Boom and Bust

Question 1

What was the most likely reason why consumers stopped buying things in the 1920s?

Revolt · Accepted Answer

B: Consumers could not longer afford to buy everything they wanted.

Question 2

In the end, consumers buying products and the economy began to .

Revolt · Accepted Answer

A: began; C: stopped; D: slow down

Question 3

How does a person use credit to make a purchase?

Revolt · Accepted Answer

B: by making a promise to pay at some point in the future

Question 4

In order for "buying on the margin" to work, stock values have to .Due to speculation, stock prices .

Revolt · Accepted Answer

A: rise; D: rose

Question 5

Why did stock prices drop so quickly in 1929?

Revolt · Accepted Answer

C: Investors panicked when prices fell, and they tried to sell their stocks as quickly as possible.

Question 6

What happened when businesses cut production?

Revolt · Accepted Answer

B: Some workers lost their jobs.

Question 7

"Overproduction” means that the amount of goods being made is the amount of goods being sold.

Revolt · Accepted Answer

B: more than

Question 8

Why was this a weakness? Check all of the boxes that apply.

Revolt · Accepted Answer

A: If lenders try to collect the money they are owed and can’t collect, lenders may go out of business.; B: If debts cannot be collected on a wide scale, many workers will lose their jobs.

Question 9

Which factor(s) did you identify? Check all of the boxes that apply.

Revolt · Accepted Answer

A: stock market speculation; B: too much buying of stocks on margin; C: low farm prices; D: bank failures; E: too much reliance on consumer credit; F: a drop in consumer spending; G: industrial overproduction; H: failing consumer confidence

Boom and Bust Answers

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