GED Social Studies Domain 3: Economics Welcome to your GED Social Studies Domain 3: Economics 1. GED Social Studies: Economics What economic principle is demonstrated when a government imposes a price ceiling on rents in a city, leading to a shortage of available apartments? A. Law of Supply B. Law of Demand C. Price Elasticity of Demand D. Market Equilibrium None 2. GED Social Studies: Economics In the context of international trade, what does the term "comparative advantage" refer to? A. The ability of a country to produce a good at a lower opportunity cost than another country. B. The capability of a country to produce more of a good, using the same amount of resources as another country. C. The strategy of a country to impose tariffs on imports to protect domestic industries. D. The practice of a country to devalue its currency to make its exports cheaper and imports more expensive. None 3. GED Social Studies: Economics Which of the following best describes a "progressive tax system"? A. A tax system where the tax rate decreases as the taxable amount increases. B. A tax system where the tax rate increases as the taxable amount increases. C. A tax system that applies the same tax rate to every taxpayer regardless of income level. D. A tax system that taxes only the highest earners in the economy. None 4. GED Social Studies: Economics What is the primary function of the Federal Reserve System 'the Fed' in the United States? A. To collect taxes and manage the government's money. B. To regulate the stock market and protect investors. C. To manage the country's monetary policy and control the money supply. D. To insure deposits in banks and financial institutions. None 5. GED Social Studies: Economics In economics, the "invisible hand" refers to: A. The role of central governments in allocating resources. B. The unintended social benefits resulting from individual actions. C. The manipulation of markets by monopolies. D. The impact of trade barriers on international markets. None 6. GED Social Studies: Economics Which of the following outcomes is a likely consequence of a country engaging in a trade war by imposing tariffs on imported goods? A. Decrease in the price of domestic goods. B. Increase in global economic cooperation. C. Retaliatory tariffs by other countries. D. Long-term increase in domestic employment. None 7. GED Social Studies: Economics What does the Lorenz Curve illustrate in economics? A. The distribution of income across a population. B. The relationship between unemployment and inflation. C. The effects of interest rates on investment. D. The trade-off between efficiency and equity. None 8. GED Social Studies: Economics The concept of "opportunity cost" is best described as: A. The cost associated with not choosing the second-best alternative. B. The total expenses incurred in the production of a good. C. The financial loss experienced by investing in a failing market. D. The price of a product set by a monopolistic seller. None 9. GED Social Studies: Economics Hyperinflation is most likely to occur in a situation where: A. A government sharply decreases its spending. B. A central bank significantly reduces the money supply. C. A government persistently prints money to finance a budget deficit. D. A country experiences a substantial increase in exports. None 10. GED Social Studies: Economics The term "fiscal policy" refers to: A. The actions of a central bank to control the money supply and interest rates. B. The regulation of the stock market and financial institutions. C. The use of government spending and taxation to influence the economy. D. The efforts to control inflation through wage and price freezes. None 11. GED Social Studies: Economics Which economic theory is primarily concerned with the total supply of goods and services that firms in an economy plan on selling during a specific time period? A. Keynesian Economics B. Supply-side Economics C. Demand-side Economics D. Classical Economics None 12. GED Social Studies: Economics What economic concept is illustrated by the Phillips Curve? A. The relationship between inflation and unemployment in an economy. B. The impact of fiscal policy on national debt. C. The correlation between stock market performance and economic growth. D. The effect of exchange rates on international trade. None 13. GED Social Studies: Economics In economics, "moral hazard" refers to a situation where: A. A party is more likely to take risks because the costs are borne by another party. B. An individual or firm avoids engaging in risky behavior due to ethical considerations. C. A market fails to allocate resources efficiently because of the actions of external regulators. D. Consumers prioritize moral values over economic gain in their purchasing decisions. None 14. GED Social Studies: Economics What is the primary economic function of the stock market? A. To provide a platform for the redistribution of wealth among citizens. B. To facilitate the exchange of goods and services between countries. C. To allow companies to raise capital by selling ownership shares to the public. D. To regulate the national interest rates and control inflation. None 15. GED Social Studies: Economics The term "deadweight loss" in economics refers to: A. The cost associated with producing one additional unit of a good. B. The loss of economic efficiency when the competitive equilibrium is not achieved. C. The financial loss companies incur from unsold inventory. D. The reduction in total revenue resulting from a price increase. None 16. GED Social Studies: Economics What does the term "crowding out" refer to in the context of fiscal policy? A. The displacement of private investment by public spending. B. The reduction in government spending as a result of increased public debt. C. The exclusion of small businesses from the market due to large government contracts. D. The overcrowding of market sectors by too many competing firms. None 17. GED Social Studies: Economics In the context of labor economics, what does the term "structural unemployment" refer to? A. Unemployment caused by a downturn in the economy. B. Unemployment resulting from the displacement of workers by technology. C. The natural rate of unemployment due to the normal turnover in the labor market. D. Unemployment caused by seasonal variations in employment. None 18. GED Social Studies: Economics The concept of "diminishing marginal utility" suggests that: A. The utility or satisfaction a consumer derives from a good decreases as its price decreases. B. As a consumer consumes more of a good, the additional satisfaction from each additional unit decreases. C. The cost of producing an additional unit of a good increases as the output increases. D. The overall utility of a good diminishes over time as it becomes outdated. None 19. GED Social Studies: Economics What is meant by "rent-seeking" behavior in economics? A. The process of looking for a rental property. B. The act of landlords increasing rent to maximize profits. C. The effort to increase one's share of existing wealth without creating new wealth. D. The strategy of investing in rental properties to diversify one's investment portfolio. None 20. GED Social Studies: Economics In the context of international economics, what is the "balance of payments"? A. A record of a country's domestic financial transactions with the rest of the world. B. The difference between a country's total exports and imports of goods. C. The total amount of debt a country owes to foreign creditors. D. A measure of a country's ability to pay off its short-term debts. None 1 out of 20 Time is Up! Time's up
