A Level History - America - Practice Exam

What was a major economic consequence of the Florida land boom during the 1920s?

1. It promoted widespread conservation efforts

2. It resulted in increased property values

3. It was unsustainable and led to disasters

4. It created long-term residential communities

The correct answer is: It was unsustainable and led to disasters

The Florida land boom of the 1920s was characterized by rapid speculation and investment in real estate, leading to a significant increase in property values and a sense of economic prosperity. However, this boom was largely driven by inflated expectations and unrealistic assessments of land value, resulting in an unsustainable economic situation. When the bubble burst in the late 1920s, many investors faced heavy financial losses, leading to bankruptcies and economic distress. The failure of this speculative bubble created economic problems that affected not only the state of Florida but also had ripple effects across the national economy during the Great Depression. While rising property values and the creation of communities might have been part of the initial boom, the eventual collapse exemplified the unsustainable nature of the speculative real estate market during that time. Thus, the recognition that the boom was unsustainable and its consequences were disastrous aligns with the historical outcomes experienced after the bubble burst.