1. What was the primary trigger of the Great Depression?
a) Overproduction of goods
b) The stock market crash of 1929
c) Agricultural underproduction
d) Excessive government spending
Answer: b) The stock market crash of 1929
Explanation: The stock market crash of October 1929 is often seen as the immediate catalyst of the Great Depression. While deeper economic problems contributed, the crash undermined confidence and led to a cascading series of economic failures.
2. Which sector was hit the hardest in the early years of the Great Depression?
a) Agriculture
b) Technology
c) Textiles
d) Banking
Answer: a) Agriculture
Explanation: Farmers had already been struggling in the 1920s due to overproduction and falling prices. The Great Depression exacerbated these challenges, leading to widespread foreclosures and poverty in rural areas.
3. What was the unemployment rate in the United States at the peak of the Great Depression?
a) 15%
b) 20%
c) 25%
d) 30%
Answer: c) 25%
Explanation: By 1933, the unemployment rate in the U.S. had reached approximately 25%, meaning one in four workers was unemployed.
4. Which U.S. government policy worsened the global economic downturn during the Great Depression?
a) The Smoot-Hawley Tariff Act
b) The New Deal
c) The Social Security Act
d) The Federal Reserve Act
Answer: a) The Smoot-Hawley Tariff Act
Explanation: The Smoot-Hawley Tariff Act (1930) imposed high tariffs on imported goods, prompting other countries to retaliate, which reduced international trade and deepened the global economic downturn.
5. Which region experienced the “Dust Bowl” during the Great Depression?
a) Midwest United States
b) Southeast United States
c) Canadian Prairies
d) Western Europe
Answer: a) Midwest United States
Explanation: The Dust Bowl was caused by severe drought and poor agricultural practices in the U.S. Midwest, devastating farms and displacing thousands of families.
6. What was one of the key underlying causes of the Great Depression?
a) Rapid industrialization
b) Unequal distribution of wealth
c) Decline in urbanization
d) Increased government spending
Answer: b) Unequal distribution of wealth
Explanation: A significant gap between the wealthy and the poor meant that a large portion of the population had limited purchasing power, contributing to decreased consumer demand and economic stagnation.
7. What was the name of the international conference that attempted to address the global economic crisis during the Great Depression?
a) Geneva Conference
b) Bretton Woods Conference
c) London Economic Conference
d) Paris Peace Conference
Answer: c) London Economic Conference
Explanation: The London Economic Conference of 1933 sought international cooperation to combat the Depression, but it failed due to lack of agreement among major powers.
8. What was the term used for makeshift shantytowns during the Great Depression?
a) Hoovervilles
b) Roosevelt Camps
c) Poverty Villages
d) New Deal Cities
Answer: a) Hoovervilles
Explanation: These were named after President Herbert Hoover, who was blamed by many for the economic crisis.
9. Which international financial institution was significantly affected by the Great Depression?
a) Bank of England
b) Federal Reserve
c) Kreditanstalt in Austria
d) World Bank
Answer: c) Kreditanstalt in Austria
Explanation: The collapse of Kreditanstalt in 1931 signaled a global banking crisis, further deepening the Depression.
10. What type of economic policy did many countries adopt during the Depression?
a) Free trade
b) Protectionism
c) Laissez-faire
d) Expansionary fiscal policy
Answer: b) Protectionism
Explanation: Many nations, including the U.S., adopted protectionist policies like tariffs, which reduced international trade and worsened the global crisis.
11. Which U.S. President introduced the New Deal to combat the Great Depression?
a) Herbert Hoover
b) Franklin D. Roosevelt
c) Harry Truman
d) Theodore Roosevelt
Answer: b) Franklin D. Roosevelt
Explanation: FDR introduced the New Deal in 1933, a series of programs and reforms aimed at economic recovery and social welfare.
12. Which industry benefited the most from the New Deal’s public works projects?
a) Agriculture
b) Construction
c) Textiles
d) Finance
Answer: b) Construction
Explanation: Public works projects, such as the building of roads, bridges, and dams, provided jobs and revitalized the construction industry.
13. What was a common term for the migration of displaced farmers during the Dust Bowl?
a) Okies
b) Homesteaders
c) Prairie Pioneers
d) Nomads
Answer: a) Okies
Explanation: Many farmers from Oklahoma and nearby states migrated westward, particularly to California, in search of work and better living conditions.
14. What international effect did the Great Depression have on Germany?
a) Strengthened the Weimar Republic
b) Led to hyperinflation
c) Facilitated the rise of Adolf Hitler
d) Caused a banking boom
Answer: c) Facilitated the rise of Adolf Hitler
Explanation: The economic hardship caused by the Depression created widespread dissatisfaction, enabling Hitler and the Nazi Party to gain support.
15. Which economic school of thought gained prominence as a result of the Great Depression?
a) Classical economics
b) Keynesian economics
c) Monetarism
d) Austrian economics
Answer: b) Keynesian economics
Explanation: John Maynard Keynes argued for increased government intervention and spending during economic downturns, challenging classical economic principles.
16. What was the main reason behind the collapse of international trade during the Depression?
a) Overproduction
b) Tariff wars
c) Labor strikes
d) Industrial automation
Answer: b) Tariff wars
Explanation: Protectionist policies like the Smoot-Hawley Tariff Act led to retaliatory tariffs, reducing global trade.
17. In which year did the global economy begin to show significant recovery from the Great Depression?
a) 1932
b) 1935
c) 1939
d) 1941
Answer: d) 1941
Explanation: The global economy began recovering significantly during World War II as wartime production boosted economic activity.
18. Which of the following was NOT a cause of the Great Depression?
a) Stock market speculation
b) Bank failures
c) Increased taxation
d) Declining consumer spending
Answer: c) Increased taxation
Explanation: While many factors contributed to the Depression, increased taxation was not a significant cause.
