A Changing Economy - AP U.S. History

1. What was the purpose of the Wagner Act of 1935?

   To protect workers' rights to unionize and bargain collectively. Strengthened labor's ability to organize and negotiate wages.

2. Which economic policy approach did President Reagan advocate in the 1980s?

   Supply-side economics. Also called 'trickle-down economics' - tax cuts stimulate growth.

3. Which agency was created to insure bank deposits during the New Deal?

   Federal Deposit Insurance Corporation (FDIC). Restored public confidence in banking system after widespread failures.

4. What is the primary function of the Securities and Exchange Commission (SEC)?

   To regulate the securities markets and protect investors. Prevents fraud and ensures fair trading practices in financial markets.

5. What is the term for the economic downturn that occurs after a high period of growth?

   Recession. Economic contraction characterized by declining GDP and employment.

6. What was a major consequence of the Dust Bowl during the 1930s?

   Mass migration of families from the Great Plains. Severe drought and poor farming practices displaced thousands.

7. What was the main goal of the Taft-Hartley Act of 1947?

   To restrict the activities and power of labor unions. Reduced union power and allowed states to ban closed shops.

8. What was the purpose of the Social Security Act of 1935?

   To provide financial assistance to the elderly and unemployed. Created the first federal safety net for vulnerable populations.

9. Identify the purpose of the Glass-Steagall Act of 1933.

   To separate commercial and investment banking. Prevented risky speculation that contributed to 1929 crash.

10. What was the primary effect of the Smoot-Hawley Tariff Act of 1930?

    It increased tariffs and worsened the Great Depression. Protectionist policy reduced international trade during economic crisis.

11. What economic challenge did the United States face in the 1970s?

    Stagflation. Combination of high inflation and economic stagnation.

12. Which act aimed to stabilize the banking system during the Great Depression?

    Emergency Banking Act. Roosevelt's first action to restore confidence in banks.

13. What did the term 'Robber Baron' refer to during the late 19th century?

    Wealthy and powerful industrialists. Criticized for exploiting workers while amassing great wealth.

14. What economic policy is characterized by minimal government intervention?

    Laissez-faire. French term meaning 'let it be' - free market economics.

15. Which term describes the economic policy of high tariffs to protect domestic industries?

    Protectionism. Uses trade barriers to shield domestic producers from foreign competition.

16. Identify a key feature of the Gilded Age economy.

    Rapid industrialization and urbanization. Period of massive economic growth and technological advancement.

17. Which act established the Federal Reserve System in 1913?

    Federal Reserve Act. Created the central banking system to regulate monetary policy.

18. What is the main focus of fiscal policy?

    Government revenue and spending. Government uses taxation and spending to influence economic activity.

19. What is the term for a prolonged period of economic decline?

    Depression. Severe economic downturn lasting longer than a recession.

20. Identify the economic philosophy behind the New Deal.

    Keynesian economics. Emphasized government spending during economic downturns.

21. Which event marked the beginning of the Great Depression?

    Stock Market Crash of 1929. Black Tuesday devastated the economy and triggered widespread unemployment.

22. What was the main purpose of the Homestead Act of 1862?

    To provide land to settlers at a low cost. Encouraged westward expansion by offering 160 acres for $10.

23. Which economic theory focuses on supply and demand as a driving force?

    Classical economics. Emphasizes free markets and minimal government interference.

Study these flashcards