Great Depression Unit Test

Question 1

What production switch did factories make after WWI?

Answer 1

Factories switched from producing military products to producing consumer goods.

Question 2

As more goods came to the market, prices ________. Meanwhile, rising _______ gave consumers more to spend.

Answer 2

dropped
incomes

Question 3

Describe installment buying. Why was this type of buying attractive to consumers?

Answer 3

Installment buying is buying something using credit. This means you pay for it in small payments or installments over time + interest, consumers liked this because they were able to get consumer goods they wanted, but would not have to pay for it all right away especially if they could not afford it.

Question 4

What were some things Americans bought on installment?

Answer 4

Household appliances, cars, furniture.

Question 5

How did government policies help boost the economy?

Answer 5

-High tariffs [taxes] on imports or goods being brought into the U.S. from other countries encouraged people to buy American made products
- tax cuts

Question 6

What is the bull market? Is this a good market for consumers?

Answer 6

A bull market is a period of rising stock prices. This is good for consumers because they can make $ quickly by investing in the stock market.

Question 7

Describe what it means to buy on margin.

Answer 7

Buying on margin means borrowing money in order to buy stock, this type of buying/borrowing worked well only when the stock price went up.

Question 8

Which group of Americans did not benefit from the prosperity of the 1920s?

Answer 8

Farmers did not benefit from the prosperity of the 1920s. They produced so many extra crops during WWI but after the war the product was no longer needed. Farmers also had high debt from taking loans to expand their farms and buy new equipment.

Workers also did not wholly benefit from the 1920s prosperity. There was high unemployment and those who had jobs were unskilled where they received lower pay.

Question 9

Describe the outcome of the 1928 election.

Answer 9

Herbert Hoover won the election.

Question 10

Causes of the Great Depression

Answer 10

Uneven distribution of income

Overproduction

Surplus produce

Lagging wages

Unsafe banking structure

Uncontrolled stock speculation

Question 11

Uneven distribution of income:

Answer 11

An estimated 90% of the nation’s wealth was owned by 13% of the people.

Question 12

Overproduction:

Answer 12

Factories produced more goods than people could afford to buy. (At first, easy credit hid this).

Question 13

Surplus produce:

Answer 13

Farmers who had bought new equipment and better seeds produced more crops. The result was a surplus, or an amount that remains unneeded. Farm prices then fell (Supply goes up, demand goes down).

Question 14

Lagging wages:

Answer 14

Factory workers, whose wages lagged, could not afford the products they had helped make.

Question 15

Unsafe banking structure:

Answer 15

Banks were a major weakness in the economy. Federal and state governments had no plan to protect them or their customers. When a bank failed, people lost their money.

Question 16

Uncontrolled stock speculation:

Answer 16

Stock prices skyrocketed because it was too easy to buy stock “on margin.” On margin means people put a little money down and borrowed the rest when buying stock. Thus, they were heavily in debt. If prices rose, they could sell their stock, pay off the debt and keep the profit. But if prices dropped suddenly, they lost everything unless they sold quickly to minimize the amount of money they would lose. In October 1929, many tried to sell at the same time, stock markets plunged, and the Great Depression began.

Question 17

Hoovervilles

Answer 17

These places are unfit for human occupancy. The dwellings are built of brush, rags, sacks, broken pianos, odd bits of tin and sheet iron, pieces of canvas… Entire families… are crowded into hovels, cooking and eating in the same room. The majority of the shacks have no sinks or cesspools [underground storage for waste/sewage] for this disposal for kitchen drainage, and this together with other garbage, is thrown all over the ground.”

Question 18

Veterans march to washington

Answer 18

Like most people, veterans were hard hit by the depression. They protested their bonus payment in D.C. Hoover used forced to disperse them and did not pay their bonuses early.

Question 19

Bank Faliure’s

Answer 19

The Depression caused banks to fail and people to lose their savings. Almost 4,000 banks closed in 1933.

Question 20

Why did so many people rely on handouts

Answer 20

During the depression, people lost their homes & jobs and were suffering from lack of food. Many people relied on hand outs.

