depression ?s

1. How does a person make money on an investment?


make people want to buy something for more than its worth to make it





2. What makes 'cheap credit' mean?


economy is doing well, people believe it getting better, the people don't think so anymore





3. What is 'buying on margin' mean?


10% of cost to buy stock, bad idea, don't have money





4. How is 'speculation' different from 'investment'?


speculation you dont care about the company you only want to buy and sell quickly, Investment you actually believe in the company and stick with it





5. How does 'panic selling' start?


everyone wants to sell and no one wants to buy





6. How can high unemployment start a negative economic cycle?


dont have a job so you dont buy stuff from companies and companies start making less products and fire people because the arent needed, cycle keeps happening, "dog chasing tail."





7. How did increases in technology contribute to overproduction in the 1920's?


technology took away jobs because it made jobs easier, made too many things that nobody could buy





8. What is meant by 'uneven distribution of wealth? Is it a bad thing?


dividing money unevenly to people, different classes lower, middle, higher.





9. What is a tariff, and why don't they seem to work in the modern economy (post-WWI)?


tax that is put on goods from other countries.





10. What is 'rugged individualism? Is it real?





11. What is a Hooverville, and why is it called that?

cities of homeless people on other peoples land, they blame President Hoover for being homeless and poor.