Boom and Bust Answers

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1
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To buy goods on credit means to

A
pay cash for goods.
B
promise to pay for goods later.
C
promise to pay only a sale price.
D
pay only a discount price.
4

How did mass production affect consumers?

A
As factories became more efficient, they hired fewer workers, making jobs scarce.
B
The prices of mass-produced goods decreased, making many items more affordable.
C
Assembly lines reduced the variety of goods produced, so consumers had fewer choices.
D
Mass-produced goods tended to have more defects, leaving consumers with worthless products.
5

The land called Teapot Dome in Wyoming was valuable because

A
it was fertile.
B
it produced oil.
C
it was a vast grassland.
D
it had a copper mine.
6

In the consumer culture of the 1920s,

A
people purchased nonessential goods on a regular basis.
B
people purchased only essential goods on a regular basis.
C
people reduced their purchasing of essential goods.
D
people reduced their purchasing of nonessential goods.
7

For most of the 1920s, how did the growth of credit affect the stock market?

A
Investors bought more stocks on margin, and the stock market rose.
B
Investors bought more stocks with cash, and the stock market rose.
C
Investors took fewer risks on stocks, and the stock market declined.
D
Investors took more risks on stocks, and the stock market declined.
8

Calvin Coolidge’s economic policies during the early 1920s helped people forget about the

A
Teapot Dome Scandal.
B
Wall Street Scandal.
C
Stock Investors Scandal.
D
Consumer Credit Scandal.
9

The US president whose economic policies were connected to the Teapot Dome Scandal was

A
Theodore Roosevelt.
B
Warren G. Harding.
C
Calvin Coolidge.
D
Franklin Roosevelt.
10

In the 1920s, the continued rise in the stock market and economic growth depended most on

A
bankers buying stocks with cash.
B
investors buying stocks with cash.
C
consumers buying goods on credit.
D
consumers growing their own food.
11

Study the graph, and then answer the question.Marginal Tax Rate, Tax Paid, and Tax Share for Those with Incomes over $100,000 from 1920 to 1929Which statement best describes the trends shown in the graph?

Question illustration
A
As the highest tax rate was reduced in the 1920s, the economy grew.
B
As the highest tax rate was reduced in the 1920s, the economy struggled.
C
As the highest tax rate was increased in the 1920s, the economy grew.
D
As the highest tax rate was increased in the 1920s, the economy struggled.
12

A reason consumerism increased in the 1920s was because many working people

A
earned less money.
B
earned more money.
C
bought only essential goods.
D
bought only nonessential goods.
13

An important feature of consumerism in the 1920s was that manufacturers

A
avoided advertising goods.
B
sold goods only for cash.
C
advertised goods.
D
made fewer goods.
14

In the 1920s, a reflection of the weakening economy was the growing gap between

A
farmers and laborers.
B
the rich and the poor.
C
stockbrokers and bankers.
D
consumers and sellers.

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