Menu

Practice Test Social Studies – set 10

These questions are written by our Social Studies guru and are similar to the GED Test. Each question has five answer choices. Choose the best answer for each question.

 

Question 1 of 25

1. Which of the following is an example of something that would not be included in the United States GDP?
A.
B.
C.
D.

Question 1 of 25

Question 2 of 25

2. A person at an all-you-can-eat buffet devours his first plate of food, enjoys the second plate and can hardly stomach the third plate. How would an economist explain what is happening here?
A.
B.
C.
D.

Question 2 of 25

Question 3 of 25

3. How does a government measure inflation?
A.
B.
C.
D.

Question 3 of 25

Question 4 of 25

4. A plant that produces 100 units of an item decides to make 101 units instead. What is the cost of this additional cost called?
A.
B.
C.
D.

Question 4 of 25

Question 5 of 25

5. Which of the following is not a necessary condition for a perfect market?
A.
B.
C.
D.

Question 5 of 25

Question 6 of 25

6. Which economic system states that the wealth of a nation depends on its total available capital?
A.
B.
C.
D.

Question 6 of 25

Question 7 of 25

7. How do economists quantify the possibility that invested money could have been used for another purpose later on?
A.
B.
C.
D.

Question 7 of 25

Question 8 of 25

8. Why does the marginal cost of most manufactured goods decrease? 
A.
B.
C.
D.

Question 8 of 25

Question 9 of 25

9. What is a necessary prerequisite for industrialization?
A.
B.
C.
D.

Question 9 of 25

Question 10 of 25

10. An investment made by a company or entity based in one country, into a company or entity based in another country is a Foreign Direct Investment. These FDI’s differ substantially from indirect investments such as portfolio flows, wherein overseas institutions invest in equities listed on a nation's stock exchange. Entities making direct investments typically have a significant degree of influence and control over the company into which the investment is made. Open economies with skilled workforces and good growth prospects tend to attract larger amounts of foreign direct investment than closed, highly regulated economies. The standard of living in the recipient country is also improved by higher tax revenue from the company that received the foreign direct investment. However, sometimes countries neutralize that increased revenue by offering tax incentives to attract the FDI in the first place.

Most often, Open Economies are the destination for FDI (Foreign Direct Investment). Which statement is true regarding this statement?
A.
B.
C.
D.
E.

Question 10 of 25

Question 11 of 25

11. An investment made by a company or entity based in one country, into a company or entity based in another country is a Foreign Direct Investment. These FDI’s differ substantially from indirect investments such as portfolio flows, wherein overseas institutions invest in equities listed on a nation's stock exchange. Entities making direct investments typically have a significant degree of influence and control over the company into which the investment is made. Open economies with skilled workforces and good growth prospects tend to attract larger amounts of foreign direct investment than closed, highly regulated economies. The standard of living in the recipient country is also improved by higher tax revenue from the company that received the foreign direct investment. However, sometimes countries neutralize that increased revenue by offering tax incentives to attract the FDI in the first place.

Overseas institutions or Individuals investing in equities listed on a nation's stock exchange is an example of Indirect Foreign Investment.

Which statement is true regarding this statement?
A.
B.
C.
D.
E.

Question 11 of 25

Question 12 of 25

12. An open market economy is the opposite of a closed market economy - that is, a market with a prohibitive number of regulations restricting free market activity. Most markets are neither truly open nor truly closed, but fall on a continuum somewhere between the two extremes. The United States would be considered to have a relatively open market economy, while North Korea would be considered to have a relatively closed market economy.

An open market economy is characterized by which of the following statements:

A.
B.
C.
D.
E.

Question 12 of 25

Question 13 of 25

13. An open market economy is the opposite of a closed market economy - that is, a market with a prohibitive number of regulations restricting free market activity. Most markets are neither truly open nor truly closed, but fall on a continuum somewhere between the two extremes. The United States would be considered to have a relatively open market economy, while North Korea would be considered to have a relatively closed market economy.

A closed market economy is characterized by which of the following statements:
A.
B.
C.
D.
E.

Question 13 of 25

Question 14 of 25

14. This text comes from a recent article

Which comes first: supply or demand? This question has serious policy implications, especially as President Barack Obama proposes $447 billion in additional stimulus spending in order to try to spur job growth in America. “Demand-siders,” also known as Keynesians (after influential economist John Maynard Keynes), insist that short-run economic fluctuations are caused by shocks to the economy that leave aggregate demand. Another theory, however, first put forth by Jean Baptiste Say, an economist in the 19th century, articulates that supply creates demand. It became broadly known as “Say’s Law,” and has policy implications for “supply-siders.” Say’s Law stipulates that, since supply creates its own demand, overproduction—the creation of goods and services without an equal flow of demand for those goods and services—is impossible. This renders Keynesian policy useless at best and destructive at worst (since it interferes with normal free-market processes). So which theory is correct?

