Pretest

Question 1

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

Revolt · Accepted Answer

consumers.

Question 2

Which industry boosted consumerism in the 1920s, feeding economic growth?

Revolt · Accepted Answer

advertising

Question 3

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

Revolt · Accepted Answer

It made the economy weaker.

Question 4

In the 1920s, many rural banks failed because

Revolt · Accepted Answer

farmers could not repay their loans.

Question 5

What is consumerism?

Revolt · Accepted Answer

a pattern of wanting and buying new products

Question 6

A part of the consumerism cycle is that manufacturers

Revolt · Accepted Answer

advertise goods.

Question 7

How did consumers weaken the economy in the late 1920s?

Revolt · Accepted Answer

Consumers bought too many goods they could not afford.

Question 8

In the 1920s, the danger of buying stock on margin was that if the value of the stock dropped, borrowers

Revolt · Accepted Answer

had to make up the difference.

Question 9

How did the overproduction of goods in the 1920s affect consumer prices, and in turn, the economy?

Revolt · Accepted Answer

Consumer demand decreased, prices decreased, and the economy slowed.

Question 10

During the 1920s, people would buy stock on margin, which meant that they

Revolt · Accepted Answer

bought it on credit.

Pretest Answers