GED Social Studies : Terminology and Concepts

Study concepts, example questions & explanations for GED Social Studies

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Example Questions

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Example Question #1 : Economics

In economic terms a "comparative advantage" is best described as __________

Possible Answers:

the belief that a country should primarily focus on ensuring a favorable balance of trade by exporting more than it imports. 

the reason why the work force always has less power than those who employ them. 

the ability of one country to produce a resource cheaper than another country can. 

the manner in which a company with a monopoly can lower prices and ensure the continued lack of competition. 

the unique advantages possessed by the American Republic that have allowed the country to emerge as the world's dominant economic power. 

Correct answer:

the ability of one country to produce a resource cheaper than another country can. 

Explanation:

In economic terms "comparative advantage" refers to a situation where one country can produce some goods or resources at a lower cost than another country. 

Example Question #201 : Content Areas

Adam Smith is most principally associated with __________

Possible Answers:

laissez-faire economics.

freedom of religion.

mercantilism.

the social contract.

a system of checks and balances in government.

Correct answer:

laissez-faire economics.

Explanation:

Adam Smith was an Enlightenment-era economic philosopher. He is most remembered for laying down the principle of free-market economics called laissez-faire economics. His theory stated that an economy would have the best success if the government does not intervene. His ideas were widely adopted in Europe and America over the next couple of centuries and were an important foundation of the spread of capitalism around the world.

Example Question #1 : Terminology And Concepts

The economic theory of mercantilism states that the primary goal of a nation should be _________________.

Possible Answers:

to encourage a favorable balance of trade

to prevent taxes from being levied on the wealthiest members of society

to spread free market capitalism to other nations

to protect the trading relationships established with other nations

the liberation and protection of the working classes

Correct answer:

to encourage a favorable balance of trade

Explanation:

Mercantilism was an important economic theory in the first era of European colonialism, from roughly 1500 until 1800. With mercantilism, the primary goal of a nation, and a government, should be to regulate trade and the means of production in order to encourage a favorable balance of trade. Essentially, for a nation to succeed according to mercantilist theory, it needs to be exporting more than it is importing. This theory drove many of the actions taken by England and France, along with the other colonial powers, during the age of exploration and the age of colonialism.

Example Question #1 : Labor And Capital

Someone who works during a strike, rendering the strike impotent, is called a __________.

Possible Answers:

partner

trustee

quorum

messiah

scab

Correct answer:

scab

Explanation:

"Scab" is used, in a demeaning fashion, to describe someone who renders the effects of a strike less effective by continuing to work during the strike or by taking the job of a striking member of a union.

Example Question #1 : Terminology And Concepts

Frictional unemployment occurs when __________.

Possible Answers:

the economy is in recession

unions are not able to go on strikes

the United States is at war

the government lowers taxes

workers are dissatisfied with their jobs

Correct answer:

workers are dissatisfied with their jobs

Explanation:

Frictional unemployment is the name given to a situation whereby people quit because they are dissatisfied with their jobs.

Example Question #2 : Economics

What name is given to the working class in the writings of Karl Marx?

Possible Answers:

Bourgeoise

Plebeians

Proletariat

Gentry

Clergy

Correct answer:

Proletariat

Explanation:

In The Communist Manifesto, the working class is referred to by the latin term “proletariat.” Marx argued that the “proletariat” were essentially enslaved by the bourgeoise and the upper class who controlled the means of production and thus all the wealth and property.

Example Question #291 : Ged Social Studies

The Iron Law of Wages states that __________.

Possible Answers:

the value of a job is determined by how rare the skill set required is and how much money it produces

the wage of a laborer will always fall to the minimum needed to keep the laborer alive and working

when workers are paid higher wages they are likely to do their job much better and provide a better quality product

the more people who work within an economic system the greater power they have to work together for reform

workers must be paid enough so that they do not consider working for a different company

Correct answer:

the wage of a laborer will always fall to the minimum needed to keep the laborer alive and working

Explanation:

The Iron Law of Wages is a famous economic term that originated during the eighteenth or nineteenth Century. It is actually difficult to track who first used the terminology or who first wrote about the idea; historians sometimes credit Malthus, Ricardo, Marx, Engels and so on. The law itself is well-understood: it states that the wage of a laborer will always fall to the very minimum needed to keep the worker working. Because of the massive competition in the labor market, employers have the power to pay their workers as little as possible, because if the worker refuses those terms, someone else will simply take the job. To rephrase: the money paid to a worker will always be the very minimum needed to keep the worker alive and working.

Example Question #8 : Economics

Sally starts a business that aims to produces parts for a local factory. She hires Stephanie to work for her business and physically make her product. She rents a building for her business from Ed. She buys computers and machinery from Ellen. She borrows money from Michael's bank in order to get started. She hopes to convince Allen to actually purchase her product.

In the preceding passage, which person can be said to be contributing labor as a factor of production in Sally's business? 

Possible Answers:

Ellen

Ed

Allen

Michael

Stephanie

Correct answer:

Stephanie

Explanation:

Labor is defined as the factor of production that is directly attributable to human effort and work. Labor is distinct from capital, in that capital describes inanimate goods that are essential to production, while labor describes the human element of production. Ed, Ellen, and Michael all contribute to the production of Sally's business, but they do so through the provision of capital. Stephanie contributes her own effort and work as a laborer for Sally. Meanwhile, Allen, as a customer, isn't directly involved in the production process.

Example Question #1 : Economics

A business that is founded by several investors collectively, who share a portion of the business and a portion of the profits is called a __________.

Possible Answers:

joint stock company

stock trust monopoly

antitrust business

combined arms company

antitrust suit

Correct answer:

joint stock company

Explanation:

A joint stock company is a large scale business whereby shares (or stocks) are owned by numerous individuals, thereby distributing the responsibility for the company, the risk involved for the individual, and the profits that can be made. The development of the joint stock company by the Dutch, Russians, English, and French at various times in the sixteenth and seventeenth centuries was a very important development in economic history, providing much of the means for Europe to gain great material wealth from the age of Colonialism.

Example Question #1 : Economics

A mutually beneficial relationship between two or more countries, in which they rely on one another for resources, production, or services is generally called __________

Possible Answers:

specialization.

opportunity cost. 

monopolization. 

trustbusting. 

interdependence.

Correct answer:

interdependence.

Explanation:

"Interdependence" is used to refer to a situation that exists between two or more countries in which they rely on one another for the exchange of raw resources, finished products, goods, and services to the mutual betterment of their respective economies.

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