In normal, meaning non-recessionary, times, with full employment and reasonably flexible wages, Say’s Law holds. Supply creates its own demand, because at its most fundamental, supply is demand: “The supply of the thing they make is all that people have, in fact, to offer in exchange for the things they want.” In that sense, the supply of a farmer’s crops constitutes his ability to demand an automaker’s automobile. In bad times, however, excess supply is indeed possible. That’s why during recessions many businesses have unsold inventory: Supply and demand are out of equilibrium. So does this mean that Keynesians are correct—that, in bad times, government can prop up demand by deficit spending? Not quite. This slightly more sophisticated understanding of the law states that production creates demand. Say wrote: “It is production which opens a demand for products…Thus the mere circumstance of the creation of one product immediately opens a vent for other products.” In other words, the demand one has for goods and services comes from the income he or she produces. So what does this mean in terms of policy implications? The way to encourage more production is to increase incentives for additional labor and investment. Taxes on income, corporate earnings, dividends and capital gains, among others, penalize production and are disincentives to additional work effort. Reducing those disincentives encourages people to take on additional work, resulting in more production in the economy, elevating both total supply and demand in tandem. Among politicians and academics, Keynesian philosophy is ubiquitously accepted. However, its repeated failures over the last few years have left Americans seeking an alternative explanation for what their common sense already tells them: No economy can spend its way to prosperity, whether it’s $447 billion or $845 billion.

Which statement is true?
A.
B.
C.
D.
E.

Question 14 of 25

Question 15 of 25

15.

During the period the UK was involved in WW II, it had 3 Prime Ministers. From September 3, 1939, until May 10, 1940, the position was occupied by Neville Chamberlain. From May 10, 1940,  until July 26, 1945, the man in charge was Winston Churchill. After the General election, the position was taken by Clement Attlee who stayed in power until 1951.


Among them who was most famous, and why?
A.
B.
C.
D.
E.

Question 15 of 25

Question 16 of 25

16.

The purchase of Alaska in 1867 marked the end of Russian efforts to expand trade and settlements to the Pacific coast of North America, and became an important step in the United States’ rise as a great power in the Asia-Pacific region. As the United States expanded westward in the early 1800’s, Americans soon found themselves in competition with Russian explorers and traders. Russia offered to sell Alaska to the United States in 1859, believing the United States would off-set the designs of Russia’s greatest rival in the Pacific, Great Britain.

The looming U.S. Civil War delayed the sale, but after the war, Secretary of State William Seward quickly took up a renewed Russian offer and on March 30, 1867, agreed to a proposal from Russia’s Minister in Washington, Edouard de Stoeckl, to purchase Alaska for $7.2 million. This purchase ended Russia’s presence in North America and ensured the U.S. access to the Pacific northern rim. The government of Alexander II got rid of Alaska as if it had been a “non-core asset.” Those financial arguments in favor of the deal look especially ludicrous. The state budget of the Russian Empire totaled about half a billion rubles at the time. Taking into account that the ruble and the dollar were more or less in parity in terms of value during the period, there was no way the deal could have had a considerable beneficial effect on Russia’s economy.

Why came the Alaska sale offer to the USA from Russia?
A.
B.
C.
D.
E.

Question 16 of 25

Question 17 of 25

17.

The purchase of Alaska in 1867 marked the end of Russian efforts to expand trade and settlements to the Pacific coast of North America, and became an important step in the United States’ rise as a great power in the Asia-Pacific region. As the United States expanded westward in the early 1800’s, Americans soon found themselves in competition with Russian explorers and traders. Russia offered to sell Alaska to the United States in 1859, believing the United States would off-set the designs of Russia’s greatest rival in the Pacific, Great Britain. The looming U.S. Civil War delayed the sale, but after the war, Secretary of State William Seward quickly took up a renewed Russian offer and on March 30, 1867, agreed to a proposal from Russia’s Minister in Washington, Edouard de Stoeckl, to purchase Alaska for $7.2 million. This purchase ended Russia’s presence in North America and ensured the U.S. access to the Pacific northern rim. The government of Alexander II got rid of Alaska as if it had been a “non-core asset.” Those financial arguments in favor of the deal look especially ludicrous. The state budget of the Russian Empire totaled about half a billion rubles at the time. Taking into account that the ruble and the dollar were more or less in parity in terms of value during the period, there was no way the deal could have had a considerable beneficial effect on Russia’s economy.

