Question

The first main cause of economic depression was –

• A. Excess production of agriculture
• B. Privatization of banks
• C. Excess investment
• D. Increase in the number of industries

Hint:

Remember: Overproduction in agriculture created imbalance between supply and demand, which was a key trigger of the Great Depression.

Answer 1

The Correct Option is A

Step 1: Context of the Great Depression (1929)
The Great Depression, which began in 1929, was the worst economic downturn in modern history. It originated in the United States and soon spread globally.

Step 2: Role of agricultural overproduction
In the 1920s, agricultural production increased rapidly due to technological advances and expanded farming. However, demand for agricultural goods did not increase at the same rate.

Step 3: Consequences
- This led to excess production of crops.
- Prices of agricultural goods fell sharply.
- Farmers could not repay debts, leading to a chain reaction affecting banks and industries.

Step 4: Conclusion
Thus, the first and major cause of the economic depression was excess production of agriculture.
\[ \boxed{\text{Excess production of agriculture}} \]