WEST-E Social Studies Complete Practice Test 2025

The stock market crash of 1929 is widely recognized as the event that marked the beginning of the Great Depression. This crash resulted in a significant and sudden loss of wealth for many investors, leading to a crisis of confidence in the financial system. The aftermath saw widespread bank failures, significant unemployment, and a steep decline in consumer spending and business investment.

As the crash severely impacted both individuals and businesses, it acted as a catalyst for deeper economic troubles that unfolded in the years that followed. The resulting economic downturn was characterized by a prolonged period of hardship, which did not truly stabilize until the onset of World War II.

The other events listed do not align with the onset of the Great Depression. For instance, the increase of industrial production generally signifies economic growth rather than decline. The Treaty of Versailles, signed in 1919, concluded World War I and is unrelated to the economic issues that led to the Great Depression. The New Deal, while significant in addressing the economic crisis, was a series of programs and reforms initiated in response to the Depression, not a precursor to it. Thus, the stock market crash stands out distinctly as the pivotal moment that launched the country into this tumultuous period.