1. What is the explanation that has stood the test of time and analysis as the major cause of the Great Depression?
a. The collapse of the U.S. banking system and contraction of the money supply was the major cause of the Great Depression.
b. The stock market crash of 1929 was the major cause of the Great Depression.
c. The Smoot-Hawley tariff reduced world trade and was the major cause of the Great Depression.
d. Financial speculation was the major cause of the Great Depression.
e. The skewed distribution of income and wealth was the major cause of the Great Depression.

2. What were the results of the 1929 stock market crash?
a. A considerable amount of wealth was destroyed.
b. People began to have doubts about the health of the economy.
c. Consumers and firms cut back on their spending.
d. all of the above
e. none of the above

3. Was the stock market crash of 1929 big enough to cause the Great Depression?
a. yes
b. no

4. How did the stock market crash, the closing of the Ford Model T plant and the collapse of the farming industry contribute to the economic collapse known as the Great Depression?
a. These increased unemployment and output.
b. These increased unemployment and prices.
c. These destroyed jobs, wealth and people's confidence in the economy.
d. a and b only
e. a and c only

5. Some suggest that the Smoot-Hawley tariff and protectionist trade policies were the cause of the Great Depression. Which of the following statements is true?
a. A tariff is a tax on an imported good.
b. Tariffs lead to a decrease in international trade.
c. Tariffs lower the price of imported goods relative to the price of domestic goods.
d. a and b only
e. a and c only

6. The money supply (stock) is the amount:
a. of gold in Fort Knox.
b. the federal government has to spend each year.
c. of currency printed each year by the Bureau of Engraving and Printing.
d. of currency, coins, and checking account deposits available in an economy.
e. a and d only