America's Great Depression Chapter 9

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    The name of the controversial import tax passed by Congress in 1930 was the _________________ Tariff.

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This is a 10-question quiz on Chapter 9: 1930 of America's Great Depression by Murray Rothbard.

Americas Great Depression Chapter 9 - Quiz

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  • 2. 

    What principle was widely accepted by economists as a means of effectively reducing unemployment in 1930?

    • Tax cuts.

    • Public works.

    • Interest-free loans.

    • Welfare payments.

    Correct Answer
    A. Public works.
    Explanation
    During the 1930s, economists widely accepted the principle of public works as an effective means of reducing unemployment. Public works refer to government-funded projects such as infrastructure development, construction of roads, bridges, and public buildings. By investing in these projects, governments create job opportunities for the unemployed, stimulating the economy and reducing unemployment rates. This approach was particularly relevant during the Great Depression when unemployment was a major concern, and public works projects were seen as a way to provide immediate relief and long-term economic growth.

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  • 3. 

    How did agricultural tariffs hurt the farmers they were intended to help?

    • Imported seeds became more expensive.

    • Competing foreign farmers increased their efficiency.

    • Retaliatory tariffs reduced their ability to export.

    • Agricultural consumers bought fewer farm products.

    Correct Answer
    A. Retaliatory tariffs reduced their ability to export.
    Explanation
    Retaliatory tariffs reduced the ability of farmers to export their agricultural products. When a country imposes tariffs on imported goods, other countries may retaliate by imposing tariffs on the exporting country's products. In this case, the retaliatory tariffs made it more difficult for farmers to sell their products internationally, limiting their ability to access foreign markets and reducing their potential profits. This ultimately harmed the farmers, as they were unable to benefit from the global demand for their agricultural products.

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  • 4. 

    What was President Hoover's pet theory of the stock market crash?

    • It was caused by excessive corporate fraud.

    • It was caused by the Federal Reserve raising interest rates.

    • It was caused by inflationary credit expansion.

    • It was caused by credit being absorbed by speculation.

    Correct Answer
    A. It was caused by credit being absorbed by speculation.
    Explanation
    President Hoover's pet theory of the stock market crash was that it was caused by credit being absorbed by speculation. This implies that Hoover believed that the crash occurred because people were excessively borrowing money to invest in the stock market, leading to a speculative bubble that eventually burst. This theory suggests that Hoover attributed the crash to the actions of investors rather than factors like corporate fraud, the Federal Reserve raising interest rates, or inflationary credit expansion.

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  • 5. 

    Who were the main proponents of the tariff act of 1930?

    • The Keynesian economists.

    • The Progressive Bloc, the farmers, and the AFL.

    • The Better Business Bureau and the Consumers Union.

    • The Conservative Club, the bankers, and the NFL.

    Correct Answer
    A. The Progressive Bloc, the farmers, and the AFL.
    Explanation
    The main proponents of the tariff act of 1930 were the Progressive Bloc, the farmers, and the AFL. These groups supported the tariff act as a means to protect domestic industries and agriculture from foreign competition. The Progressive Bloc, a group of progressive politicians, advocated for policies that aimed to regulate big business and promote social welfare. The farmers, who were struggling due to the economic downturn, saw the tariff act as a way to protect their interests. The AFL, or the American Federation of Labor, supported the tariff act to protect American workers and their jobs from foreign competition.

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  • 6. 

    What two factors kept inflation in check in 1930?

    • Interest rate increases and gold sales

    • Decreased federal spending and exports

    • Stock market collapse and bank failures.

    • Housing price declines and reduced lending.

    Correct Answer
    A. Stock market collapse and bank failures.
    Explanation
    During the Great Depression in 1930, the stock market collapse and bank failures played a significant role in keeping inflation in check. The stock market crash led to a decrease in consumer spending and business investments, resulting in a decline in overall demand and prices. Additionally, bank failures caused a contraction in the money supply, leading to reduced lending and further dampening inflationary pressures. These two factors combined created a deflationary environment, preventing significant inflation from occurring.

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  • 7. 

    Who wished to pursue a laissez-faire policy in December 1929?

    • President Hoover

    • The Senate

    • The House of Representatives

    • The Federal Reserve

    Correct Answer
    A. The Federal Reserve
    Explanation
    In December 1929, the Federal Reserve wished to pursue a laissez-faire policy. Laissez-faire refers to a hands-off approach by the government in economic affairs, allowing the free market to operate without interference. This suggests that the Federal Reserve wanted to avoid intervening in the economy and instead let market forces determine the course of action.

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  • 8. 

    What was the approximate unemployment level in 1930?

    • 4 percent

    • 9 percent

    • 15 percent

    • 24 percent

    Correct Answer
    A. 9 percent
    Explanation
    In 1930, the approximate unemployment level was 9 percent. This means that around 9 percent of the workforce was unemployed during that time.

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  • 9. 

    How was immigration reduced by 90 percent in 1930?

    • The State Department issued a press release.

    • The President signed a presidential executive order.

    • The Congress passed a near-complete ban on immigration.

    • The President met with the Mexican foreign minister.

    Correct Answer
    A. The State Department issued a press release.
    Explanation
    The State Department issued a press release. This answer does not provide a direct explanation for how immigration was reduced by 90 percent in 1930. The given options do not provide enough information to determine the exact measures taken to reduce immigration.

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  • 10. 

    What happened to the money supply in 1930?

    • It remained constant.

    • It increased slightly.

    • It increased dramatically.

    • It decreased dramatically.

    Correct Answer
    A. It remained constant.
    Explanation
    In 1930, the money supply remained constant. This means that the amount of money in circulation did not significantly change during that year. This could be due to various factors such as stable economic conditions, government policies, or the lack of significant events that would impact the money supply.

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  • Jan 03, 2009
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