MCQs on the Economic Depression of the world from 1929 to 1934 – Modern World History
Q1. Which event is considered the start of the Great Depression?
a) The Wall Street Crash of 1929
b) The Stock Market Crash of 1928
c) The collapse of the gold standard
d) The failure of the Bank of the United States
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Correct Answer: a) The Wall Street Crash of 1929
Explanation: The Wall Street Crash of 1929, also known as the Stock Market Crash of 1929, marked the beginning of the Great Depression, a severe worldwide economic depression that lasted until the late 1930s.
Q2. Which country was the most affected by the Great Depression?
a) Germany
b) United States
c) United Kingdom
d) France
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Correct Answer: b) United States
Explanation: The United States was the most affected by the Great Depression, as it was the epicenter of the economic crisis, with millions of people losing their jobs, savings, and homes.
Q3. What was the main cause of the Great Depression?
a) Stock market speculation
b) Agricultural overproduction
c) Bank failures
d) All of the above
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Correct Answer: d) All of the above
Explanation: The main cause of the Great Depression was a combination of factors, including stock market speculation, agricultural overproduction, and bank failures, which led to a collapse in consumer demand and a severe economic downturn.
Q4. Which economic policy was widely adopted during the Great Depression to protect domestic industries?
a) Free trade
b) Protectionism
c) Laissez-faire capitalism
d) Socialism
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Correct Answer: b) Protectionism
Explanation: Protectionism, which involves the imposition of tariffs and other trade barriers to protect domestic industries, was widely adopted during the Great Depression in an attempt to stimulate domestic production and employment.
Q5. Which international agreement was signed in 1930 and is considered to have worsened the Great Depression by reducing international trade?
a) The Smoot-Hawley Tariff Act
b) The Dawes Plan
c) The Kellogg-Briand Pact
d) The Locarno Treaties
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Correct Answer: a) The Smoot-Hawley Tariff Act
Explanation: The Smoot-Hawley Tariff Act, signed in 1930, is considered to have worsened the Great Depression by reducing international trade, as it imposed high tariffs on imported goods, leading to retaliatory measures by other countries.
Q6. Which of the following was a major impact of the Great Depression on the global economy?
a) The decline of international trade
b) The rise of protectionism
c) The collapse of the gold standard
d) All of the above
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Correct Answer: d) All of the above
Explanation: The Great Depression had a major impact on the global economy, leading to the decline of international trade, the rise of protectionism, and the collapse of the gold standard, which had previously provided stability to the international monetary system.
Q7. Which of the following was a major impact of the Great Depression on the United States economy?
a) High unemployment
b) Bank failures
c) Decline in industrial production
d) All of the above
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Correct Answer: d) All of the above
Explanation: The Great Depression had a major impact on the United States economy, leading to high unemployment, bank failures, and a decline in industrial production, as businesses closed and people lost their jobs and savings.
Q8. Which of the following was a major impact of the Great Depression on the European economy?
a) The collapse of the gold standard
b) The rise of protectionism
c) The decline of international trade
d) All of the above
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Correct Answer: d) All of the above
Explanation: The Great Depression had a major impact on the European economy, leading to the collapse of the gold standard, the rise of protectionism, and the decline of international trade, as countries sought to protect their domestic industries and reduce their dependence on foreign markets.
Q9. Which of the following was a major impact of the Great Depression on the political landscape?
a) The rise of totalitarian regimes
b) The decline of democracy
c) The spread of nationalism
d) All of the above
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Correct Answer: d) All of the above
Explanation: The Great Depression had a major impact on the political landscape, leading to the rise of totalitarian regimes, the decline of democracy, and the spread of nationalism, as economic instability and social unrest created fertile ground for radical political movements.
Q10. Which of the following was a major impact of the Great Depression on the social structure?
a) The decline of the middle class
b) The rise of the working class
c) The growth of the welfare state
d) The expansion of the peasant population
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Correct Answer: a) The decline of the middle class
Explanation: The Great Depression had a major impact on the social structure, leading to the decline of the middle class, as people lost their jobs, savings, and homes, and were forced to rely on government assistance and charity to survive.
