GED Social Studies Economics in History Summary
Checked 10/27/26
Economics in History: key points
- The New Deal was the response to the Great Depression.
- The Industrial Revolution drew people from farms to factory cities.
- Importance
- ★★★☆☆ (3 / 5)
- Weight
- About 1 of 6 Economics questions (15%)
Economic drivers of exploration, the Industrial Revolution, the Great Depression and the New Deal, and the economic effects of war.
📖 See more Economics in History concepts →Economics in History: 4 sample questions
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 The Marshall Plan
- ② The New Deal
- ③ The Square Deal
- ④ The Great Society
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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.
Question 2. During the Industrial Revolution, why did many people move from farms to cities?
- ① Factories in cities offered jobs
- ② Land in cities was cheaper than farmland
- ③ The government banned farming
- ④ Cities had less crowding and cleaner air
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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.
Question 3. In the 1400s and 1500s, why did European nations send explorers across the oceans?
- ① To escape pollution from factories
- ② To find places to build factories
- ③ To find new trade routes to Asia and gain wealth such as gold and spices
- ④ To spread democracy to other continents
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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.
Question 4. The table shows the approximate U.S. unemployment rate in three years. | Year | Unemployment rate | |---|---| | 1939 | about 17% | | 1941 | about 10% | | 1944 | about 1% | The United States entered World War II in December 1941. Which conclusion is best supported by the table and this information?
- ① Unemployment stayed about the same during the war
- ② Unemployment fell sharply as the country produced goods and troops for the war
- ③ Unemployment rose because of the war
- ④ The war caused the Great Depression
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Answer: ② Unemployment fell sharply as the country produced goods and troops for the war
Key point: WWII production ended Depression-era unemployment
Unemployment fell from about 17% in 1939 to about 1% in 1944. As the U.S. built up for and fought in World War II, factories hired millions of workers and millions more joined the armed forces. War spending is one of the economic impacts of war.
Wrong choices
- Unemployment stayed about the same during the war: A drop from about 17% to about 1% is a very large change.
- Unemployment rose because of the war: The table shows unemployment going down, from about 17% to about 1%.
- The war caused the Great Depression: The Great Depression started in 1929, years before the U.S. entered the war.
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