Final answer:
Los Angeles in the 1920s is falsely characterized by the statement that it remained a small town; it was actually experiencing significant growth due to factors like the film industry, oil discovery, and advances in transportation.
Step-by-step explanation:
All of the following are true of Los Angeles in the 1920s except that it remained a small town. In fact, by the 1920s, Los Angeles was undergoing rapid growth and transformation. The city benefited from an influx of people attracted by, among other factors, the burgeoning film industry centered in Hollywood. The discovery of oil in the L.A. basin, advancements in the citrus industry thanks to the invention of the refrigerated boxcar, and improvements in port facilities at San Pedro contributed to its development into a major city.
Los Angeles's transportation infrastructure also grew to meet the demands of its expanding population. The Santa Fe/Southern Pacific railroad contributed to L.A.'s early growth by giving the city a break-of-bulk advantage. However, by the mid-20th century, it was the automobile that defined L.A.'s expansion, as residents moved to suburbs linked by an extensive highway system. The city's highly decentralized layout is a product of this automobile-centric growth.
Yet, challenges such as housing shortages and residential segregation persisted. The poor, especially in minority communities, faced overcrowding and displacement. Despite the economic growth and industrial boom that characterized the period, these social issues were significant parts of the city's history in the 1920s and beyond.