Social Science (087) — AI-generated practice question

The Great Depression of 1929 was caused by two key factors:

Agricultural Overproduction: After World War I, farm output remained very high, causing a glut in markets. As prices fell, farmers produced more to maintain income, pushing prices down further. Farm produce rotted for lack of buyers, devastating agricultural incomes worldwide.

Withdrawal of US Loans: Many countries financed investments through US loans. When trouble appeared, US lenders panicked. Overseas loans fell from over $1 billion (1928) to one-quarter within a year. Countries dependent on these loans faced acute crisis — banks failed, currencies collapsed (e.g., British pound), and agricultural prices crashed further in Latin America and elsewhere.

Together, these factors caused falling incomes, bank failures, unemployment, and a global collapse in trade and production.

Source: Chapter 3, Section 3.4 – The Great Depression

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• This is a 3-mark "explain" question, so examiners expect two clear factors with a brief explanation of each — not just listing.
• The key causal chain must be shown: overproduction → price fall → income decline; and loan withdrawal → bank failure → global crisis.
• Mention the link between the two causes in your conclusion to show understanding of "together."
• Avoid adding unrelated points (e.g., India's impact) — stay focused on the causes asked.