economic crisis

1. How does a person make money on an investment?
buy low sell high
2. What makes 'cheap credit' mean?means the economy is going well and its easy to get a loan

3. What is 'buying on margin' mean?investors only have to pay ten percent of stocks
4. How is 'speculation' different from 'investment'?people would buy and sell stocks quickly to make a quick buck are speculating
and people investing like what they are investing in
5. How does 'panic selling' start?when everyone tries to sell at once and then the market bottoms out
6. How can high unemployment start a negative economic cycle?because people arent making money and people arent spending money.
When they don’t spend the money the other factories can’t make moneyof the stuff people bought.

7. How did increases in technology contribute to overproduction in the 1920's?
technology allowed them to make more in a certain amount of time then when
they had to do it without technology

8. What is meant by uneven distribution of wealth? Is it a bad thing?
some people are wealthy but more are poor. This was bad becausemost people were poor.

9. What is a tariff, and why don't they seem to work in the moderneconomy (post-WWI)?
a tariff was an extra tax you have to pay for imported goods.

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

11. What is a Hooverville, and why is it called that?
Places where massive amounts of homeless people live