PLACE Practice Test Answers

1:B Economics is the study of how goods and services are produced and distributed. Anthropologists and historians are also concerned with economic issues, but such issues are not necessarily the focal point of their studies. Psychologists focus on the mental activity and behavioral patterns of individuals within a society.

2:C The effort to reunify the country and restore functioning state governments in the South after the Civil War came to an end with the withdrawal of federal troops from South Carolina, Louisiana, and Florida in 1877.

3:B Lower interest rates encourage banks to lend more money, which generally leads to an increase in consumer spending. Lower interest rates tend to raise, not lower, prices. International trade is not regulated by the Federal Reserve Board. A fear of inflation generally results in the raising of interest rates.

4:B Shared, or concurrent, powers are those powers held by both the states and the federal government. These include taxation, borrowing money, establishing courts, and making and enforcing laws. Implied powers are those assumed by the federal government based on the “elastic clause” in Article I of the Constitution. Expressed, or enumerated, powers are those specifically granted to the federal government in Article I, Section 8 of the Constitutions e.g., the right to coin money, declare war, and regulate interstate and foreign commerce. Reserved powers are reserved exclusively to the states.

5:A In 1985, Mikhail Gorbachev’s programs of glasnost, or openness, and perestroika, or economic restructuring, led to an increase in free speech and free enterprise throughout the Soviet Union. By 1991, these reforms had led to the collapse of Communist power in Russia and the dissolution of the Soviet Union. Russia and the other newly independent states that comprised the former Soviet Union suffered great economic hardship following the breakup. With the collapse of the Soviet Union as a world power, the Cold War that began after World War II came to an end. The Berlin Wall, which began construction in 1961, began to be torn down in 1989.

PLACE Practice Test Questions