GED Social Studies : Other Economic Concepts

Study concepts, example questions & explanations for GED Social Studies

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Example Questions

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. 

trustbusting. 

interdependence.

monopolization. 

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.

Example Question #1 : Other Economic Concepts

In which century did social security emerge in the Western world?

Possible Answers:

The twentieth century

The eighteenth century

 The fifteenth century

The nineteenth century

The twenty-first century

Correct answer:

The twentieth century

Explanation:

Social Security is a government program whereby people who have very little money or are too infirm, old, or disabled to earn money of their own are provided a certain amount of support by the government. It emerged in the twentieth century, partly as a product of increasing state control over the lives of citizens and partly out of the progressive mentality that was prevailing at the time. The United States has an extensive Social Security system, although significantly less than many European countries.

Example Question #2 : Other Economic Concepts

For some time there are two companies that sell stuffed turtles on the national market. After a lengthy negotiation, Company A buys out Company B and now has effective control over the entire market. Company A now has __________.

Possible Answers:

a monopoly

a demand

a supply

an incentive

competition

Correct answer:

a monopoly

Explanation:

A monopoly occurs when one company controls the means or production of a product and is able to exclusively sell that product on the market. The problem with this system is it allows the company to effectively charge higher prices than might be considered "fair." The alternative to this is competition, which occurs when two or more companies control a share of the market and have to compete with each other to produce better quality products at a lower price.

Example Question #1 : Other Economic Concepts

There is only one company from which I can purchase a diamond ring in my community, this company has a(n) __________.

Possible Answers:

union

trust

monopoly

recession

corporation

Correct answer:

monopoly

Explanation:

If there is only one company that controls the sale of any particular product they have a "monopoly" on that product.

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