the great depression Flashcards
what are the two main sectors of the American economy?
industry and agriculture; human need and human progress
what part of agriculture was a major factor in the economy’s downfall?
the decline of the price of wheat; causes panic in agricultural market, and spreads to the industrial market
RUN ON THE STOCK MARKET!
what was president hoover’s stance on the GD?
he thought the economy would heal itself; he closed all banks when he realized
what other regions in the world were affected by the Great Depression?
Europe and Japan
in what order did the regions affected by the GD fall?
America, Europe, Japan
true or false: the Great Depression did not play a role in the start of WWII
FALSE! the GD lead to leaders in Europe trying to fix the economic problem…. the rise of nationalism, facism, and nazism followed
what is a “run on the stock market”?
when stockholders panic— they sell their stocks all at once, diminishing the stocks’ prices to nothing!!
what is buying on par/margin?
paying 10% of a stock share, owing the rest, but waiting until the value rises to pay the rest (profit!!)
when farmers realized the price of wheat was declining, they bought more land and grew more product. was this correct?
NO!! more product=decrease in value.
SUPPLY & DEMAND!
which sector of the economy was ignored in America, ultimately leading to the Great Depression?
agriculture! industry was seen as glamorous, agriculture wasn’t. both are needed for an economy to succeed
what are economies based on?
faith!! if consumers lose faith in economy, the economy falls because they stop buying things. if faith in the economy is strong, people buy things and help the economy.
