TEXES Social Studies 232 Questions With
Solutions
Montesquieu Three branches of government with checks and balances
Voltaire Importance of freedom of speech, religion, press
Locke Two Treatises, people have natural rights and right to rebel
Full Employment Allows for up to 4% unemployment
Money Market Funds High rate of return, safe investment
Certificates of Deposit High rate of return, safe, have to invest for set period of time
Stocks Risky investment, but highest rate of return
Muslim Achievements in Middle Ages Algebra, Circumference of Earth, Cataract
Surgery, Doctor exams
, TEXES Social Studies 232 Questions With
Solutions
Inca Farming Terraces
Aztec Farming "Floating" gardens
Robert Fulton Invented the steamboat; Industrial Revolution
Second Industrial Revolution Came about due to steel - able to build skyscrapers
Ancient India Achievements Concept of zero and decimal system
Circular Flow Model of Economy Businesses pay households wages, rent, interest, and
dividends. Households provide businesses with the factors of production.
Keynes Government intervention needed in times of economic instability.
Marx Father of communism. Said people will rise up against government
, TEXES Social Studies 232 Questions With
Solutions
Adam Smith Father of capitalism. Stresses minimal government involvement in economy.
David Ricardo Capitalist; Law of Iron Wages - wages always decrease compared to prices
Traditional Economy Traditional practices such as farming, fishing, herding
Market Economy Supply and demand determines prices. AKA free enterprise/capitalist
Command Economy Government control - communist
Mixed Economy Both market and command. Government imposes regulations, but allows
free enterprise
Monopolistic Competition A few companies make the same product, advertise differently
Oligopoly A few companies dominate market, control prices
, TEXES Social Studies 232 Questions With
Solutions
Monoploly One company controls market
Pure Competition Goal of capitalism - infinite companies compete
Trade Deficit Total value of imports exceeds value of exports
Business Cycle Expansion, Crisis, Recession, Recovery
Expansion (cycle) GDP rises, unemployment shrinks, low interest rates
Crisis (cycle) Stock crash, bankrupcies
Recession (cycle) GDP drops, unemployment grows, high interest
Recovery (cycle) Interest rates drop (~5%)
Solutions
Montesquieu Three branches of government with checks and balances
Voltaire Importance of freedom of speech, religion, press
Locke Two Treatises, people have natural rights and right to rebel
Full Employment Allows for up to 4% unemployment
Money Market Funds High rate of return, safe investment
Certificates of Deposit High rate of return, safe, have to invest for set period of time
Stocks Risky investment, but highest rate of return
Muslim Achievements in Middle Ages Algebra, Circumference of Earth, Cataract
Surgery, Doctor exams
, TEXES Social Studies 232 Questions With
Solutions
Inca Farming Terraces
Aztec Farming "Floating" gardens
Robert Fulton Invented the steamboat; Industrial Revolution
Second Industrial Revolution Came about due to steel - able to build skyscrapers
Ancient India Achievements Concept of zero and decimal system
Circular Flow Model of Economy Businesses pay households wages, rent, interest, and
dividends. Households provide businesses with the factors of production.
Keynes Government intervention needed in times of economic instability.
Marx Father of communism. Said people will rise up against government
, TEXES Social Studies 232 Questions With
Solutions
Adam Smith Father of capitalism. Stresses minimal government involvement in economy.
David Ricardo Capitalist; Law of Iron Wages - wages always decrease compared to prices
Traditional Economy Traditional practices such as farming, fishing, herding
Market Economy Supply and demand determines prices. AKA free enterprise/capitalist
Command Economy Government control - communist
Mixed Economy Both market and command. Government imposes regulations, but allows
free enterprise
Monopolistic Competition A few companies make the same product, advertise differently
Oligopoly A few companies dominate market, control prices
, TEXES Social Studies 232 Questions With
Solutions
Monoploly One company controls market
Pure Competition Goal of capitalism - infinite companies compete
Trade Deficit Total value of imports exceeds value of exports
Business Cycle Expansion, Crisis, Recession, Recovery
Expansion (cycle) GDP rises, unemployment shrinks, low interest rates
Crisis (cycle) Stock crash, bankrupcies
Recession (cycle) GDP drops, unemployment grows, high interest
Recovery (cycle) Interest rates drop (~5%)