What was the American interest of purchasing Alaska? 
A.
B.
C.
D.
E.

Question 17 of 25

Question 18 of 25

18.

FDR was a fantastic politician who related well to the people of America in a difficult economic time.  But it's important to remember the New Deal was not his idea - the plan was actually devised by his brain trust, a group of economic advisers, businessmen, and industry leaders who knew how the economy worked.  FDR labeled the plan and sold it to Congress and the public. The New Deal concentrated on three areas: Relief, which provided jobs and food aid to those most in need by 1933; Recovery, which preserved the major industries and economic sectors we would need to survive the Depression and rebuild the economy later (banking, agriculture, housing, etc.); and Reform, to change the laws and regulate the economy so that future Depressions could be prevented. Spending government money to do these things is called 'Keynesian economics' after George Maynard Keynes, a member of the Brain Trust.  It worked, but it was short term, and only helped the economy as long as the government kept spending.



Which one is the best example of RELIEF?
A.
B.
C.
D.
E.

Question 18 of 25

Question 19 of 25

19.

FDR was a fantastic politician who related well to the people of America in a difficult economic time.  But it's important to remember the New Deal was not his idea - the plan was actually devised by his brain trust, a group of economic advisers, businessmen, and industry leaders who knew how the economy worked.  FDR labeled the plan and sold it to Congress and the public. The New Deal concentrated on three areas: Relief, which provided jobs and food aid to those most in need by 1933; Recovery, which preserved the major industries and economic sectors we would need to survive the Depression and rebuild the economy later (banking, agriculture, housing, etc.); and Reform, to change the laws and regulate the economy so that future Depressions could be prevented. Spending government money to do these things is called 'Keynesian economics' after George Maynard Keynes, a member of the Brain Trust.  It worked, but it was short term, and only helped the economy as long as the government kept spending.



Which one is the best example of RECOVERY?
A.
B.
C.
D.
E.

Question 19 of 25

Question 20 of 25

20.

Beveridge was a British economist and social reformer, closely associated with the development of the welfare state. When, in 1941, the government commissioned a report into the ways that Britain should be rebuilt after World War Two, Beveridge was an obvious choice to take charge. He published his report in 1942 and recommended that the government should find ways of fighting the five 'Giant Evils' of 'Want, Disease, Ignorance, Squalor and Idleness’. In 1945, the Labour Party defeated Winston Churchill's Conservative Party in the general election. The new Prime Minister, Clement Attlee, announced he would introduce the welfare state outlined in the 1942 Beveridge Report. This included the establishment of a National Health Service in 1948 with free medical treatment for all. A national system of benefits was also introduced to provide 'social security' so that the population would be protected from the 'cradle to the grave'. The new system was partly built on the national insurance scheme set up by Lloyd George in 1911. People in work still had to make contributions each week, as did employers, but the benefits provided were now much greater. In 1946, Beveridge was made a peer and became leader of the Liberals in the House of Lords. He died on 16 March 1963.

What was the core recommendation of Beveridge’s commission?
A.
B.
C.
D.
E.

Question 20 of 25

Question 21 of 25

21.

Beveridge was a British economist and social reformer, closely associated with the development of the welfare state. When, in 1941, the government commissioned a report into the ways that Britain should be rebuilt after World War Two, Beveridge was an obvious choice to take charge. He published his report in 1942 and recommended that the government should find ways of fighting the five 'Giant Evils' of 'Want, Disease, Ignorance, Squalor and Idleness’. In 1945, the Labour Party defeated Winston Churchill's Conservative Party in the general election. The new Prime Minister, Clement Attlee, announced he would introduce the welfare state outlined in the 1942 Beveridge Report. This included the establishment of a National Health Service in 1948 with free medical treatment for all. A national system of benefits was also introduced to provide 'social security' so that the population would be protected from the 'cradle to the grave'. The new system was partly built on the national insurance scheme set up by Lloyd George in 1911. People in work still had to make contributions each week, as did employers, but the benefits provided were now much greater. In 1946, Beveridge was made a peer and became leader of the Liberals in the House of Lords. He died on 16 March 1963.




Which one is the best example of Social Security?
A.
B.
C.
D.
E.

Question 21 of 25

Question 22 of 25

22.

