HIST 106- Dr. Ryan- Test 2- TAMUG
Questions and Correct Answers
2025/2026 Set.
The assembly Line - Answer the adoption replaced past factory working process
Machine placement - Answer innovated by Henry ford, wanted line to 'move by itself'.
Unpredicted prosperity - Answer in the 1920s made everyone believe that no matter birth,
anyone could be rich. Resulted in excess investments.
Money without work - Answer idea that lead to over investment in the stock market by the
general population.
The Great Depression - Answer A time of utter economic disaster; started in the United
States in 1929. 25% unemployment rate. Lasted 10 years.
Caroline Bird - Answer Historian who wrote in her book 'The Invisible Scar' that the Great
Depression caused psychological damage to many people, which leads to excessive
consumption in the 1950s.
The American Dream - Answer is the idea/ argument that the U.S is not just a place, but also
an idea that even immigrants could, through hard work, savings and some luck- become
wealthy. Most shared this view without knowing it. Causes people to not question the
inequality of wealth distribution.
Democratic Capitalism - Answer accepted as normal and fair. Upward mobility lifestyle and
culture. Living one step higher on income ladder than parents had. Great Depression showed
the 'ugly' side of system; concept still not questioned.
John Kenneth Galbraith - Answer economist who wrote book for ordinary persons without
extensive knowledge of economics. 'The Great Clash' 1959. Wrote about 6 causes of great
depression. Was eventually forced to change title that eluded to widespread belief that stock
market crash of 1929 was sole cause of depression.
, Great Bull Market - Answer This was how the stock market was described in the 1920s when
its prices were constantly rising. Signs like housing market drop indicated economic stagnation.
The ideology led to the great crash.
bear market - Answer a steady drop or stagnation in the stock market over a period of time
Speculation of business owners - Answer did not lower prices with lack of demand, just laid
off employees, which lowered the amount of consumers. This worsened the existing problem of
recession.
1932 - Answer lowest Dow-Jones average in history. (58)
Bad distribution of income - Answer was one the most impactful causes of great depression.
Bad meant unhealthy.
Andrew Mellon - Answer Secretary of Treasury under President Harding, Coolidge and
Hoover, who instituted a Republican policy of reduced government spending, lower taxes to the
wealthy and higher tariffs. Didn't know much about economics, but still regarded for his advice.
Trickle Down Economics - Answer Hoover's strategy battling the Great Depression saying that
tax cuts at 10% for the wealthy were good for the economy,- cuts led to more investments by
the rich,- which would create new jobs and more capital. Extra money was wasted on useless
investment of stock speculation.
Bad Corporate structure - Answer investments in corporate bonds, preferred stock, common
stock in holding companies in 1920s; followed by holding companies going bankrupt and all
investors being credited heavily.
Bankruptcy Court - Answer would not allow all held up businesses and corporation to
operate, saturated and worsened the great depression economic problems.
Bad Banking System/Bank Runs - Answer Mostly result of lack of FDIC, deposits were not
insured. Banks considered a form of business, and were allowed to die. Small undercapitalized
banks had been encouraged, and this perpetuated the problem.
Dubious state of the foreign balance - Answer Believed by Hoover to be the most influential
Questions and Correct Answers
2025/2026 Set.
The assembly Line - Answer the adoption replaced past factory working process
Machine placement - Answer innovated by Henry ford, wanted line to 'move by itself'.
Unpredicted prosperity - Answer in the 1920s made everyone believe that no matter birth,
anyone could be rich. Resulted in excess investments.
Money without work - Answer idea that lead to over investment in the stock market by the
general population.
The Great Depression - Answer A time of utter economic disaster; started in the United
States in 1929. 25% unemployment rate. Lasted 10 years.
Caroline Bird - Answer Historian who wrote in her book 'The Invisible Scar' that the Great
Depression caused psychological damage to many people, which leads to excessive
consumption in the 1950s.
The American Dream - Answer is the idea/ argument that the U.S is not just a place, but also
an idea that even immigrants could, through hard work, savings and some luck- become
wealthy. Most shared this view without knowing it. Causes people to not question the
inequality of wealth distribution.
Democratic Capitalism - Answer accepted as normal and fair. Upward mobility lifestyle and
culture. Living one step higher on income ladder than parents had. Great Depression showed
the 'ugly' side of system; concept still not questioned.
John Kenneth Galbraith - Answer economist who wrote book for ordinary persons without
extensive knowledge of economics. 'The Great Clash' 1959. Wrote about 6 causes of great
depression. Was eventually forced to change title that eluded to widespread belief that stock
market crash of 1929 was sole cause of depression.
, Great Bull Market - Answer This was how the stock market was described in the 1920s when
its prices were constantly rising. Signs like housing market drop indicated economic stagnation.
The ideology led to the great crash.
bear market - Answer a steady drop or stagnation in the stock market over a period of time
Speculation of business owners - Answer did not lower prices with lack of demand, just laid
off employees, which lowered the amount of consumers. This worsened the existing problem of
recession.
1932 - Answer lowest Dow-Jones average in history. (58)
Bad distribution of income - Answer was one the most impactful causes of great depression.
Bad meant unhealthy.
Andrew Mellon - Answer Secretary of Treasury under President Harding, Coolidge and
Hoover, who instituted a Republican policy of reduced government spending, lower taxes to the
wealthy and higher tariffs. Didn't know much about economics, but still regarded for his advice.
Trickle Down Economics - Answer Hoover's strategy battling the Great Depression saying that
tax cuts at 10% for the wealthy were good for the economy,- cuts led to more investments by
the rich,- which would create new jobs and more capital. Extra money was wasted on useless
investment of stock speculation.
Bad Corporate structure - Answer investments in corporate bonds, preferred stock, common
stock in holding companies in 1920s; followed by holding companies going bankrupt and all
investors being credited heavily.
Bankruptcy Court - Answer would not allow all held up businesses and corporation to
operate, saturated and worsened the great depression economic problems.
Bad Banking System/Bank Runs - Answer Mostly result of lack of FDIC, deposits were not
insured. Banks considered a form of business, and were allowed to die. Small undercapitalized
banks had been encouraged, and this perpetuated the problem.
Dubious state of the foreign balance - Answer Believed by Hoover to be the most influential
