Boom and Bust

Question 1

What was the most likely reason why consumers stopped buying things in the 1920s?

Revolt · Accepted Answer

Consumers could not longer afford to buy everything they wanted.

Question 2

What happened when businesses cut production?

Revolt · Accepted Answer

Some workers lost their jobs.

Question 3

In the end, consumers buying products and the economy began to .

Revolt · Accepted Answer

began; stopped; slow down

Question 4

"Overproduction” means that the amount of goods being made is the amount of goods being sold.

Revolt · Accepted Answer

more than

Question 5

Why was this a weakness? Check all of the boxes that apply.

Revolt · Accepted Answer

If lenders try to collect the money they are owed and can’t collect, lenders may go out of business.; If debts cannot be collected on a wide scale, many workers will lose their jobs.

Question 6

How does a person use credit to make a purchase?

Revolt · Accepted Answer

by making a promise to pay at some point in the future

Question 7

In order for "buying on the margin" to work, stock values have to .Due to speculation, stock prices .

Revolt · Accepted Answer

rise; rose

Question 8

Why did stock prices drop so quickly in 1929?

Revolt · Accepted Answer

Investors panicked when prices fell, and they tried to sell their stocks as quickly as possible.

Question 9

Which factor(s) did you identify? Check all of the boxes that apply.

Revolt · Accepted Answer

stock market speculation; too much buying of stocks on margin; low farm prices; bank failures; too much reliance on consumer credit; a drop in consumer spending; industrial overproduction; failing consumer confidence

Boom and Bust Answers

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