CFA 6 Great Depression and New Deal Study Game

Which economic pattern of the 1920s most clearly foreshadowed the Great Depression?

• Government programs that limited investment

• Declining use of installment plans

• Excessive stock speculation fueled by credit

• Rapid wage growth outpacing production

Evaluate how the uneven distribution of wealth in the 1920s contributed to the severity of the Great Depression.

• Government wealth redistribution programs destabilized the economy

• Farmers and workers had rising incomes that fueled economic growth

• The wealthy invested heavily in stocks, leaving little money for consumer spending

• The middle class had too much disposable income, inflating consumer prices

Which statement best explains why stock market growth in the late 1920s did not reflect true economic health?

• Most corporations were reducing production and closing factories

• Investors were cautious and avoided overspeculation

• Stocks were bought on margin, inflating prices artificially

• Stock ownership was rare among middle-class Americans

Evaluate the global impact of the Hawley-Smoot Tariff of 1930.

• It increased farm exports and helped rural economies recover

• It led to an economic boom in Europe but hurt the U.S.

• It worsened the global depression by reducing international trade

• It stabilized international markets and boosted production

Which factor most directly caused falling farm prices during the 1920s?

• Lack of access to modern irrigation systems

• Government control of railroads

• High tariffs on imported crops

• Overproduction of crops following World War I

What practice triggered a wave of bank failures after the stock market crash?

• Creation of a national banking holiday

• Mass withdrawals by depositors seeking their savings

• Government seizure of private banks

• Rising consumer prices made loans worthless

Which factor contributed most to the severity of the 1929 stock market crash?

• Overspending on social programs

• Strict federal regulations on banks

• Excessive margin buying and speculation

• Lack of government debt spending

Which event was the immediate cause of the sharp rise in unemployment from 1929 to 1932?

• Election of Franklin D. Roosevelt

• End of Prohibition

• Crash of the stock market

• Start of World War II

How did the 1930 tariff legislation affect the economic crisis?

• It improved global economic conditions

• It deepened the depression by slowing international trade

• It helped the U.S. recover but hurt Europe

• It created new jobs that ended the depression

Which outcome was a direct result of the Dust Bowl?

• Lower crop prices caused by overproduction

• Mass migration of farmers out of the Midwest

• A surge in southern sharecropping

• Flooding of fertile farmland