#14 The Great Depression

One result of President Franklin D. Roosevelt's New Deal was that it 1. raised the national debt 2. weakened labor unions 3. deregulated the stock market 4. repealed federal antitrust laws

1. raised the national debt

What was an underlying cause of the Great Depression? 1. unequal distribution of income throughout the 1920s 2. adoption of high federal income tax rates during the 1920s 3. failure of American farmers to produce enough food after World War I 4. rapid increase in federal defense spending following World War I

1. unequal distribution of income throughout the 1920s

What was the Great Depression?

10 years of economic crisis (money problems) in the world.

During the 1920s, installment buying, income inequality, and stock market speculation contributed to the 1. introduction of supply-side economics 2. return of laissez-faire economic principles 3. economic weaknesses that helped bring about the Great Depression 4. decision to lower tariff rates

3. economic weaknesses that helped bring about the Great Depression

As part of the New Deal, the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC) were created to 1. allow for a quick recovery of stock prices 2. provide direct loans to businesses 3. protect individual investors from stock fraud and bank failure 4. allow banks and companies to invest in the stock market

3. protect individual investors from stock fraud and bank failure

President Franklin D. Roosevelt's court-packing proposal was criticized because it 1. attempted to give more power to the judicial branch 2. directly violated the Federal-state relationship 3. threatened the system of checks and balances in the Federal Government 4. violated the constitutional guarantee of the right to legal counsel

3. threatened the system of checks and balances in the Federal Government

Which heading would be most appropriate for the partial outline below? I. ____________________________________ A. Wages lagging behind the cost of living B. Overproduction of consumer goods C. Excessive buying on credit 1. Mercantilist Economic Theory 2. Features of a Bull Stock Market 3. Monopolistic Business Practices 4. Causes of the Great Depression

4. Causes of the Great Depression

Which of the following statements is an effect of the Great Depression? 1. Overproduction of farm products led to decreased prices. 2. Easy credit and installment buying allowed for people to buy more goods. 3. Buying stock on speculation was a common practice. 4. Many people had to depend on bread lines and soup kitchens to feed their families.

4. Many people had to depend on bread lines and soup kitchens to feed their families.

What was one economic consequence of President Franklin D. Roosevelt's New Deal? 1. Bank deregulation encouraged investment. 2. Major industries were nationalized. 3. Balanced budgets became the model for economic stability. 4. The role of the federal government in the economy expanded.

4. The role of the federal government in the economy expanded.

During the 1930s, poor land management and severe drought conditions across parts of the Midwest resulted in the 1. formation of the United States Department of Agriculture 2. creation of wheat surpluses 3. growth of the Granger movement 4. development of Dust Bowl conditions on the Great Plains

4. development of Dust Bowl conditions on the Great Plains

The Social Security Act (1935) is considered an important program because it 1. brought about a quick end to the Great Depression 2. provided employment for those in need of a job 3. established a progressive income tax 4. extended support to elderly citizens

4. extended support to elderly citizens

President Herbert Hoover's response to the Great Depression was often criticized because it 1. wasted money on new social programs 2. caused widespread rioting and looting in major cities 3. raised taxes on businesses and the wealthy 4. failed to provide direct relief for the neediest persons

4. failed to provide direct relief for the neediest persons

What was the primary motive behind President Franklin D. Roosevelt's 1937 proposal to add members to the Supreme Court? 1. removal of Republican justices from the Court 2. ending the Court's use of judicial review 3. assuring United States neutrality at the start of World War II 4. protection of New Deal programs from unfavorable Court decisions

4. protection of New Deal programs from unfavorable Court decisions

What was the Dust Bowl?

A drought (long time without rain) in the Midwest of the US caused farmers crops to die. Wind picked up the dust from the farms and caused dust storms.

What does unequal distribution of wealth mean?

A few people are very, very rich and many people are very, very poor

What were some criticisms of the New Deal?

A. It gave government too much power B. It was too expensive for the country C. It creates a welfare state and makes people lazy

What did FDR want to change about the Supreme Court?

Change the number of justices (judges) from 9 to 14. (But this was unconstitutional too.)

How did President Hoover respond to the economic problems of the Great Depression?

He did nothing.

What was installment buying?

People bought things they could not afford and paid for them over time.

What happened because of the Stock Market Crash of 1929?

People lost lots of money, banks went out of business and 25% of people were unemployed (had no jobs)

What was a Hooverville?

Shantytowns or camps where homeless people lived because they lost their houses during the Great Depression.

What was Franklin D. Roosevelt's (FDR) plan to end the depression?

The New Deal.

What was part of the New Deal?

The government spent money to give people jobs, Social Security Program was started, and the FDIC for banks was started.

How did people who had lost their money, homes and jobs get food?

They stood in bread lines and went to soup kitchens for free food.

What did the Supreme Court say about some of FDR's New Deal Programs?

They were unconstitutional.

How was overproduction a cause of the Great Depression?

Too many goods were produced and there were not enough buyers.

How did the Great Depression end?

WWII started and there were many jobs making weapons and goods in factories and growing crops.