Q's

1. How does a person make money on an investment?
-Buy low and sell high.
2. What makes 'cheap credit' mean?
-Cheap credit is mean because they are targeting people who have troble with their credit and they have very high interest rates.
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3. What is 'buying on margin' mean?
-The person does not have the money to pay back the loan, and the only reason they can pay it off is because they made money off of it.
- You figure that you can sell the product, and you are out the 30 dollars.
(refer to board)

-Stung the economy.
Betting the margin will keep going up4. How is 'speculation' different from 'investment'?
-People would buy and sell quick stocks quickly to make a quick buck.
Because of the buying and selling stock value increased.

5. How does 'panic selling' start?
-When everyone tried to sell everything at the same time.
-When everyone tried to sell, and no one wanted to buy, or could afford to buy.

6. How can high unemployment start a negative economic cycle?
-When people don't have jobs you have no money to buy stuff.
The more people that get fired, the more stuff that doesn't get sold.
Unemployment goes up^ and productivity goes down.


7. How did increases in technology contribute to overproduction in the 1920's?
-We came up with everything and all the ideas -----> Then they made it.
- Before we made it and they came up with it.
-It gives people jobs, and more people are working to produce stuff.


8. What is meant by 'uneven distribution of wealth? Is it a bad thing?
-That some people have more money than others.
- Yes, this is a bad thing because more money is going to some people, than others.


9. What is a tariff, and why don't they seem to work in the modern economy (post-WWI)?
-A tariff raises the price.
-It's an import tax.
10. What is 'rugged individualism? Is it real?
-Rugged individualism is an idea. In america we like to think that we are self made man and women.
-We make ourselves and our own destiny.
-It is true of all america and it mostly with republican.
-11. What is a Hooverville, and why is it called that?-10000 to 20000 have lost there homes and jobs.
-homeless people grouping together=hooverville