A Level History - America - Practice Exam

What was a major goal of the Second Agricultural Adjustment Act in dealing with crop overproduction?

1. To raise farm prices and stabilize the market

2. To eliminate government intervention in markets

3. To promote exports of surplus crops

4. To encourage diversification of crops

The correct answer is: To raise farm prices and stabilize the market

The major goal of the Second Agricultural Adjustment Act was to raise farm prices and stabilize the market. This act, passed in 1938, aimed to address the ongoing issue of crop overproduction, which had been a significant problem since the Great Depression. By reducing production through a system of crop allotments and providing payments to farmers for not planting certain crops, the government sought to decrease supply in order to elevate prices. This strategy was intended to provide farmers with better income and financial stability, ultimately supporting the rural economy. The focus on raising prices was critical as it directly targeted the struggles of farmers during a time of economic uncertainty, helping to stabilize both the agricultural sector and the wider economy. Other choices, while relevant in different contexts, did not align with the primary aim of the Second Agricultural Adjustment Act.