Quiz On America's Great Depression By Murray Rothbard!

10 Questions | Total Attempts: 536

SettingsSettingsSettings
Please wait...
The Great Depression Quizzes & Trivia

This is a 10-question quiz on the book America's Great Depression by Murray Rothbard. America's Great Depression began in 1929 due to economic depression which gave rise to unemployment, poverty, low income and deflation. Due to the falling down of the banking system, every citizen suffered the consequences. Test your knowledge and learn about the history of America's Great Depression. So, let's try out the quiz. All the best!


Questions and Answers
  • 1. 
    What word does Paul Johnson use to describe the relationship between the Hoover and Roosevelt administrations' responses to the economic crisis of the 1930s? 
    • A. 

      A contradiction.

    • B. 

      A conundrum.

    • C. 

      A continuum.

    • D. 

      A coincidence.

  • 2. 
    What does Johnson say was the orthodox explanation for the worldwide economic contraction of the 1930s?
    • A. 

      The Keynesian theory that government did too little to rescue the market system from the consequences of its own folly.

    • B. 

      The Marxian theory that capitalism had collapsed as a result of its inherent contradictions.

    • C. 

      The Monetarist theory that the Federal Reserve failed to sufficiently inflate the money supply.

    • D. 

      The Austrian theory that the Federal Reserve over-inflated the money supply.

  • 3. 
    In 1982, what did Rothbard believe would be the outcome of Reaganomics?
    • A. 

      He believed it would create long-term prosperity for the USA.

    • B. 

      He saw short-term success but long-term failure.

    • C. 

      He didn't have an opinion.

    • D. 

      He thought it was doomed to be a fiasco.

  • 4. 
    What aspect of the economic situation in the early 1970s created a problem for Keynesian theorists?
    • A. 

      Simultaneous inflation and depression.

    • B. 

      Stock prices falling as housing costs increased.

    • C. 

      A reduction in monetary velocity.

    • D. 

      Rising interest rates.

  • 5. 
    What was the stark realization that conventional economists were forced to face during the economic crisis of the 1970s?
    • A. 

      The fact that lowering interest rates creates inflation.

    • B. 

      The fact that inflation doesn't offset unemployment.

    • C. 

      The fact that business cycles exist.

    • D. 

      The fact that lower taxes generate more government revenue.

  • 6. 
    What is the essence of recession according to the Austrian theory of economics?
    • A. 

      A decline in the rate of GDP growth.

    • B. 

      A readjustment of the economy to eliminate the distortions created during the expansion.

    • C. 

      The inability of consumers to maintain their previous level of spending on consumer goods.

    • D. 

      A reduction in the size of the national economy.

  • 7. 
    What advantage of recessions has the government prevention of monetary deflation eliminated?
    • A. 

      Full employment.

    • B. 

      Low interest rates.

    • C. 

      Reduced cost of living.

    • D. 

      Inexpensive imports.

  • 8. 
    How long did the Great Depression that began in 1929 last?
    • A. 

      5 years.

    • B. 

      8 years.

    • C. 

      11 years.

    • D. 

      15 years.

  • 9. 
    Which of the following ideas do all the major non-Austrian economic schools share?
    • A. 

      Business crises stem from market processes.

    • B. 

      Economic contractions are caused by excess liquidity.

    • C. 

      Inflation is the result of expropriated labor.

    • D. 

      The rate of growth of the money supply dictates the growth of the economy.

  • 10. 
    What is the day of the 1929 stock market crash sometimes called?
    • A. 

      Manic Monday

    • B. 

      Terrible Tuesday

    • C. 

      Black Friday

    • D. 

      Black Thursday