Q11. Which of the following was a major impact of the Great Depression on the cultural development?
a) The growth of a distinct American identity
b) The decline of religious influence
c) The spread of socialist realism in art and literature
d) The rise of Romanticism
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Correct Answer: c) The spread of socialist realism in art and literature
Explanation: The Great Depression had a major impact on the cultural development, leading to the spread of socialist realism in art and literature, which sought to promote the ideals of the Communist state and the Communist Party.
Q12. What was the main impact of the Great Depression on the education system?
a) The establishment of a national system of public education
b) The introduction of religious instruction in schools
c) The abolition of universities
d) The establishment of a single curriculum for all schools
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Correct Answer: a) The establishment of a national system of public education
Explanation: The main impact of the Great Depression on the education system was the establishment of a national system of public education, which aimed to provide equal educational opportunities for all citizens.
Q13. What was the main impact of the Great Depression on the military?
a) The introduction of conscription
b) The establishment of a professional army
c) The abolition of the officer class
d) The introduction of new military tactics
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Correct Answer: a) The introduction of conscription
Explanation: The main impact of the Great Depression on the military was the introduction of conscription, which required all able-bodied men to serve in the military for a certain period of time.
Q14. What was the main impact of the Great Depression on the colonies of various European countries?
a) The decline of colonial trade
b) The rise of nationalist movements
c) The imposition of economic austerity measures
d) The spread of socialist ideologies
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Correct Answer: a) The decline of colonial trade
Explanation: The main impact of the Great Depression on the colonies of various European countries was the decline of colonial trade, as the economic crisis led to a reduction in demand for goods and services, affecting the economies of both the colonizing countries and their colonies.
Q15. Which policy was adopted by many countries during the Great Depression to stabilize their currencies?
a) Abandoning the gold standard
b) Adopting a fixed exchange rate system
c) Implementing currency controls
d) Introducing a single global currency
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Correct Answer: a) Abandoning the gold standard
Explanation: During the Great Depression, many countries abandoned the gold standard to stabilize their currencies, as the economic crisis led to a loss of confidence in the gold-backed monetary system and countries sought to regain control over their monetary policies.
Q16. Which economic theory gained prominence during the Great Depression as a response to the crisis?
a) Classical economics
b) Neoclassical economics
c) Keynesian economics
d) Monetarism
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Correct Answer: c) Keynesian economics
Explanation: Keynesian economics gained prominence during the Great Depression as a response to the crisis, as it advocated for increased government spending and intervention in the economy to stimulate demand and alleviate the effects of the depression.
Q17. Which U.S. president implemented the New Deal in response to the Great Depression?
a) Herbert Hoover
b) Franklin D. Roosevelt
c) Harry S. Truman
d) Dwight D. Eisenhower
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Correct Answer: b) Franklin D. Roosevelt
Explanation: Franklin D. Roosevelt implemented the New Deal in response to the Great Depression, which was a series of programs, public work projects, financial reforms, and regulations aimed at providing relief, recovery, and reform to the U.S. economy.
Q18. What was the main goal of the New Deal?
a) To restore confidence in the banking system
b) To provide relief to the unemployed and poor
c) To reform the financial system to prevent future depressions
d) All of the above
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Correct Answer: d) All of the above
Explanation: The main goal of the New Deal was to restore confidence in the banking system, provide relief to the unemployed and poor, and reform the financial system to prevent future depressions.
Q19. Which British economist’s ideas heavily influenced the policies of the New Deal?
a) Adam Smith
b) David Ricardo
c) John Maynard Keynes
d) Alfred Marshall
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Correct Answer: c) John Maynard Keynes
Explanation: The ideas of British economist John Maynard Keynes heavily influenced the policies of the New Deal, as his theories advocated for increased government spending and intervention in the economy to stimulate demand and alleviate the effects of the depression.
Q20. Which of the following was a major consequence of the Great Depression on the global political landscape?
a) The rise of fascist regimes in Europe
b) The decline of colonial empires
c) The spread of communism
d) The emergence of the United Nations
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Correct Answer: a) The rise of fascist regimes in Europe
Explanation: A major consequence of the Great Depression on the global political landscape was the rise of fascist regimes in Europe, as economic instability and social unrest created fertile ground for radical political movements.