ECONOMICS
ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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There was a drought.
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They wanted to live in the city.
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There was a larger demand for factory products.
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None of the above
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Detailed explanation-1: -With heavy debts to pay and improved farming practices and equipment making it easier to work more land, farmers found it hard to reduce production. The resulting large surpluses caused farm prices to plummet. From 1919 to 1920, corn tumbled from $1.30 per bushel to forty-seven cents, a drop of more than 63 percent.
Detailed explanation-2: -Farmers who had borrowed money to expand during the boom couldn’t pay their debts. As farms became less valuable, land prices fell, too, and farms were often worth less than their owners owed to the bank. Farmers across the country lost their farms as banks foreclosed on mortgages.
Detailed explanation-3: -Why did farmers increase the amount they produced in the 1920s? War time in Europe led to high demand. Selling produce to Europe for the war.
Detailed explanation-4: -Stimulated largely by the extension of railroads throughout Texas between 1870 and 1900, farm and ranching enterprises expanded rapidly as emphasis on commercial production and marketing grew.