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US History Chapter 12

Vocabulary 1

Question: agricultural workers who work on land owned by someone else
Answer: tenant farmers

Question: General who dispersed protestors in the capitol by ordering federal troops to fire on them with tear gas
Answer: Douglas MacArthur

Question: The theory that money invested in banks and businesses will work its way through the system to laborers
Answer: trickle-down economics

Question: The periodic expansion and contraction of the economy
Answer: business cycle

Question: the occasion of the stock market crash
Answer: Black Tuesday

Vocabulary 2

Question: President when the stock market crashed
Answer: Herbert Hoover

Question: government efforts to encourage or pressure Mexican immigrants to return to Mexico
Answer: repatriation

Question: Risky stock purchases made by investors with the hope of high returns
Answer: speculation

Question: Dust Bowl refugees who moved westward to find work
Answer: Okies

Question: World War I veterans who marched to demand payment of money promised by Congress
Answer: Bonus Army

Questions 1

Question:
Answer: a. farmers

Question: Which of these factors helped hide economic problems in the 1920s?
a. Investors lost confidence in the market.
b. Farmers sold crop surpluses to pay off their debts.
c. Americans purchased many consumer goods on credit.
d. Wages increased at the same pace as worker productivity.
Answer: c. Americans purchased many consumer goods on credit.

Question: In 1929, the stock market crashed because
a. the Federal Reserve increased the money supply.
b. Germany ceased reparation payments to the United States.
c. investors lost confidence in the market and rushed to sell their shores.
d. depositors lost their investments and tried to withdraw all of the savings from banks.
Answer: c. investors lost confidence in the market and rushed to sell their shores.

Question: Which factor contributed to the spread of the Great Depression overseas?
a. Europe increased trade to the United States.
b. Congress lowered tariffs on foreign imports.
c. American industry reduced production levels.
d. The United States curtailed investment in Europe.
Answer: d. The United States curtailed investment in Europe.

Question: During the 1920s, the United States economy moved through which phase of the business cycle?
a. expansion
b. peak
c. contraction
d. trough
Answer: a. expansion

Questions 2

Question: What event occurred on Black Tuesday?
a. Unemployment reached nearly 25 percent.
b. The Federal Reserve lowered interest rates.
c. Investors sold more than 16 million shares of stock.
d. Germany stopped reparation payments to the United States.
Answer: c. Investors sold more than 16 million shares of stock.

Question: European countries reacted to the Hawley-Smoot Tariff by
a. increasing global trade.
b. passing high protective tariffs.
c. importing more American goods.
d. lowering prices on European goods.
Answer: b. passing high protective tariffs.

Question: What economic condition did economist John Maynard Keynes believe caused the Great Depression?
a. lack of government intervention
b. strict controls on stock speculation
c. too much oversight of the banking system
d. limits on production and consumer spending
Answer: a. lack of government intervention

Question: Farmers contributed to the problems that led to the Dust Bowl by
a. putting down new layers of topsoil.
b. moving off of the plains to find new farmland.
c. damming western rivers and using irrigation techniques.
d. using intensive farming practices that removed protective grasses.
Answer: d. using intensive farming practices that removed protective grasses.

Question: President Hoover urged Congress to institute the (Reconstruction Finance Corporation) RFC because he believed that the economy suffered from
a. a lack of credit.
b. over-employment.
c. too much government regulation.
d. a concentration of wealth in large businesses.
Answer: a. a lack of credit.

Questions 3

Question: How did the uneven distribution of the nation’s wealth lead to the depression?
a. Farmers had huge surpluses of crops but demand for them decreased drastically so they went into debt.
b. Acquiring a line of credit was easy, but it caused more debt for people who could not make payments.
c. Wealthy people grew wealthier and had money to spend on consumer products, but this spending was not enough to keep the economy booming.
d. all of the above
Answer: d. all of the above

Question: At the onset of the Great Depression, urban unemployment
a. decreased slightly.
b. stayed about the same.
c. increased slightly.
d. increased dramatically.
Answer:

Question: President Hoover responded cautiously to the Great Depression because he
a. thought that the business cycle would correct itself.
b. was distracted by the giant dust storms in the Great Plains.
c. did not have any experience with business methods and economic theory.
d. believed that the federal government needed to take an active approach to recovery.
Answer: a. thought that the business cycle would correct itself.

Question: The unemployment rate among African Americans was
a. nearly double the national rate.
b. slightly higher than the national rate.
c. about the same as the national rate.
d. slightly lower than the national rate.
Answer:

Question: Congress instituted the Reconstruction Finance Corporation (RFC) to loan money to
a. European nations so that they could pay off their war debts.
b. investors so that they could engage in more stock speculation.
c. depositors so that they could withdraw their savings from banks.
d. banks so that they could lend money to businesses to stimulate economic activity.
Answer: d. banks so that they could lend money to businesses to stimulate economic activity.