CP2-04 - RGKey.docx - Counterpoints Exploring Canadian Issues 2nd Ed Reading Guide for Chapter 4 \u2013 Answer Key 100 The 1930s A Decade of Despair

CP2-04 - RGKey.docx - Counterpoints Exploring Canadian...

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/ 100 The 1930s: A Decade of Despair Counterpoints: Exploring Canadian Issues , 2 nd Ed., Chapter 4, pages 88-117 Causes of the Great Depression : pages 90-93 1. What is a "recession"? Less severe than a depression, it is a downturn in economic activity in which the value of goods and services declines. 2. What is a "depression"? A long period of severe social and economic hardship, massive unemployment and suffering. 3. What is a "market economy"? An economic system in which individuals produce goods and services and prices are determined by supply and demand. 4. Explain why Canada's is a mixed economy. The government owns corporations (CNR), limits workers rights (to strike) and subsidizes some industries. 5. What is a "mixed economy"? An economic system in which both individuals and the government produce and sell goods. 6. What is meant by "supply and demand"? The quantity of a product that is available and the market's desire for that product; the price of the product varies based on supply and demand. 7. What is "prosperity"? In the economic cycle it is the period of economic growth and expansion. 8. What is a "recovery"? In the economic cycle it is the period following a recession during which the values of goods and services rises. 9. What is "overproduction"? It occurs when more goods are being produced than being sold; leads to a decrease in production and then an increase in unemployment. 10. What weakness in the Canadian economy was exposed by the Great Depression? Varied - heavily dependent on exports such as newsprint and grain; exports accounted for 80% of farm, forest and mining production; especially dependent on US markets. 11. How did the US try to protect its domestic producers after the Stock Market Crash? Imposed protective tariffs. 12. What are "tariffs"? Taxes on imported goods. 13. What is meant by the term "protectionism"? A system of using tariffs to raise the price of imported goods in order to protect domestic producers. 14. Why did world trade slow down in the 1930s? Countries around the world imposed tariffs. 15. Describe the effects of protectionism on countries' war debts. Varied - countries which owed the US money they borrowed during WWI relied on international trade to pay it back. When trade declined they were unable to repay debts. 16. What were "reparations"? Compensation from a defeated enemy for damages caused by a war. 17. How did German war reparations affect France and Britain? They were dependant on German reparations to pay off their own debts incurred in WWI. Germany couldn't pay them and F and B were in turn unable to service their debts. Counterpoints: Exploring Canadian Issues, 2nd Ed . Reading Guide for Chapter 4 – Answer Key © 2010 Better Classroom Guidebooks Page 1 of 5 Reading Guide for Counterpoints: Exploring Canadian Issues, 2 nd edition – Chapter 4 – Answer Key
18. What is "speculation"? Buying shares "on margin" with the expectation that the value of the shares will rise enough to pay back the loan and make a profit.

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