California Teacher Credentialing Examination (CSET) Practice Test

World War I significantly boosted California's economy, primarily due to the demand for military supplies and goods. As the war escalated, California became a crucial supplier for the U.S. military, leading to increased production in various industries, including agriculture, manufacturing, and shipbuilding. The influx of government contracts and the need for wartime materials resulted in expanded employment opportunities, driving up wages across different sectors.

Additionally, California's agricultural sector thrived during the war, as the demand for food production surged to support both military personnel and the home front. This period saw the state’s agriculture diversify and grow, with an increase in crop production and innovation in farming techniques.

This economic prosperity contrasted with the other choices. There was not a stagnation in agriculture or commerce during this time; instead, there was growth. Real estate values generally increased due to the rapid economic expansion, and the film industry, rather than declining, also prospered as more people moved to California, and the entertainment sector thrived amidst the war. Thus, the assertion that wages and production in the state expanded rapidly accurately reflects the impact of World War I on California's economy.