Average Price of US Wheat per Bushel, 1920–1929:
| Year | Price per Bushel |
|---|---|
| 1920 | $2.19 |
| 1923 | $0.92 |
| 1926 | $1.03 |
| 1929 | $1.05 |
Which of the following pre-existing economic weaknesses that contributed to the Great Depression is best reflected in the table?
- The persistent overproduction and falling prices in the agricultural sectorAnswer
- BThe implementation of federal price controls that artificially drove down crop prices
- CThe immediate relief provided to rural populations by New Deal agricultural subsidies
- DThe complete isolation of the domestic agricultural market from global trade partners
Answer
The persistent overproduction and falling prices in the agricultural sector
The correct answer is correct because the table demonstrates a sharp drop and stagnation in wheat prices during the 1920s. This reflects the post-World War I agricultural crisis, where overproduction and falling demand left American farmers with high debts and low incomes, creating a major structural weakness in the national economy prior to the 1929 stock market crash.
Step-by-Step Solution
Key Concept
Agricultural overproduction and distress in the 1920s as a structural cause of the Great Depression
Practice More
Analyze a similar primary source or chart showing the expansion of consumer debt and installment buying during the 1920s to compare different domestic causes of the Great Depression.
Estimated Time:45s