Practice Quiz

Praxis II: Citizenship Education Content Knowledge Exam Prep

Category - Citizenship Education

Start a Study Session Sign up for Question of the Day
Which of the following was the major cause of the 1929 Depression?
  1. There were not enough dollars in circulation.
  2. There was a general shortage of goods, caused by overproduction and overconsumption.
  3. The cost of goods majorly decreased, caused by overproduction and underconsumption.
  4. The number of exports increased too quickly.
Explanation
Answer - C - The major cause of the 1929 Depression was that the cost of goods majorly decreased, caused by overproduction and underconsumption.

Key Takeaway: The Depression of 1929 was mostly due to too many goods being available (overproduction) without enough people who could buy them (underconsumption). This led to a nation-wide decrease in prices. Other reasons for the depression included: speculation, which led to massive overpricing of stocks; margin buying; poor bank practices; unemployment; an equally bad depression in Europe; and high tariffs abroad.
Previous Next
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz