UNIT 3: roaring economy to great depression Flashcards
Which statement best explains how farming affected the economic slowdown that led to the great depression?
even though prices and demand were falling, production increased
What is consumerism?
A pattern of wanting and buying new products
in the 1920s, how did manufacturers make products, faster and more cheaply?
They adopted Henry Ford’s manufacturing techniques
Which of the following best explains what happens when consumers think the economy is struggling?
People spend less, businesses produce less, and unemployment rises
A part of the consumerism cycle, is that manufacturers
Advertise goods
What effect did the overuse of credit have on the economy in the 1920s?
It made the economy weaker
businesses and industries in the 1920s, most closely followed the buying demands of
Consumers
In the 1920s, the danger of buying stock on margin was that if the value of stock dropped, borrowers
Had to make up the difference
How did the overproduction of goods in the 1920s affect consumer prices, and in turn, the economy?
consumer demand decreased, prices, decreased, and the economy slowed
Which statement best explains how manufacturers contributed to the economic slowdown that led to the great depression?
they were over producing goods
While consumerism during the 1920s boosted the economy, it also led to
Higher debt
How did consumers weaken the economy in the late 1920s?
Consumers bought too many goods they cannot afford
During the 1920s, people would buy stock on margin, which meant that they
Bought it on credit
in the 1920s, many rural banks failed because
farmers could not repay their loans
