The Great Depression and New Deal Quiz

Grade 8 · Social Studies · Quiz

Test your knowledge of the causes of the Great Depression, its human impact, and FDR's New Deal response.

Questions

1. Which event on October 29, 1929 triggered the Great Depression?

   1. The collapse of a major bank
   2. The stock market crash (Black Tuesday)
   3. A drought that destroyed US agriculture
   4. The passage of the Smoot-Hawley Tariff
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   Answer: The stock market crash (Black Tuesday)

   On October 29, 1929, the stock market lost about $14 billion in a single day (roughly $240 billion today). The crash wiped out investors and triggered a cascade of bank failures across the country.

2. The Great Depression ended as soon as FDR's New Deal programs were implemented in 1933.

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   Answer: False

   The New Deal stabilized the economy and reduced unemployment but did not end the Depression. Unemployment was still around 14-19% in the late 1930s. It took the massive defense spending of World War II to fully end it.

3. Franklin D. Roosevelt's package of government programs to combat the Depression was called the ___.

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   Answer: New Deal

   FDR coined the phrase 'a new deal for the American people' in his 1932 acceptance speech. New Deal programs became so numerous they were nicknamed 'alphabet soup' because of all their initials: FDIC, WPA, TVA, CCC, SEC...

4. The Dust Bowl of the 1930s was caused by:

   1. Floods along the Mississippi River
   2. A drought combined with soil erosion from over-farming in the Great Plains
   3. A volcanic eruption in the Pacific Northwest
   4. Hurricane damage along the Gulf Coast
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   Answer: A drought combined with soil erosion from over-farming in the Great Plains

   A decade of drought hit an agricultural region that had already been damaged by over-plowing that removed native grasses. Without root systems to hold the soil, wind turned it to dust. Enormous 'black blizzards' buried farms.

5. Before the FDIC was created, if your bank failed during the Depression, you could lose all your savings.

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   Answer: True

   Before the FDIC (1933), bank failures were catastrophic for depositors — there was no insurance. When banks closed during the Depression, millions of people lost their entire savings overnight with no recourse.

6. What was the WPA (Works Progress Administration)?

   1. An agency that regulated the stock market
   2. A New Deal program employing millions of Americans on public works projects
   3. A foreign aid program to help other countries recover from the Depression
   4. A program providing direct cash payments to unemployed workers
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   Answer: A New Deal program employing millions of Americans on public works projects

   The WPA (1935-1943) employed about 8.5 million workers building 650,000 miles of roads, 125,000 public buildings, 75,000 bridges, and thousands of parks, schools, and airports. It also supported artists, writers, and musicians.

7. During the Great Depression, unemployment reached approximately ___% at its peak in 1933.

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   Answer: 25

   Unemployment hit 24.9% in 1933, representing about 13 million people without work. This doesn't count the millions more who were working part-time or in dramatically lower-paying jobs than before the crash.

8. The Smoot-Hawley Tariff (1930) made the Depression worse by:

   1. Lowering prices for American consumers
   2. Triggering retaliatory tariffs that collapsed international trade
   3. Allowing foreign goods to flood the US market
   4. Raising taxes on American workers
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   Answer: Triggering retaliatory tariffs that collapsed international trade

   The Smoot-Hawley Tariff raised duties on over 20,000 imported goods. Trading partners retaliated with their own tariffs. US exports collapsed from $5.2 billion in 1929 to $1.7 billion in 1933, deepening the Depression.

9. The Social Security program created by FDR still provides retirement and disability benefits to Americans today.

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   Answer: True

   The Social Security Act of 1935 created programs that still exist: Old-Age Insurance (the retirement checks), Unemployment Insurance, and Aid to Families with Dependent Children. It is one of the most enduring New Deal achievements.

10. What ultimately ended the Great Depression?

    1. FDR's New Deal programs
    2. The Smoot-Hawley Tariff being repealed
    3. World War II mobilization and defense spending
    4. A natural recovery of the stock market
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    Answer: World War II mobilization and defense spending

    When the US entered WWII after Pearl Harbor, defense spending exploded. Factories that had been idle hired millions of workers to build tanks, planes, and ships. By 1944, unemployment had dropped to 1.2%.

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