Cuestionario: Great Depression and New Deal Strategies — 8 preguntas

1. Which city became the global financial center as a result of the stock market boom before the 1929 crash?

A. New York

B. Tokyo

C. Paris

D. London

Answer: (A)

Explicación

The source explicitly states that New York became the global financial center due to the stock market boom, distinguishing it from other major financial cities like London, Paris, or Tokyo. Review: Economic growth and stock market boom before 1929 crash. Course evidence: "- New York became the global financial center due to the stock market boom."

2. Which of the following was a direct economic effect following the 1929 Black Thursday financial crash?

A. A rapid decrease in unemployment rates

B. One-fifth of banks went bankrupt

C. Stock market stability was quickly restored

D. Raw materials and manufactured goods became uniformly cheaper

Answer: (B)

Explicación

The source states that after the 1929 crash, one-fifth of banks went bankrupt. Unemployment increased, raw materials and goods became either worthless or excessively expensive (not uniformly cheaper), and the crash caused massive instability rather than quick restoration. Review: Causes and effects of the 1929 Black Thursday financial crash. Course evidence: "- On October 24, 1929, known as Black Thursday, panic selling triggered a massive stock market crash. - Raw materials and manufactured goods became either worthless or excessively expensive after the crash. - In the U.S., one-quarter of workers became…"

3. How do the global economic contagion and the European unemployment crisis differ in their primary characteristics following the 1929 crash?

A. Global economic contagion was limited to European colonies, while the European unemployment crisis affected global trade and finance.

B. Global economic contagion involved a sharp decline in international trade and financial stability across countries, while the European unemployment crisis was characterized by extremely high joblessness within European nations.

C. Global economic contagion focused on social upheaval and political shifts, while the European unemployment crisis dealt with financial market crashes worldwide.

D. Global economic contagion was mainly about high unemployment rates in Europe, whereas the European unemployment crisis referred to the collapse of international trade.

Answer: (B)

Explicación

The source defines global economic contagion as the widespread spread of economic disturbances across countries with a sharp decline in trade and financial stability, whereas the European unemployment crisis specifically refers to very high unemployment rates within European countries, such as Germany's 44% in 1932. Review: Global and European economic impacts of the 1929 crisis. Course evidence: "- **Global economic contagion** : widespread spread of economic disturbances across countries, characterized by a sharp decline in international trade and financial stability, notably following the 1929 crash. - **European unemployment crisis** : a period…"

4. Who formulated the New Deal, a program underpinned by Keynesian economic principles to combat the Great Depression?

A. John Maynard Keynes

B. Franklin D. Roosevelt

C. Herbert Hoover

D. Theodore Roosevelt

Answer: (B)

Explicación

Franklin D. Roosevelt was elected in 1933 on a platform promising the New Deal, which was based on Keynesian ideas to increase government spending and stimulate the economy. Keynes was the economist whose theories influenced the policy, but Roosevelt was the one who formulated and implemented the New Deal. Review: Franklin D. Roosevelt’s New Deal and Keynesian economic policies. Course evidence: "Franklin D. Roosevelt was elected in 1933 on a platform promising the New Deal to combat economic and social crises. The New Deal was underpinned by Keynesianism, advocating increased domestic spending to stimulate consumption and employment."

5. How would a state government most effectively apply Roosevelt's First Hundred Days policies to reduce unemployment during an economic downturn?

A. Deregulate industries to encourage competition and lower prices

B. Initiate large-scale public works projects to employ millions of workers

C. Privatize public services to reduce government expenditures

D. Increase agricultural production to boost farm incomes

Answer: (B)

Explicación

Roosevelt's First Hundred Days included laws creating large-scale public works projects employing millions, directly addressing unemployment. Increasing production or deregulation were not the primary strategies, and privatizing services contradicts the expansion of public services during that period. Review: Key programs and reforms during Roosevelt’s First Hundred Days. Course evidence: "- During the First Hundred Days, Roosevelt passed laws to create large-scale public works projects employing millions. - The AAA aimed to reduce agricultural surpluses to raise prices and support farmers. - The NIRA coordinated industrial recovery by…"

6. What is a key characteristic of the Banking Acts enacted under the New Deal?

A. They primarily focused on increasing taxes on the wealthiest households

B. They suspended the registration of stock transfers to reduce market transparency

C. They were designed to prevent gold and money shortages and regulate financial transactions

D. They eliminated the role of functionaries monitoring financial markets

Answer: (C)

Explicación

The source states that banking acts were enacted to prevent gold and money shortages and regulate financial transactions, making this their key characteristic. The other options describe different measures or incorrect facts not attributed to the Banking Acts. Review: Financial regulations and taxation measures under the New Deal. Course evidence: "Banking acts were enacted to prevent gold and money shortages and regulate financial transactions."

7. What does the term 'Emergence of new Middle Class' refer to in the context of the New Deal era?

A. The growth of wealthy industrialists opposing FDR's policies

B. The increase in agricultural workers displaced by the Dust Bowl

C. The expansion of government agencies providing unemployment benefits

D. The rise of a social group that gained economic stability and social mobility, fostering belief in the 'American Dream'

Answer: (D)

Explicación

The 'Emergence of new Middle Class' is defined as the rise of a social group gaining economic stability and social mobility during the New Deal era, supporting belief in the 'American Dream.' Other options describe different phenomena not matching this definition. Review: Economic outcomes and social changes from the New Deal era. Course evidence: "Emergence of new Middle Class : the rise of a social group that gained economic stability and social mobility during this period, fostering belief in the 'American Dream'—the idea that everyone has the opportunity and freedom to attain a better life."

8. What was the role of the Dust Bowl during the Great Depression in the United States?

A. It led to increased industrial production in urban areas

B. It contributed to the rise of the middle class

C. It caused severe agricultural damage that forced many families to migrate and become homeless

D. It decreased discrimination against minority communities

Answer: (C)

Explicación

The Dust Bowl caused severe agricultural damage, forcing many families to migrate and become homeless, directly contributing to the social hardships during the Great Depression. The other options are not supported by the source excerpt. Review: Daily life hardships and social consequences during the Great Depression. Course evidence: "- The Dust Bowl caused severe agricultural damage, forcing many families to migrate and become homeless."