AnswersNY-US History and Government Term 2 HillcrestAmerican Life in the Great Depression

American Life in the Great Depression — Unit test Answers

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1
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Read the scenario. The state of Maine has the oldest population in the United States, with a median age of about 45. Nearly one in five people in Maine are senior citizens. Most senior citizens there are retirees.

A
Businesses have more options when choosing what to produce.
B
Businesses must offer higher wages and benefits to attract workers.
C
Businesses have difficulty finding customers for their goods and services.
D
Businesses must make smart choices about the resources they purchase.
2
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How will a decrease in personal income affect the market?

A
It will make goods cheaper to produce.
B
It will make stores attempt to sell more goods.
C
It will make consumers want to buy goods rather than save.
D
It will make consumers buy fewer goods and demand lower prices.
3

By instituting government oversight on banks and investments, Franklin Roosevelt

r
reinforced the policies of Herbert Hoover.
h
hoped to create jobs and get reelected.
p
prompted Americans to take their money out of banks.
h
hoped to avoid another stock market crash.
4

Why were bank failures common during the Depression?

A
Many people could not pay what they owed to banks.
B
Many people took out new loans.
C
Many people put more money into the banking system.
D
Many people stopped spending money.
5

New Deal regulation of the banking industry resulted in the creation of

A
the National Recovery Administration.
B
the Civilian Conservation Corps.
C
the Public Works Administration.
D
the Federal Deposit Insurance Corporation.
6

In addition to giving retirees money, Social Security was intended to directly stimulate the economy by

A
requiring employers to pay a new tax.
B
opening up jobs for younger people.
C
financing the activities of Townsend clubs.
D
requiring retirees to spend their money in the US.
7

In the 1920s, many rural banks failed because

A
banks had speculated in stocks.
B
farmers could not repay their loans.
C
the stock market surged.
D
consumer demand for goods decreased.
9

Which best explains what weakened the stock market in the late 1920s?

A
Consumers used cash for goods.
B
Speculators bought on margin.
C
Farmers underproduced crops.
D
Manufacturers increased prices.
10

How did the events surrounding the Bonus Army in 1932 affect people’s attitudes?

A
More Americans wanted MacArthur to be president.
B
More Americans began to dislike Hoover.
C
More Americans joined the Bonus Army.
D
More Americans wanted helped from the RFC.
11

During the 1930s, the large area of farmland experiencing droughts was known as

A
the Depression.
B
the Dust Bowl.
C
the Appalachians.
D
the Rockies.
12

What is an essential feature of a free-enterprise system?

A
Consumers have choices.
B
Anyone can start a business.
C
Companies compete among themselves.
D
Governments pass laws to protect resources.
13

How did Herbert Hoover respond to the demands of the Bonus Army?

A
by using military force against its members
B
by offering its members jobs in the military
C
by ignoring it to focus on economic issues
D
by offering its members government jobs
14

As governor of Louisiana, Huey Long

A
dismissed New Deal programs and promoted his own.
B
increased taxes on the wealthiest residents of his state.
C
signed the Conservative Manifesto to undo the New Deal.
D
became a very unpopular political figure nationally.
15

Which best describes what people could buy on credit in the 1920s?

A
People could buy only expensive goods, such as cars.
B
People could buy stocks and goods from most stores.
C
People could not buy stocks but could buy expensive items.
D
People could buy only essential goods from limited stores.

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