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Economic Concepts in the 1920s Quiz

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

Laissez-faire

Explanation

Economic concept advocating minimal government intervention in the market.

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?

Overproduction

Explanation

Condition where production surpasses demand, causing prices to fall.

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

Trickle-down economics

Explanation

Policy advocating tax cuts for the wealthy and corporations, with the belief that benefits will 'trickle down' to everyone.

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

Bull market

Explanation

Period of rising stock prices driven by investor optimism and speculation.

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?

Trickle-down economics

Explanation

Theory advocating tax cuts for the wealthy and corporations to stimulate economic growth and job creation.

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

Roaring Twenties

Explanation

Term describing the prosperous period of economic and cultural growth in the U.S. during the 1920s.

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

Calvin Coolidge

Explanation

U.S. President known for his pro-business economic policies during the 1920s.

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

Explanation

Economist known for advocating government intervention to stimulate demand during economic downturns.

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

Margin buying

Explanation

Buying stocks with borrowed funds, often leading to heightened market speculation.

#10

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

Depression

Explanation

Economic downturn characterized by reduced production, employment, and economic activity.

#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

Explanation

Economic condition characterized by rising prices and decreased purchasing power of money.

#12

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

Easy credit policies

Explanation

Policy of readily available credit that fueled speculation and contributed to the stock market crash of 1929.

#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)

Explanation

Measure of a country's economic output within a defined period.

#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

Explanation

International agreement promoting peace through economic cooperation and trade barrier reduction.

#15

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

Fiscal policy

Explanation

Government's management of spending and taxation, often resulting in budget deficits.

Economic Concepts in the 1920s Quiz

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

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?

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

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

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?

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

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

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

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

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

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?

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

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

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

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

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