Great Depression, Part I

5 Written Questions

1. very severe and prolonged contraction in economic activity when consumer spending, production levels, wages, prices and profits fall sharply
2. period of declining economic activity when the gross domestic product falls for six months in a row
3. share of ownership in a company
4. having concern for or helping to improve the welfare and happiness of people
5. group of World War I veterans and their families who marched on Washington, D.C. in 1932 to demand the immediate payment of money promised to them for military service

5 Matching Questions

1. unemployment rate
2. speculation
3. poverty
4. Great Depression
5. Dow Jones Industrial Average

1. a percentage of the labor force that doesn't have a job but is actively looking for work
2. b period lasting from 1929 to 1940 in which the U.S. economy was in severe decline and millions of Americans were unemployed
3. c measure based on the prices of stocks of 30 large companies; widely used as a barometer of the stock market's health
4. d lack of adequate income to maintain a minimum standard of living
5. e involvement in risky business transactions in an effort to make a quick or large profit

5 Multiple Choice Questions

1. maintenance of a price at a certain level through government intervention
   1. poverty
   2. recession
   3. price support
   4. credit
2. discharge a mortgage with a new mortgage obtained at a lower interest rate
   1. credit
   2. recession
   3. stock
   4. refinance
3. neighborhood in which people live in makeshift shacks
   1. hoboes
   2. stock
   3. shantytown
   4. humanitarian
4. period of rising stock prices
   1. broker
   2. Bonus Army
   3. bull market
   4. bear market
5. purchasing of stocks by paying only a small percentage of the price and borrowing the rest
   1. bull market
   2. buying on margin
   3. business cycle
   4. Bonus Army

5 True/False Questions

1. business cycle → pattern of increases and decreases in economic activity

   True        False

2. broker → agent who buys and sells stock for people for a commission

   True        False

3. hoboes → agent who buys and sells stock for people for a commission

   True        False

4. soup kitchen → having concern for or helping to improve the welfare and happiness of people

   True        False

5. direct relief → arrangement in which a buyer pays later for a purchase, often on an installment plan with interest charges

   True        False