U.S. History Roaring Economy to Great Depression Quiz

What is consumerism? a. a pattern of wanting and buying new products b. a pattern of saving most of one's money c. a pattern of raising prices on store-bought goods d. a pattern of lowering prices on farm-produced goods

a. a pattern of wanting and buying new products

Which industry boosted consumerism in the 1920s, feeding economic growth? a. advertising b. electricity c. farming d. manufacturing

a. advertising

In the 1920s, the danger of buying stock on margin was that if the value of the stock dropped, borrowers a. had to make up the difference. b. lost ownership of the stock. c. could no longer speculate on stock. d. could no longer get credit.

a. had to make up the difference.

What effect did the overuse of credit have on the economy in the 1920s? a. It made the economy stronger. b. It made the economy weaker. c. It made parts of the economy stronger. d. It solved the problem of overproduction.

b. It made the economy weaker.

While consumerism during the 1920s boosted the economy, it also led to a. more savings. b. higher debt. c. lower debt. d. fewer stocks.

b. higher debt.

How did the overproduction of goods in the 1920s affect consumer prices, and in turn, the economy? a. Consumer demand increased, prices decreased, and the economy grew. b. Prices increased along with consumer demand, and the economy grew. c. Consumer demand decreased, prices decreased, and the economy slowed. d. Prices increased, consumer demand decreased, and the economy grew.

c. Consumer demand decreased, prices decreased, and the economy slowed.

Businesses and industries in the 1920s most closely followed the buying demands of a. government. b. farmers. c. consumers. d. manufacturers.

c. consumers.

Which statement best explains how farming affected the economic slowdown that led to the Great Depression? a. High demand was met with high output. b. Produce prices were constantly rising. c. Large machines made farms more efficient. d. Even though prices and demand were falling, production increased.

d. Even though prices and demand were falling, production increased.

In the 1920s, how did manufacturers make products faster and more cheaply? a. They reused old designs and models. b. They offered a smaller range of goods. c. They saved on costs by not advertising as much. d. They adopted Henry Ford's manufacturing techniques.

d. They adopted Henry Ford's manufacturing techniques.

What does a strong economy depend on the most? a. many investors speculating. b. many banks giving many people loans. c. most consumers buying on credit. d. most people's confidence in the economy.

d. most people's confidence in the economy.