Economic Concepts in the 1920s Quiz

Explore macroeconomics of the 1920s with this quiz. Test your understanding of key terms, policies, and influential figures.

#1

Which economic concept is associated with the idea that the government should not interfere in the free market?

Keynesian economics
Supply-side economics
Laissez-faire
Socialism
#2

What is the term for a situation where the production of goods and services exceeds the demand in the market, leading to a decrease in prices?

Inflation
Deflation
Overproduction
Hyperinflation
#3

What economic policy, often associated with the 1920s, emphasizes cutting taxes to stimulate economic growth and investment?

Monetary policy
Keynesian economics
Trickle-down economics
Protectionism
#4

During the 1920s, what economic concept was characterized by a rapid increase in stock prices fueled by excessive speculation?

Bull market
Bear market
Boom and bust cycle
Market equilibrium
#5

Which economic theory, associated with the 1920s, suggests that reducing taxes on the wealthy and businesses will benefit the overall economy by fostering investment and job creation?

Marxism
Classical economics
Trickle-down economics
Communism
#6

During the 1920s, what term describes the economic and cultural boom in the United States?

Great Depression
Roaring Twenties
Industrial Revolution
Gilded Age
#7

Who was the President of the United States during most of the 1920s, often associated with economic policies promoting business interests?

Woodrow Wilson
Franklin D. Roosevelt
Calvin Coolidge
Herbert Hoover
#8

Which famous economist is known for his theory that prolonged periods of economic downturns are caused by a lack of aggregate demand?

John Maynard Keynes
Milton Friedman
Adam Smith
Karl Marx
#9

During the 1920s, what term is used to describe the practice of buying stocks with borrowed money, hoping for a quick profit?

Stock split
Margin buying
Blue chip investing
Short selling
#10

During the 1920s, what term is used to describe a period of declining economic activity marked by falling industrial production and employment?

Boom
Bust
Recession
Depression
#11

What is the term for a situation in which the prices of goods and services are rising, leading to a decrease in the purchasing power of a currency?

Inflation
Deflation
Recession
Stagflation
#12

During the 1920s, which economic policy contributed to the speculation and eventual collapse of the stock market in 1929?

Monetary policy
Fiscal policy
Hawley-Smoot Tariff
Easy credit policies
#13

Which economic concept refers to the total value of all goods and services produced in a country within a specific time period?

Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Fiscal policy
Monetary policy
#14

What agreement, signed in 1928, aimed to prevent another World War by promoting economic cooperation and reducing trade barriers among its member countries?

Kellogg-Briand Pact
Treaty of Versailles
Locarno Treaties
Hague Convention
#15

What is the term for a situation where the government spends more money than it collects in revenue, leading to a budget deficit?

Austerity
Fiscal policy
Monetarism
Surplus spending

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