The Great Depression and New Deal

All of the following were root causes of the Great Depression except

• buying on margin

• Overly generous wage increases in US factories

• A growing imbalance between rising productivity & purchase power

• Unsound banking practices

Answer explanation

First, notice the question ask not.

Second, if you chose the incorrect answer you chose the opposite of what is true. Remember, economic downturns are linked with low wages and high unemployment rates.

A significant cause of the Great Depression was that

• Some banking policies were unsound and were unregulated

• A decrease in protective tariffs had opened American business

• Many Americans failed to put their savings into banks

• People were unable to find jobs because of the failure of banks.

Which description best fits the cause of the Great Depression provided?

Cause: Overproduction of agricultural products

• During WWI, the War Industry Board (WIB) encouraged manufacturers to produce war related items, not consumer related items. Once the war was over, manufactures switch to making consumer products (like the radio) in such quantities that they were able to lower the price of their product to sell more of it, making more money.

• During WWI, the Food Administration encouraged farmers to produce enough food for the U.S. and her allies. Once the war was over, farmers continued using the production methods to produce food to their detriment - they grew too much food to sell. Their product went bad and farmers began losing money.

• During WWI, the Food Administration encouraged farmers to produce enough food for the U.S. and her allies. Once the war was over, farmers continued using the production methods to produce food to their detriment - they grew too much food to sell. They dropped the price of their good and earned a lot money.

• During WWI, the War Industry Board (WIB) encouraged manufacturers to produce war related items, not consumer related items. Once the war was over, manufactures switch to making consumer products (like the radio) in such quantities that they were forced to lower the prices to move the product off the shelf and make what money they could.

What was a major impact on the Great Depression?

• Many Americans struggled with financial stability due to the inability to find jobs.

• America saw a rise in the number of jobs available during the 30s

• Very few Americans faced financial instability during the Depression

• The American economy was growing rapidly during the 30s

One long range effect of the Great Depression was that many people

• Grew to like President Hoover

• Became risk takers in the Stock Market

• Developed habits of saving and thriftiness

• Came to believe in small government

President Hoover's belief that the problems of the Depression could best be solved by

• Nationalizing major industries

• Requiring businesses to pay minimum wage

• Relying mostly on private enterprise and individual initiative

• Creating government job programs

When the Great Depression began in 1929, the most common belief supported by the Republican Party and Herbert Hoover was that

• An increase in defense spending would stimulate the economy

• Unemployed workers should receive Federal unemployment assistance

• The government should assume control of all industries

• The economy would recover on its own

What is one reason for shantytowns (Hoovervilles) springing up across America?

• The federal government was providing direct aid to the people in form of employment

• The federal government refused to provide direct federal aid to the homeless

• The federal government's efforts to help the residents return to their farms

• The federal government's emergency relief programs to provide food to the poor

What caused the changes to population in the Great Plains States between 1930 - 1940?

• An increase in African American migrants due to the Great Migration

• A decrease in the number of Native Americans living in the region because of their forced resettlement onto reservations

• An increase in the number factory jobs available to immigrants coming to the US

• A decrease in the success of Farms and Farmers due to drought, overuse of land, and frequent dust storms

What is another name for the Dust Bowl region of the U.S.

• Pacific West

• Eastern Seaboard

• Midwest

• Great Plains