Module 9 Summative Assessment

What happened to the agricultural industry following WWI?

• Prices plummeted and many farmers unable to pay back loans went into foreclosure

• Production fell due to unpredictable weather patterns caused by global warming

How did many Americans respond to a steady increase in the Dow Jones Industrial Average during the 1920s?

• They began engaging speculation and buying on the margin.

• They increased savings to pay off their installment loans and mortgages.

What happened on October 29, 1929?

• The stock market crashed.

• World War II started.

How did Black Tuesday affect the national economy?

• The economy plummeted and unemployment skyrocketed.

• The governemnt increased the price of commodities to offset costs.

Why was the Federal Reserve unable to supply money to help banks?

• The government based money circulation on the Gold Standard.

• The Federal Reserve required Presidential approval to print money.

How was the goods and services industries impacted by the stock market crash?

• In three years, the Gross National Product was nearly cut in half

• The stock market crash increased consumer demand.

How did the stock market crash affect employment?

• In four years, the unemployment rate went from 3% to 25%

• In four years, nearly half the population was on welfare.

Why did the automobile and construction industry begin to economically suffer by 1930?

• Overproduction

• High Tariffs

Which best describes the distribution of income in the 1920s?

• A significant gap in income inequality

• few people earning above the standard of living

What is the purpose of the Dow Jones Industrial Average?

• a measure of the economy based on the price of stock in companies

• an average rate of production of America's largest corporations