WorksheetsUnit 2: The Great Depression
Total questions: 20
Worksheet time: 10mins
Which economic problem helped cause the Great Depression?
Rapid increase in workers’ wages
Overproduction of goods
High consumer savings rates
Strict federal regulation of the stock market
Why did many banks collapse after the stock market crash?
Banks refused to lend money during the 1920s
Depositors rushed to withdraw their savings
Government ordered banks to close permanently
Investors suddenly paid back their loans early
The Hawley-Smoot Tariff contributed to the Depression by
Lowering the cost of imported goods
Encouraging countries to buy more U.S. products
Triggering a decrease in world trade
Reducing taxes on foreign companies
Hoover believed the economy would recover primarily through
Direct federal aid
Public employment programs
Voluntary cooperation and local action
Expanding union membership
What was the major goal of FDR’s First Hundred Days?
Ending Prohibition
Rapidly passing laws to restore stability
Increasing military spending
Reducing the number of federal agencies
A major change introduced by the New Deal was
a decreased role for the federal government
a shift of responsibility to state governments
increased federal involvement in citizens’ welfare
returning economic policy to the private sector
Programs like the CCC and WPA aimed to reduce suffering by
providing immediate cash payments to all families
creating jobs for unemployed Americans
cutting federal spending
raising corporate profits
The Social Security Act was primarily designed to
protect workers’ right to strike
support the elderly and unemployed
regulate the stock market
provide free healthcare to all Americans
Critics argued that the New Deal expanded federal power by
increasing tariffs on foreign goods
creating too many private charities
involving government directly in economic planning
reducing taxes on wealthy Americans
Supporters of the free-market system in the 1930s argued that
government should take control of major industries
economic downturns would fix themselves over time
public works projects were the only solution
the federal government should run all banks
What did “rugged individualism” emphasize?
Nationalizing key industries
Collective farms controlled by the government
Reliance on personal effort to overcome hardship
Using high taxes to redistribute wealth
What was a major criticism of FDR’s “court-packing plan”?
It weakened executive power
It was seen as an attempt to influence the Supreme Court
It forced Congress to expand welfare programs
It eliminated judicial review
Hoovervilles were evidence that
homelessness increased during Hoover’s presidency
government programs eliminated poverty
cities were becoming centers of economic growth
the federal government supported low-income housing
A major factor that worsened farming conditions in the Great Depression was
strict limits on crop production
repeated droughts and poor soil conservation
increased federal subsidies
growth of urban manufacturing jobs
Why did investors buying stocks “on margin” create instability?
It limited profits for stockbrokers
It required investors to pay in cash
It encouraged people to borrow money to buy stocks
It banned middle-class investments
The goal of FDR’s bank holiday was to
shut down all private banks permanently
reduce the number of wealthy depositors
restore trust by inspecting and reopening stable banks
allow foreign banks to operate in the U.S.
One reason many Americans supported the New Deal was that it
eliminated all unemployment
provided visible relief and work opportunities
reduced the size of the federal government
stopped immigration entirely
Groups such as Mexican American laborers were negatively affected by the New Deal because
they benefited most from AAA programs
many were excluded from work-relief programs
they received higher wages than white workers
they controlled major labor unions
Why did some argue the New Deal threatened free enterprise?
It relied heavily on business owners’ charity
It expanded government oversight of business
It decreased the number of federal regulations
It increased competition among corporations
FDR’s speeches often stressed helping those who “have too little,” reflecting his support for
reducing public jobs
giving aid to the nation’s wealthiest citizens
expanding federal responsibility for social welfare
eliminating government spending
