16-1 QUESTIONS AND ANSWERS
01. Who stated that poverty would be banished from the nation?
Hoover
02. Hoover led a food relief program in Europe during which war?
World War I
03. Which position did Hoover hold in the Harding and Coolidge administrations?
Secretary of Commerce
04. Which indicator was considered the “economic weathervane” of the economy?
Stock Market
05. Which term refers to what money can actually buy?
Real Wages
06. Between 1914 and 1928, how much had real wages increased?
40%
07. By 1928, unemployment was slightly below what percent?
4
08. The Man Nobody Knows focused on whose life?
Jesus
09. Who authored The Man Nobody Knows?
Bruce Barton
10. Who authored “Everybody Ought to be Rich”?
John J. Raskob
11. According to Raskob, how much did each individual have to set aside if they wanted to create an income of $400 per month?
$15 a week (169 weekly/4,514 a month)
12. Due to the improvement in the standard of living, which group became weaker?
Organized Labor
13. Which term refers to the industrial policy of meeting workers’ needs with increased pay and benefits for the purpose of preventing labor union organization?
Welfare Capitalism
14. Name three benefits provided by management under welfare capitalism.
Paid Vacations/Health Plans/English Classes for Recent Immigrants
15. During the 1920s, who mainly became wealthy through the stock market?
Rich
16. In 1929, 200 large companies controlled what percent of American industry?
49%
17. In 1929, 0.1 percent of the nation controlled what percent of the nation’s savings?
34%
18. 71% of the nation earned less than how much per year?
$2,500
19. What percent of families had no savings?
80%
20. What was the main item that lowered the cost of many consumer items during the Twenties?
Assembly Line
21. Which four things made people purchase large amounts of items in the Twenties?
Credit/Assembly Line/WWI/Advertising
22. Which term refers to the method of paying for an expensive item over many months in small payments that include interest?
Installment Buying
23. Which term refers to undertaking risk on stocks or real estate for the chance of profit?
Speculation
24. Which term refers to buying stock at a percentage of the full price and borrowing the rest?
Buying on Margin
25. Investors could purchase stock with as little of what percent of the value when they bought on margin?
10
26. When buying on margin, from whom did the investor receive a “loan”?
Broker
27. What were the two catches when buying on margin?
High Interest/Demand payment at any time
28. When did the automobile industry slump?
1925
29. Why did the automobile, and several other industries, slump in the Twenties?
Overproduction
30. Housing construction fell by what percent between 1928 and 1929?
25%
31. Many economists state that the depression started before 1929 with which section of America?
Farmers
32. Which five items were signs that the Depression was coming in the late Twenties?
Uneven Wealth/Rising Debt/Speculation in the Stock Market/Overproduction/Hard Times for Many Workers
Hoover
02. Hoover led a food relief program in Europe during which war?
World War I
03. Which position did Hoover hold in the Harding and Coolidge administrations?
Secretary of Commerce
04. Which indicator was considered the “economic weathervane” of the economy?
Stock Market
05. Which term refers to what money can actually buy?
Real Wages
06. Between 1914 and 1928, how much had real wages increased?
40%
07. By 1928, unemployment was slightly below what percent?
4
08. The Man Nobody Knows focused on whose life?
Jesus
09. Who authored The Man Nobody Knows?
Bruce Barton
10. Who authored “Everybody Ought to be Rich”?
John J. Raskob
11. According to Raskob, how much did each individual have to set aside if they wanted to create an income of $400 per month?
$15 a week (169 weekly/4,514 a month)
12. Due to the improvement in the standard of living, which group became weaker?
Organized Labor
13. Which term refers to the industrial policy of meeting workers’ needs with increased pay and benefits for the purpose of preventing labor union organization?
Welfare Capitalism
14. Name three benefits provided by management under welfare capitalism.
Paid Vacations/Health Plans/English Classes for Recent Immigrants
15. During the 1920s, who mainly became wealthy through the stock market?
Rich
16. In 1929, 200 large companies controlled what percent of American industry?
49%
17. In 1929, 0.1 percent of the nation controlled what percent of the nation’s savings?
34%
18. 71% of the nation earned less than how much per year?
$2,500
19. What percent of families had no savings?
80%
20. What was the main item that lowered the cost of many consumer items during the Twenties?
Assembly Line
21. Which four things made people purchase large amounts of items in the Twenties?
Credit/Assembly Line/WWI/Advertising
22. Which term refers to the method of paying for an expensive item over many months in small payments that include interest?
Installment Buying
23. Which term refers to undertaking risk on stocks or real estate for the chance of profit?
Speculation
24. Which term refers to buying stock at a percentage of the full price and borrowing the rest?
Buying on Margin
25. Investors could purchase stock with as little of what percent of the value when they bought on margin?
10
26. When buying on margin, from whom did the investor receive a “loan”?
Broker
27. What were the two catches when buying on margin?
High Interest/Demand payment at any time
28. When did the automobile industry slump?
1925
29. Why did the automobile, and several other industries, slump in the Twenties?
Overproduction
30. Housing construction fell by what percent between 1928 and 1929?
25%
31. Many economists state that the depression started before 1929 with which section of America?
Farmers
32. Which five items were signs that the Depression was coming in the late Twenties?
Uneven Wealth/Rising Debt/Speculation in the Stock Market/Overproduction/Hard Times for Many Workers