AnswersEAP-Virginia and US History B CRRoaring Economy to Great Depression

Roaring Economy to Great Depression Answers

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

A
Consumers only bought a limited number of products.
B
Consumers bought too many goods they could not afford.
C
Consumers refused to pay high prices for goods.
D
Consumers increased their spending and used only cash.
4

What does a strong economy depend on the most?

A
many investors speculating.
B
many banks giving many people loans.
C
most consumers buying on credit.
D
most people’s confidence in the economy.
5

Which statement best explains how farming affected the economic slowdown that led to the Great Depression?

A
High demand was met with high output.
B
Produce prices were constantly rising.
C
Large machines made farms more efficient.
D
Even though prices and demand were falling, production increased.
6

In the 1920s, many rural banks failed because

A
banks had speculated in stocks.
B
farmers could not repay their loans.
C
the stock market surged.
D
consumers took their money out.
7

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

A
It made the economy stronger.
B
It made the economy weaker.
C
It made parts of the economy stronger.
D
It solved the problem of overproduction.
8

What is consumerism?

A
a pattern of wanting and buying new products
B
a pattern of saving most of one’s money
C
a pattern of raising prices on store-bought goods
D
a pattern of lowering prices on farm-produced goods
9

A part of the consumerism cycle is that manufacturers

A
do not advertise goods.
B
sell goods only for cash.
C
advertise goods.
D
make fewer goods.
10

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

A
bought it on credit.
B
paid cash for it.
C
paid in installments.
D
bought it on speculation.
11

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

A
had to make up the difference.
B
lost ownership of the stock.
C
could no longer speculate on stock.
D
could no longer get credit.
12

While consumerism during the 1920s boosted the economy, it also led to

m
more savings.
h
higher debt.
l
lower debt.
f
fewer stocks.
13

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

C
Consumer demand increased, prices decreased, and the economy grew.
P
Prices increased along with consumer demand, and the economy grew.
C
Consumer demand decreased, prices decreased, and the economy slowed.
P
Prices increased, consumer demand decreased, and the economy grew.

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