Sent on an expedition by Francis I, King of France, Jacques Cartier arrived at Gaspé in 1534, taking possession of lands that had been inhabited for thousands of years by Amerindians and the Inuit. In 1608, Samuel de Champlain made landfall on the north shore of the St. Lawrence River at a spot that the Aboriginals called Kébec. In 1642, Paul Chomedey de Maisonneuve founded a Catholic mission that he named Ville-Marie and which would become Montréal at the end of the 18th century. New France expanded rapidly between 1660 and 1713. During the Seven Years’ War, the army of General Wolfe laid siege to Québec, and the Battle of the Plains of Abraham culminated in the defeat of the French General Montcalm on September 13, 1759. Four years later, with the signing of the Treaty of Paris, the King of France ceded to the British crown “Canada and all its dependencies.” This led to significant immigration on the part of English, Irish and Scottish settlers. In 1791, the Constitutional Act established two provinces in British North America: Upper Canada (Ontario), with an English-speaking majority, and Lower Canada (Québec), which had a French‑speaking majority. The Lower Canada Rebellion, in 1837 and 1838, was put down decisively by the British army. In 1867, the British North America Act established a federation of provinces that became known as Canada.

The Constitutional Act of 1791 established two provinces based on ……
A.
B.
C.
D.
E.

Question 22 of 25

Question 23 of 25

23.

Sent on an expedition by Francis I, King of France, Jacques Cartier arrived at Gaspé in 1534, taking possession of lands that had been inhabited for thousands of years by Amerindians and the Inuit. In 1608, Samuel de Champlain made landfall on the north shore of the St. Lawrence River at a spot that the Aboriginals called Kébec. In 1642, Paul Chomedey de Maisonneuve founded a Catholic mission that he named Ville-Marie and which would become Montréal at the end of the 18th century. New France expanded rapidly between 1660 and 1713. During the Seven Years’ War, the army of General Wolfe laid siege to Québec, and the Battle of the Plains of Abraham culminated in the defeat of the French General Montcalm on September 13, 1759. Four years later, with the signing of the Treaty of Paris, the King of France ceded to the British crown “Canada and all its dependencies.” This led to significant immigration on the part of English, Irish and Scottish settlers. In 1791, the Constitutional Act established two provinces in British North America: Upper Canada (Ontario), with an English-speaking majority, and Lower Canada (Québec), which had a French‑speaking majority. The Lower Canada Rebellion, in 1837 and 1838, was put down decisively by the British army. In 1867, the British North America Act established a federation of provinces that became known as Canada.

By the Constitutional Act of 1791, Canada was ruled by: 
A.
B.
C.
D.
E.

Question 23 of 25

Question 24 of 25

24.

Canada entered the 1939-1945 War on 10th September 1939. Within two months the first contingents of Canadian troops arrived in the United Kingdom to supplement the British Expeditionary Forces (BEF). Forestalled by the evacuation of the British Army from Dunkirk and the Channel ports, Canada's role became one of defence of the British Isles. Far across the globe a small force of Canadians arrived in Hong Kong in time to meet the Japanese invasion, and fought with the British, Indian and Hong Kong forces in defense of the colony until the surrender on Christmas Day 1941. Canadian airmen fought in the Battle of Britain, North Africa, Italy and the Normandy invasion. About 17,000 (the great majority) died while serving with Bomber Command.



Primarily, Canada’s military role in the WW II was:
A.
B.
C.
D.
E.

Question 24 of 25

Question 25 of 25

25.

Canada entered the 1939-1945 War on 10th September 1939. Within two months the first contingents of Canadian troops arrived in the United Kingdom to supplement the British Expeditionary Forces (BEF). Forestalled by the evacuation of the British Army from Dunkirk and the Channel ports, Canada's role became one of defence of the British Isles. Far across the globe a small force of Canadians arrived in Hong Kong in time to meet the Japanese invasion, and fought with the British, Indian and Hong Kong forces in defense of the colony until the surrender on Christmas Day 1941. Canadian airmen fought in the Battle of Britain, North Africa, Italy and the Normandy invasion. About 17,000 (the great majority) died while serving with Bomber Command.



The invasion of Normandy was the war between:
A.
B.
C.
D.
E.

Question 25 of 25


 

Keep Calm and Just Graduate!

These practice tests are part of our GED online prep, click here to read how it works. The real GED, TASC, and HiSET tests are likely to be more difficult than these practice tests. So if you want to find out about your weak and strong subject fields, take one more practice test so you will understand which subject field(s) to focus on most.

Disclaimer This practice test is not related to the Official GED Practice Test™ produced and distributed by the American Council on Education (ACE) and the GED Testing Service. ACE and GED Testing Service LLC have not approved, authorized, endorsed, been involved in the development of, or licensed the substantive content of this practice test.