under this system:
(a) Only gold coins and bullion were used as mediums of exchange and accepted as legal tender.
(b) A US $20 gold coin weighed 1 ounce and could be exchanged for 4 British pound currency notes.
(c) All  newly discovered gold automatically became the property of the government.
(d) The fixed exchange rate between the U.S. dollar and the British pound was 20 to 1.
(e) One ounce of gold was worth one U.S. dollar.

2. In 1901 French chauffeurs went on strike to protest a law that:
(a) prohibited them from driving without passing a rigorous safe driving test.
(b) required all limousine's to be black.
(c) put a price ceiling on their hourly wage at 1 franc per hour.
(d) prohibited them from wearing moustaches.
(e) set the maximum speed limit in Paris at 10 km/hr.

3. The world's largest silver mine to date was discovered in 1902 in what country?
(a) Canada.
(b) Bolivia.
(c) United States.
(d) India.
(e) Australia.

4. Which of the following countries was blockaded by  English, German and Italian warships in an attempt to collect on international debts in 1902?
(a) Nigeria.
(b) Mexico.
(c) Venezuela.
(d) Indonesia.
(e) Ethiopia.

5. Upton Sinclair’s book, The Jungle, published in 1906:
(a) began a series of popular novels about the British aristocrat, Tarzan, who was raised by apes after a plane crash in Africa.
(b) referred to the “jungle’ as a metaphor for the fears and insecurities of inner city life in the early 20th century.
(c) was an historical account of how the De Beers diamond monopoly was forged in South Africa in the late 19th century.
(d) described capitalism as a Darwinian “survival of the fittest” economic system and called for a massive redistribution of income and wealth from the rich to the poor.
(e) exposed the dirty conditions of the meat packing industry and resulted in a spate of industry regulations pertaining to health and safety in the food industry.

6. The primary source of revenue for the U.S. federal government in the early 20th century was:
(a) income taxes.
(b) retail sales taxes.
(c) tariffs and excise taxes on alcohol and tobacco.
(d) corporate profits taxes.
(e) property taxes.

7. The quantity theory of money, analytically expressed in the equation of exchange MV=PQ, was developed in 1911 by:
(a) Irving Fisher.
(b) Henry Ford.
(c) Frederick Taylor.
(d) Albert Einstein.
(e) Charlie Chaplin.

8. The 16th Amendment of the United States Constitution was passed in 1913 and:
(a) gave women the right to vote.
(b) prohibited the sale and distribution of alcoholic beverages.
(c) prohibited child labor.
(d) gave the U.S. Treasury the authority to issue silver certificates.
(e) established the income tax.

9. Which of the  following statements is true?
(a) Movie celebrity Charlie Chaplin earned about US $52,000 in 1916.
(b) The Federal Reserve System was established near the end of World War I to demonetize gold.
(c) Dollar diplomacy initiated by President Taft provided loans to help rebuild Europe after World War I.
(d) At the beginning of World War I, the United States industrial capacity was larger than England and Germany combined.
(e) The Underwood Tariff Act of 1913 raised U.S. tariff rates to their highest level to date.

10. The two most significant events of the year 1918 were the Treaty of Versailles marking the end of World War I and:
(a) the completion of the Trans-Siberian Railway in Russia.
(b) the worldwide influenza epidemic that killed approximately 20 million people.
(c) the sinking of the cruise ship Titanic.
(d) the creation of the Federal Reserve System in the United States.
(e) a global recession and financial panic.

End of Lesson

Note:  You will receive _____   possible points for this exercise.

Instructor's Option:  You will receive additional points according to the schedule below:

                                  Number of Other Countries
Your Place       1          2          3        4          5         6
           1st        5          6          7          8          9         10
           2nd       4          5          6          7          8          9
           3rd                    4          5          6         7           8
            4th                                4          5          6          7
            5th                                            4          5          6
            6th                                                        4          5
            7th                                                                    4

Examples:  If you play against 6 other countries and you place 1st, then you get 10 extra points!  If you play against 4 other countries and you place 3rd, then you get 6 extra points.  If you play against two other countries and you place 2nd, then you get 5 extra points.

Winning Strategy Hint:  Study the Decade Chart to anticipate the direction of the Economic Indicator next year before setting your monetary policy.