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GED Social Studies: Economics in History Concepts

Importance ★★★☆☆ · 15% (estimate)

Overview

This chapter connects economics to major events in history.

European exploration in the 1400s and 1500s was driven by the search for trade routes to Asia and for wealth such as gold and spices. The Industrial Revolution, beginning in the 1700s, brought factories, and people moved from farms to cities for jobs.

The Great Depression began after the stock market crash of 1929. President Franklin D. Roosevelt's New Deal created programs such as Social Security (1935). During World War II, war production and military service put millions to work, and unemployment fell to very low levels.

Key concepts

  • Exploration

    European voyages driven by trade routes to Asia, gold, spices, land, and power.

    Memory tipWealth was the main driver.

  • Industrial Revolution

    The shift to machines and factories, which drew people from farms to cities (urbanization).

    Memory tipFactories pulled workers to cities.

  • New Deal

    FDR's programs to fight the Great Depression, including Social Security.

    Memory tipGreat Society was LBJ; Square Deal was Theodore Roosevelt.

  • War and the economy

    War spending and production can create jobs, as in World War II.

    Memory tipWWII ended Depression-era unemployment.

Often tested

  • Great Depression: began after the 1929 crash.
  • Read data tables carefully and match the trend to the event.

3 sample questions

Verified practice questions from this unit.

Practice questionReviewedEconomics › Economics in History★★★☆☆

Question 1. President Franklin D. Roosevelt responded to the Great Depression with a set of programs that included Social Security. What were these programs called?

  1. ① The Marshall Plan
  2. ② The New Deal
  3. ③ The Square Deal
  4. ④ The Great Society
▼ Show answer and explanation▲ Hide answer and explanation

Answer: ② The New Deal

Key point: New Deal: FDR's response to the Great Depression

The Great Depression began after the stock market crash of 1929. President Franklin D. Roosevelt's New Deal created jobs programs, banking reforms, and Social Security (1935). It greatly expanded the federal government's role in the economy.

Wrong choices

  • The Marshall Plan: The Marshall Plan was aid to rebuild Europe after World War II.
  • The Square Deal: The Square Deal was President Theodore Roosevelt's program in the early 1900s.
  • The Great Society: The Great Society was President Lyndon B. Johnson's program in the 1960s.
Practice questionReviewedEconomics › Economics in History★★★☆☆

Question 2. During the Industrial Revolution, why did many people move from farms to cities?

  1. ① Factories in cities offered jobs
  2. ② Land in cities was cheaper than farmland
  3. ③ The government banned farming
  4. ④ Cities had less crowding and cleaner air
▼ Show answer and explanation▲ Hide answer and explanation

Answer: ① Factories in cities offered jobs

Key point: Industrial Revolution: factory jobs drew people to cities

During the Industrial Revolution, machines and factories changed how goods were made. Factories were built in cities, and people moved there for work. This is called urbanization. New farm machines also meant fewer workers were needed on farms.

Wrong choices

  • Land in cities was cheaper than farmland: City land was usually more expensive, not cheaper.
  • The government banned farming: Farming was never banned. Machines meant fewer farm workers were needed.
  • Cities had less crowding and cleaner air: Industrial cities were often crowded and polluted.
Practice questionReviewedEconomics › Economics in History★★★☆☆

Question 3. In the 1400s and 1500s, why did European nations send explorers across the oceans?

  1. ① To escape pollution from factories
  2. ② To find places to build factories
  3. ③ To find new trade routes to Asia and gain wealth such as gold and spices
  4. ④ To spread democracy to other continents
▼ Show answer and explanation▲ Hide answer and explanation

Answer: ③ To find new trade routes to Asia and gain wealth such as gold and spices

Key point: Exploration was driven by trade and wealth

European nations wanted faster trade routes to Asia for valuable goods such as spices and silk. They also wanted gold, land, and power, and some wanted to spread Christianity. This search for wealth led to exploration and colonization of the Americas.

Wrong choices

  • To escape pollution from factories: Factories and industrial pollution came centuries later.
  • To find places to build factories: The Industrial Revolution and its factories began in the 1700s.
  • To spread democracy to other continents: European nations at the time were mostly monarchies and were not spreading democracy.
Practice 4 questions from this unit →

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