The Great Depression Quiz 1-2
_____ 1. A significant cause of the Great Depression of the 1930’s was that
A. some banking policies were unsound and had led to the overexpansion
of credit
B. a decrease in protective tariffs had opened American business to
competition from abroad
C. a wave of violent strikes had paralyzed the major industries
D. consumer goods were relatively inexpensive
_____ 2. An important factor contributing to the start of the Great Depression
in the United States was the
A. increase in military spending
B. failure to maintain the gold standard
C. reduction of tariff rates
D. uneven distribution of wealth
_____ 3. Which situation was a basic cause of the Great Depression?
A. continued increases in wages for workers
B. excessive profits for farmers
C. overregulation of the stock market
D. overproduction of consumer goods
_____ 4. Which conditions are most characteristic of an economic depression?
A. high unemployment and overproduction
B. large business investments and low taxes
C. too much money in circulation and high stock prices
D. high employment and increased real estate investments
_____ 5. Which factor contributed most to the situation shown in the cartoon?
A.
B.
C.
D.
low tariff rates
shortages of consumer goods
nonregulation of banks
creation of a national bank
_____ 6. Which economic factor was a major cause of the Great Depression?
A. purchase of stocks on credit
B. increases in taxes on business
C. reduction of tariffs on imports
D. failure to produce enough consumer goods
7. Based on the photograph, state one effect the Great Depression had on many
Americans.
8. Fill in the letter (in the above diagram) with the short version of the word. You
should have 8 abbreviations on the chart.
Recovery (RY)
Prosperity (P)
Recession (RC)
Depression (D)
Short Answer
9. Discuss problems faced by the American people during the Great Depression of
the 1930s.
Answers
1. Correct Answer Number: ​
A
Explanation: ​
During the “roaring twenties” many people bought new consumer good
such as cars and washing machines on credit. Many also invested in the growing US
stock market with borrowed money (stocks bough “on margin”). This increased
debt, combined with a lack of oversight by any government agencies, was a
contributing factor to the great depression.
2. D
3. D
4. A
5. C
6. A
7. Answers will vary
8. P, RC, D, RY, P, RC, D, RY
9. Answers will vary