MAC TEST

Module 9:  The Great Depression Review Questions

Identify:  

-Deflation (a decrease in the general price level of goods and services)

-The Dow Jones Industrial Average (a measure based on the stock prices of 30 representative large firms “AT THE TIME” trading on the New York Stock Exchange)

-The Great Depression (the period from 1929 through the 1930’s in which the economy plummeted and unemployment skyrocketed)

-direct relief (cash payments of food the government provides to the poor)

-Herbert Hoover (the President during the first part of The Great Depression who believed that government could play a limited role in helping to solve problems)

-Bonus Army (10-20,000 WWI veterans and their families who arrived in Washington, DC in 1932 to support a bill that would pay a bonus to them who had not been compensated adequately for their wartime service)

1)     Why was much of the prosperity of the 1920's more superficial than real? (1)

-many people were living beyond their means

2)     What was the one problem with speculation? (1)

-the rising stock prices did not reflect the actual worth of companies

3)     Why was Black Tuesday such a significant day in American History? (1)

-it was the day when the stock market crashed

4)     Why did the Great Depression in America compound the problems that were already going on in Europe? (1)

-Americans were unable to buy European goods during this time

5)     How did Hoover try to help people keep their homes and farms during his administration? (1)

-he signed into law the Federal Home Loan Bank Act

Crash Course Episode #33 “The Great Depression”

A.      Why was spending and consumption of the 1920’s ultimately unsustainable?

-People were borrowing money to do all their buying

-sooner or later you can’t borrow anymore because no one will lend to you when you already owe a lot

B.      What two kinds of investments were people “betting” on by 1929?

-the stock market and real estate

C.      What does it mean to buy stock “on margin?”

-you borrow money you need to purchase the stock

D.     Why is deflation (falling prices) actually worse than inflation (rising prices)?

-it makes businesses cut expenses

-which means laying off employees

-ex-workers have no money to buy anything so demand for things falls

E.      What was Hoover’s explanation for why the Depression happened?

-World War I

F.      How bad was the unemployment situation by early 1932?

-More than 10 million unemployed

-about 20% of the work force (even worse in urban areas/among minority populations

Module 10:  The New Deal Review Questions

IDENTIFY:

-Franklin Delano Roosevelt (known as FDR created The New Deal and had a “can-do” attitude in which he expanded government’s role in the nation’s economy and in citizen’s lives)

-New Deal (policies focused on three general goals:  relief for the needy, economic recovery, and financial reform)

-Eleanor Roosevelt (the first lady and niece of Teddy Roosevelt who was a social reformer that combined her deep humanitarian impulse with great political skills)

-Social Security Act (which had three components:  old-age insurance for retirees 65 or older and their spouses, unemployment compensation, and aid to families with dependent children and people with disabilities)

1)     What was the purpose of the Glass-Steagall Act of 1933 in establishing the Federal Deposit Insurance Corporation (FDIC)? (1)

-to reassure people that their money was safe in the bank

2)     Why did conservatives attack New Deal laws? (1)

-they felt the laws gave the federal government too much power

3)     What was Eleanor Roosevelt's role in the New Deal? ((1)

-she advocated for people who were typically underrepresented

4)     What was the purpose of the Works Progress Administration? (1)

-to quickly created as many jobs for as many people as possible

5)     Why was Frances Perkins significant? (1)

-she was the first female cabinet member

6)     How did Mary McLeod Bethune use her position to benefit the African American community? (1)

-she organized a group of African Americans to advise the president on racial issues

7)     What was the effect of the New Deal's protection of worker rights? (1)

-union membership increased greatly

8)     What role did popular movies serve during the 1930's? (1)

-they gave people a break from the hardships of the Great Depression

9)     What was the greatest impact of the New Deal? (1)

-the power of the federal government expanded significantly