Question 21

Impacts of the Great Depression

Answer 21

1. Unemployment
2. Homelessness
3. Hunger
4. Bank closings/failures
5. Protests (especially WWI veterans)
6. Need for relief from the government

Question 22

Hoover’s take on bettering the depression

Answer 22

Question 23

Why did people blame Hoover?

Answer 23

Hoover is slow to respond

Hoover does not believe role of federal (central) government to provide direct assistance to citizens

Question 24

Hoover vs. FDR Policy

Answer 24

Question 25

Franklin Delano Roosevelt (FDR):

Answer 25

U.S. President from 1933-1945

Democrat; got the government more involved in the economy than ever before

Created the “New Deal” to try and end the depression and support Americans

The only president to be elected to 4 terms

suffered paralysis due to polio

Question 26

What was the Hundred Days?

Answer 26

The session of Congress that lasted from right after FDR’s inauguration in March of 1933 to June in which FDR worked closely with Congress to take immediate action in addressing the economic crisis.
(Relief, recovery, reform)

Question 27

How did FDR deal with the banking crisis immediately after taking office?

Answer 27

The day after he became president, FDR declared a bank holiday and closed all banks for 4 days. Only banks strong enough to re-open could. He proposed the Emergency Banking Relief Act which created more government control over banks.

Question 28

How did FDR connect with the American people?

Answer 28

FDR gave a series of radio talks known as the “fireside chats” where he reassured people and discussed his ideas and programs.

Question 29

“NEW DEAL” PROGRAMS

Answer 29

CCC – Civilian Conservation Corps (RELIEF)

FERA – Federal Emergency Relief Act (RELIEF)

WPA – Works Progress Administration (RELIEF)

NRA – National Recovery Act (RECOVERY)

TVA – Tennessee Valley Authority (RECOVERY)

AAA – Agricultural Adjustment Act (RECOVERY)

REA – Rural Electrification Administration (RECOVERY)

FDIC – Federal Deposit Insurance Corporation (REFORM)

SSA – Social Security Act (REFORM)

SEC - Securities and Exchange Commission (REFORM)

Glass-Steagall Act (REFORM)

Question 30

CCC – Civilian Conservation Corps:

Answer 30

provided jobs for young men to plant trees, build bridges and parks, and set up flood-control projects

RELIEF

Question 31

FERA – Federal Emergency Relief Act:

Answer 31

Provided money for relief projects for the unemployed
(put money back into the economy)

RELIEF

Question 32

WPA – Works Progress Administration:

Answer 32

employed men and women to build government buildings, airports, schools, roads, bridges; employed artists, writers and musicians

RELIEF

Question 33

NRA – National Recovery Act:

Answer 33

regulated business by helping to get workers higher wages; setting prices for goods; helped with working conditions

RECOVERY

Question 34

TVA – Tennessee Valley Authority:

Answer 34

built dams to stop flooding and provided cheap electricity to 7 southern states; set up schools and health centers

RECOVERY

Question 35

AAA – Agricultural Adjustment Act:

Answer 35

Paid farmers not to grow certain crops to combat overproduction on farms

RECOVERY

Question 36

REA – Rural Electrification Administration:

Answer 36

paid workers to help bring cheap electricity to rural areas

RECOVERY

Question 37

FDIC – Federal Deposit Insurance Corporation:

Answer 37

insured savings accounts in banks approved by the government up to $100,000

REFORM

Question 38

SSA – Social Security Act:

Answer 38

set up a system of pensions for the elderly, the unemployed, dependent children and people with disabilities

REFORM

Question 39

SEC - Securities and Exchange Commission:

Answer 39

gov. agency created to regulate (control) the stock market

REFORM

Question 40

Glass-Steagall Act:

Answer 40

in addition to creating the FDIC, this law separated commercial banking from investment banking (ex: banks cannot use customer’s deposits to invest in stocks); repealed in 1999

REFORM

Question 41

RELIEF

Answer 41

(help for those who needed it)

Question 42

RECOVERY

Answer 42

(restarting the economy)

Question 43

REFORM

Answer 43

(preventing another depression)

Question 44

FDR AND THE SUPREME COURT

Answer 44

Question 45

What conditions created the dust bowl?

