1920's & 1930's

Question 1

Hands off Economics

Answer 1

The south avoids interfering with the economy as much as possible

Question 2

Overproduction

Answer 2

When the supply of a manufactured good exceeds demand

Question 3

What event sparked the depression

Answer 3

When stock values dropped, investors decided to sell them before they were worth less. This created a large supply, lowering prices even further.

Question 4

Migrant Farm- Workers

Answer 4

Workers that move from location to location in search of temporary work

Question 5

Mortgage

Answer 5

Loan with a house as collateral

Question 6

Dust Bowl

Answer 6

Hght winds create huge storms that blow soil and plants into the east

Question 7

Recession

Answer 7

An economic low point

Question 8

Depression

Answer 8

An extremely serious economic low

Question 9

What 3 trends of the 1920’s helped lead to the depression

Answer 9

1. Very little regulator of business
2. Buying stock became a fad, thus ruining demand
3. Investors were”buying on margin”: borrowing money to buy stocks

Question 10

Black Tuesday

Answer 10

October 29, 1929, the day the stark market crashed

Question 11

Collateral

Answer 11

Security for a loan

Question 12

Foreclose

Answer 12

Taking a home when. mortgage payments cannot. G make

Question 13

Why did Hoover favor Laissez Faire economics

Answer 13

1. The gov interference will make people lazy

2. The gov will become too powerful

Question 14

What were the two things that Hoover thought be depression would resolve through.

Answer 14

1. Voluntary action from businesses charities

2. The natural rise and fall of the economy

Question 15

Hoover flags

Answer 15

Empty turned out pockets

Question 16

Hoover blankets

Answer 16

Newspapers

Question 17

Hoovervilles

Answer 17

Shanty towns inhabited by people living in box shacks.

Question 18

The Reconstruction finance Corporation

Answer 18

Loaned money to state and local government’s to hire workers for public works projects

Question 19

Drought

Answer 19

A period without rain

Question 20

Why did farmers moved to cities in California

Answer 20

They needed to find work after the dust bowl destroyed their crops

Question 21

The New Deal

Answer 21

A series of reforms and organizations put in place by FDR to end the depression

Question 22

Deficit Spending

Answer 22

Spending more than is taken on through taxes

Question 23

Goals of the new deal

Answer 23

1. Relief for unemployed
2. Economic recovery
3. Prevent future depression

Question 24

How was much of the new deal paid for

Answer 24

Through deficit spending