AnswersUS HistoryRoaring Economy to Great Depression

Roaring Economy to Great Depression — Quiz Answers

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1
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How did consumers weaken the economy in the late 1920s?

A
Consumers bought too many goods they could not afford.
B
Consumers only bought a limited number of products.
C
Consumers increased their spending and used only cash.
D
Consumers refused to pay high prices for goods.
2
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A part of the consumerism cycle is that manufacturers

A
make fewer goods.
B
sell goods only for cash.
C
advertise goods.
D
do not advertise goods.
3

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

A
paid in installments.
B
bought it on credit.
C
paid cash for it.
D
bought it on speculation.
4

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

A
It made parts of the economy stronger.
B
It made the economy stronger.
C
It made the economy weaker.
D
It solved the problem of overproduction.
5

What is consumerism?

A
a pattern of wanting and buying new products
B
a pattern of lowering prices on farm-produced goods
C
a pattern of saving most of one’s money
D
a pattern of raising prices on store-bought goods
6

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

A
lost ownership of the stock.
B
could no longer speculate on stock.
C
had to make up the difference.
D
could no longer get credit.
7

In the 1920s, many rural banks failed because

A
banks had speculated in stocks.
B
consumers took their money out.
C
the stock market surged.
D
farmers could not repay their loans.
10

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

A
Prices increased along with consumer demand, and the economy grew.
B
Consumer demand increased, prices decreased, and the economy grew.
C
Prices increased, consumer demand decreased, and the economy grew.
D
Consumer demand decreased, prices decreased, and the economy slowed.
11

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

A
Consumers only bought a limited number of products.
B
Consumers refused to pay high prices for goods.
C
Consumers increased their spending and used only cash.
D
Consumers bought too many goods they could not afford.
12

In the 1920s, many rural banks failed because

A
the stock market surged.
B
banks had speculated in stocks.
C
consumers took their money out.
D
farmers could not repay their loans.
13

A part of the consumerism cycle is that manufacturers

A
do not advertise goods.
B
make fewer goods.
C
advertise goods.
D
sell goods only for cash.
14

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

A
Consumer demand increased, prices decreased, and the economy grew.
B
Consumer demand decreased, prices decreased, and the economy slowed.
C
Prices increased, consumer demand decreased, and the economy grew.
D
Prices increased along with consumer demand, and the economy grew.
16

What is consumerism?

A
a pattern of lowering prices on farm-produced goods
B
a pattern of wanting and buying new products
C
a pattern of saving most of one’s money
D
a pattern of raising prices on store-bought goods
17

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

A
could no longer get credit.
B
could no longer speculate on stock.
C
lost ownership of the stock.
D
had to make up the difference.
18

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

A
It made parts of the economy stronger.
B
It made the economy stronger.
C
It made the economy weaker.
D
It solved the problem of overproduction.
19

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

A
paid in installments.
B
bought it on speculation.
C
bought it on credit.
D
paid cash for it.

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