The U.S. Economy in the 1920s/Causes of Great Depression

How did the U.S. economy appear in the 1920s according to the learning material?

• The economy was in a constant decline.

• The economy looked healthy on the surface.

• The economy was extremely poor throughout the decade.

• The economy was the strongest it had ever been.

What significant economic event began in October 1929?

• The start of World War II.

• The discovery of the New Deal.

• The beginning of the Great Depression.

• The end of the Great Depression.

Despite the increase in income during the 1920s, what was the underlying condition of the U.S. economy?

• It was stable and showed no signs of problems.

• It was growing at an unprecedented rate.

• There were severe problems with the U.S. economy.

• It was completely dependent on agriculture.

In which year did the Great Depression begin?

• 1921

• 1929

• 1930

• 1940

What is known as over-production during the 1920s?

• Factories produced too few goods

• Factories produced too many durable goods

• People bought more appliances and cars

• The stock market crashed

What does under-consumption refer to in the context of the 1920s?

• People needed more appliances and cars

• Factories produced fewer goods than needed

• People did not need as many appliances and cars by the end of the decade

• The stock market was flourishing

Which of the following was an effect of The Great Depression?

• Rise in the stock market

• People out of work

• Schools opening more frequently

• The world economy booming

What action did Hoover take in response to The Great Depression as mentioned in the image?

• He reduced governmental involvement

• He closed banks and schools

• He employed more active governmental involvement

• He worked to increase shantytowns

What term is used to describe the practice of borrowing money to pay for stocks?

• Stock optimization

• Buying on margin

• Equity funding

• Debt leveraging

What event is considered the spark that triggered the Great Depression?

• The stock market crash in December 1929

• The stock market crash in October 1929

• The start of World War II

• The signing of the Treaty of Versailles