Unit 6 part 1 test (Great Depression)

What was the initial cause of the Great Depression, as indicated by the Dow Jones Industrial Average?

• The stock market crash of 1929

• The failure of banks

• The Dust Bowl and agricultural depression

• The increase in protective tariffs

Answer explanation

The initial cause of the Great Depression, as indicated by the Dow Jones Industrial Average, was a sharp decline in stock prices that began in late October 1929. This decline was caused by a combination of factors, including over-speculation in the stock market, a contraction in the money supply, and a decrease in consumer spending. The Dow Jones Industrial Average, which tracks the performance of 30 large industrial companies, fell from a peak of 381.17 on September 3, 1929 to a low of 41.22 on July 8, 1932. This represented a decline of nearly 89%.

Which of the following was not a cause of the Great Depression?

• Excessive American loans to European countries

• Uneven distribution of wealth

• Installment buying

• Purchasing of stocks "on margin"

Answer explanation

The Great Depression was caused by a combination of factors, including the stock market crash of 1929, the failure of banks, overproduction of goods, and the unequal distribution of wealth.

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

This author wrote about the poor conditions farmers faced during the Dust Bowl

• Ernest Hemingway

• Upton Sinclaire

• F. Scott Fitzgerald

• John Steinbeck

**Look at image**

Why was the bill in the cartoon important to Franklin D. Roosevelt?

• He wanted to weaken the power of the Judicial branch (Supreme Court)

• He wanted to strengthen the power of impeachment.

• He wanted to strengthen federal govt power over state governments.

Which New Deal agency provided benefits for elderly Americans?

• The Farm Security Administration (FSA)

• The Works Progress Administration (WPA)

• The National Youth Administration (FSA)

• The Social Security Administration (SSA)

How did the Dust Bowl add to the Great Depression’s devastation?

• By affecting the shipping lanes out of Texas and Louisiana

• By affecting travel between the Atlantic and Pacific coasts

• By affecting farming regions in the Great Plains

• By affecting air travel across the U.S. from north to

  south

The Twenty-Second Amendment was passed in response to which event?

• The resignation of Richard Nixon after Watergate

• Herbert Hoover’s reelection defeat

• The election of Franklin D. Roosevelt to a fourth presidential term

• Bill Clinton’s impeachment trial

Unemployment during the Great Depression caused:

• Consumers put all their money in banks

• Consumers made so many purchases that businesses thrived

• Consumers could not afford to buy goods, resulting in businesses failing

• Consumers caused businesses to sell out of goods bc too many were being purchased

What was a result of the Hawley-Smoot Tariff?

• Foreign companies made tons of money off the US

• The US asked for loans from European countries

• Foreign nations increased their tariffs in response, leading to a decline in trade

• European nations prospered while US tanked