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

Why did stock prices drop so quickly in 1929?Companies were less valuable in October than they had been in the summer months.People started investing in other things, such as real estate.Investors panicked when prices fell, and they tried to sell their stocks as quickly as possible.

Revolt · Accepted Answer

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

Question 4

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

Revolt · Accepted Answer

began; stopped; slow down

Question 5

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

Revolt · Accepted Answer

more than

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

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 8

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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