Answer 45

Modern farming equipment made it easier to clear huge plots of land which removed sod layer (held soil in place)

Extreme Drought (no rain)

Question 46

Dust Bowl

Answer 46

a period of severe dust storms that greatly damaged the ecology and agriculture of the US during the 1930s

Question 47

Eleanor Roosevelt

Answer 47

First Lady, wife of FDR. She acted as FDR’s “eyes and ears,” traveling the country to identify issues the president should address or evaluate how some of his programs were working. Changed the role from largely ceremonial to one with a political agenda.

Question 48

American Federation of Labor (AFL)

Answer 48

the largest labor union in the U.S. It was only open to skilled workers (workers with a trade)

Question 49

Congress of Industrial Organizations (CIO)

Answer 49

a new union that was open to all including unskilled workers, women, and minorities.

Question 50

Sit-down strike

Answer 50

a bargaining tactic used by workers in which employees went on strike but instead of leaving their jobs, they stayed in their place of employment and refused to move. This was done to prevent the owner from bringing replacement workers.

Question 51

Wagner Act

Answer 51

guaranteed a worker’s right to join a union
guaranteed collective bargaining, the right of unions to negotiate pay and benefits for their members

Question 52

Fair Labor Standards Act

Answer 52

set a minimum wage (25 cents an hour)

set maximum weekly work hours (44)

established time and a half for overtime work ended some child labor

Question 53

Why were movies popular during the Depression?

Answer 53

Movies were popular during the Great Depression because they helped to distract people and served as an escape from the worries and problems of the depression.

Question 54

What was FDR’s “black cabinet”?

Answer 54

FDR’s “Black Cabinet” was a group of African American advisers to the president. FDR gave African Americans a bigger role in government than ever before. Even though FDR did support some civil rights measures, he was popular with African Americans because of his efforts on behalf of the poor and unemployed.

Question 55

How do some of today’s political issues date back to the Depression?

Answer 55

Some of today’s political issues date back to the Great Depression because of the changes that happened during that time. During FDR’s presidency, the figure of the president became more powerful and so did the federal government. Social programs that were created were run by the federal government as opposed to local or state governments. FDR’s strategies continue to fuel debate over the role of government in the economy and in general.

Question 56

Why did New Deal programs include funding to support the Arts & Culture?

Answer 56

Way to find relief and escape during the economic crisis

Employ more people

Benefited our country

Question 57

Overall, do you think that minorities gained more under Roosevelt than they had before? Explain.

Answer 57

Failed to pass some civil rights bills

Mexican Americans were also affected by FDR’s reforms, many deported

Black cabinet

more women held government positions than ever before

Question 58

What conditions on the Great Plains led to the environmental phenomenon known as the “Dust Bowl?”

Answer 58

The Dust Bowl was a region of the Great Plains that was impacted by severe dust storms during
the 1930s. Drought (no rain), heat waves, overuse of the land, overgrazing by cattle, and removal of the sod (top layer of soil) by farmers, all contributed to this.

Question 59

What effects did the Dust Bowl have?

Answer 59

The Dust Bowl brought about tremendous damage to farms throughout the Great Plains and took years to subside. Many families felt they had no choice but to leave their farms and relocate to states like California, looking for farm work.

Question 60

For the New Deal

Answer 60

• the New Deal saved our democratic system
• ended the banking crisis
• provided millions of jobs
• helped farmers
• improved infrastructure and set aside national parklands
• brought electricity to areas
• Social Security provided for the elderly, unemployed and disabled

Question 61

Against the New Deal

Answer 61

• the government became too powerful (intruded and threatened freedom and private property)
• the New Deal spent more money than the govt. had (deficit spending)
• the New Deal created national debt, the total sum of money our govt. owes
• the New Deal did not achieve its goal of ending the Depression

Question 62

HOOVER

Answer 62

• believed in laissez-faire (hands off), limited govt.
• encouraged voluntary assistance and measure by business
• Republican; politically conservative, meaning he believed in less government control and more individual freedom in the economy

Question 63

FDR

Answer 63

• expanded the role of government in supporting the public and regulating business, banks and the stock market
• Democrat; politically liberal, meaning he believed in government action that would bring about reform