Boom and Bust — Quiz

Question 1

During which decade did an economic boom and bust occur in the United States?

Revolt · Accepted Answer

1920s

Question 2

In the 1920s, what did businesses and industries do that caused the economy to slow down?

Revolt · Accepted Answer

They overproduced goods.

Question 3

Which is an example of using credit?

Revolt · Accepted Answer

A consumer buys an item and promises to pay later.

Question 4

Which best explains how the overproduction of goods in the 1920s affected consumer prices and the economy?

Revolt · Accepted Answer

Prices fell as consumer demand decreased, and the economy slowed down.

Question 5

Which best explains why people failed to make their promised payments on items during the 1920s?

Revolt · Accepted Answer

They bought too much.

Question 6

To meet demand in the early 1920s, businesses and industries produced

Revolt · Accepted Answer

more goods that were less expensive.

Question 7

During the 1920s, buying stock on credit was called

Revolt · Accepted Answer

buying on margin.

Question 8

Businesses and industries in the 1920s most closely followed the buying demands of

Revolt · Accepted Answer

consumers.

Question 9

What effect did the use of credit have on the economy in the 1920s?

Revolt · Accepted Answer

It made parts of the economy stronger.

Question 10

What role did consumers play in slowing the economy down in the 1920s?

Revolt · Accepted Answer

Consumers demanded fewer goods.

Boom and Bust — Quiz Answers