The West Between The Wars, 1919-1939 17 -1

1.

General rise in prices

A.

Collective bargaining
B.

Depression
C.

Active government
D.

Deficit spending
E.

Inflation

Correct Answer
E. Inflation

Explanation
Inflation refers to a general rise in prices over a period of time. It occurs when there is an increase in the overall level of prices for goods and services in an economy. This can be caused by various factors such as increased demand, higher production costs, or changes in government policies. Inflation can have significant impacts on individuals and businesses, affecting purchasing power, savings, and investment decisions. Therefore, the given answer "inflation" is the most appropriate explanation for the general rise in prices.

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2.

Period of low economic activity and high unemployers

A.

Collective bargaining
B.

Depression
C.

Active government
D.

Deficit spending
E.

Inflation

Correct Answer
B. Depression

Explanation
The correct answer is "depression". A depression refers to a period of low economic activity and high unemployment. During a depression, there is a significant decrease in economic output, businesses struggle, and many individuals are unable to find work. This is often accompanied by a decline in consumer spending, investment, and overall economic growth. The term "depression" is commonly used to describe a severe and prolonged economic downturn that affects a large part of the economy.

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3.

Right of unions to negotiate with employers

A.

Collective bargaining
B.

Depression
C.

Active government
D.

Deficit spending
E.

Inflation

Correct Answer
A. Collective bargaining

Explanation
Collective bargaining refers to the right of unions to negotiate with employers on behalf of their members. It allows workers to come together and bargain for better wages, working conditions, and benefits. This process is essential for maintaining a balance of power between employers and employees, ensuring that workers have a say in their working conditions and can advocate for their rights. It is a fundamental aspect of labor relations and plays a crucial role in protecting workers' interests and promoting fair and equitable treatment in the workplace.

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4.

A way for governments to help end a depression

A.

Collective bargaining
B.

Depression
C.

Active government
D.

Deficit spending
E.

Inflation

Correct Answer
D. Deficit spending

Explanation
Deficit spending refers to a government's practice of spending more money than it receives in revenue, resulting in a budget deficit. This can be used as a means for governments to help end a depression by stimulating economic growth. By increasing government spending, more money is injected into the economy, leading to increased demand for goods and services. This, in turn, encourages businesses to produce more, leading to job creation and economic expansion. Deficit spending can help boost economic activity and lift an economy out of a depression.

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5.

Nature of Roosevelt's New Deal

A.

Collective bargaining
B.

Depression
C.

Active government
D.

Deficit spending
E.

Inflation

Correct Answer
C. Active government

Explanation
The nature of Roosevelt's New Deal was characterized by an active government. During the Great Depression, Roosevelt implemented various policies and programs to stimulate the economy and provide relief to the American people. This involved the government taking an active role in regulating industries, providing jobs, and implementing social welfare programs. The New Deal marked a significant shift towards increased government intervention in the economy and society, aiming to address the severe economic crisis and restore stability.

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6.

The League of Nations was less than effective for all of the following reasons EXCEPT

A.

The United States did not join.
B.

The United States did not ratify the Treaty of Versailles.
C.

League members could not agree to use force againt aggression.
D.

President Wilson did not suppoprt the idea.

Correct Answer
D. President Wilson did not suppoprt the idea.

Explanation
The League of Nations was less than effective for all of the given reasons except that President Wilson did not support the idea. The League's effectiveness was hindered by the fact that the United States did not join and did not ratify the Treaty of Versailles. Additionally, League members could not agree to use force against aggression, further limiting its effectiveness. However, President Wilson's lack of support is not a reason for the League's ineffectiveness.

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7.

The Great Depression was caused primarily by

A.

Economic downturn and the U.S. stock market crash.
B.

Failure of nations to reduce their military forces.
C.

New interest in Marxist theory.
D.

Strenghening of European banks.

Correct Answer
A. Economic downturn and the U.S. stock market crash.

Explanation
The Great Depression was primarily caused by a combination of economic downturn and the U.S. stock market crash. The economic downturn refers to a decline in economic activity, characterized by a decrease in production, employment, and trade. This downturn was exacerbated by the stock market crash of 1929, which led to a significant loss of wealth and investor confidence. These factors triggered a chain reaction of bank failures, reduced consumer spending, and a decline in international trade, ultimately resulting in the severe economic depression of the 1930s. The other options, such as failure to reduce military forces, new interest in Marxist theory, or strengthening of European banks, do not accurately reflect the primary causes of the Great Depression.

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8.

The Weimar Republic was hurt by of the follpwing EXCEPT

A.

A hostile middle class.
B.

Serious social problems.
C.

Too much spending on the German military.
D.

The Great Depression.

Correct Answer
C. Too much spending on the German military.

Explanation
The Weimar Republic faced several challenges, including a hostile middle class, serious social problems, and the impact of the Great Depression. However, the one factor that did not directly hurt the Weimar Republic was too much spending on the German military. While excessive military spending can strain a country's economy, it was not specifically mentioned as a factor that harmed the Weimar Republic in this question.

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9.

The economist John Maynard Keynes argued that

A.

Depressions should be allowed to resolve themselves.
B.

Depressions were incurable.
C.

Unemployment came from a decline in demand for goods and services.
D.

Free economiies never worked.

Correct Answer
C. Unemployment came from a decline in demand for goods and services.

Explanation
John Maynard Keynes, an economist, believed that unemployment was a result of a decline in demand for goods and services. He argued that during economic depressions, the government should intervene by increasing spending and stimulating demand to boost employment levels. Keynes' theory, known as Keynesian economics, suggests that by increasing demand, businesses will be incentivized to hire more workers, reducing unemployment. This view contrasts with the belief that depressions should be allowed to resolve themselves or that they are incurable. It also challenges the notion that free economies always work efficiently without government intervention.

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10.

The French New Deal program started by France's Popular Front

A.

Solved the depression in France.
B.

Improved wages and hours for workers.
C.

Weakened worker's rights.
D.

Increased confidence in the French political system.

Correct Answer
B. Improved wages and hours for workers.

Explanation
The French New Deal program implemented by France's Popular Front aimed to address the economic depression in France. One of the key objectives of this program was to improve the wages and working hours for workers. By doing so, the government aimed to alleviate the economic hardships faced by the working class and stimulate the economy. This initiative was intended to provide better conditions for workers and potentially boost their purchasing power, thus contributing to the recovery of the French economy.

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