The Great Depression

Which event occurred on Black Tuesday?

• many factories closed

• many banks closed

• many people lost their homes

• the stock market crashed

President Franklin Roosevelt asked Congress to pass a series of acts called the New Deal. Which is one way the New Deal helped people during the Great Depression?

• It gave all people the right to vote. 
• It created programs to put people back to work.    
• It let all new immigrants become American citizens. 
• It let people travel around the country freely. 

The Civilian Conservation Corps (CCC) and the Works Progress Administration (WPA) were both New Deal programs developed to address the problem of

• excessive stock market speculation
• high unemployment
• increased use of credit
• limited income of senior citizens

The Tennessee Valley Authority is significant because it hired people to

• deliver food to the poverty-stricken Dust Bowl residents

• build dams and generators that provided electricity

• work on farms to help stabilize agriculture

• publish important facts about businesses

Which New Deal program was responsible for supporting farmers and supplying electricity to rural areas?

• Civilian Conservation Corps

• Works Progress Administration

• Tennessee Valley Authority

• Works Progress Authority

buying stocks with loans from brokers

• Stock loan

• Buying on a margin

• Tariff

• Subsidy

10. A supporter of Keynesian economics would criticize the laissez faire of Adam Smith because it

• tends to shift purchasing power from the wealthy to the poor

• absolves government in resolving economic problems

• reduces the role of the individual in economic decision making

• accelerates the amount of investment capital available to entrepreneurs

Which of the following actions is evidence that economic liberalism is shifting towards the left?

• decreasing regulation of banking systems

• decreasing number of social welfare programs

• increasing economic isolationism between nations

• increasing number of bailouts being offered to important industries

A Keynesian economist would most likely respond to the writer’s view with

• Disagreement, because the writer fails to recognize the role of the state in reducing marketplace fluctuations.

• Agreement, because the writer recognizes that there are actually some benefits to an economic recession.

• Agreement, because the writer acknowledges the inevitability of extensive economic fluctuations

• Disagreement, because the writer ignores the need for the state nationalization of failing enterprises.

Which was a guiding principle of New Deal economic policies?

• “Rugged individualism” will end social inequality
• Government must assume greater responsibility for helping the unfortunate
• Antitrust legislation could destroy the free enterprise system
• State governments should have more power over the economy than the national government