FTCE SOCIAL SCIENCE 6-12 EXAM SCRIPT
Question and Answer 2026 | Comprehensive
Revision Notes & Answer Key | A+ Verified
• Meridians -✓✓Lines of longitude that measure distances east & west of
another imaginary line called the "Prime Meridian"
• Macroeconomics -✓✓The study of economy as a whole
• Focus of Macroeconomics -✓✓1. National Output (measured by GDP)
2. The Role of Inflation
3. Unemployment
• National Output: GDP -✓✓The total money value of final goods & services that
a country produces over a given period of time (usually 1 year)
• Expenditures Approach -✓✓GDP = C(consumption) + I(investment) + G(gov't
goods) + NX(net exports)
• 4 Phases of Economic Cycle -✓✓1. BOOM (expansion of economy = prosperity)
2. RECESSION (contraction with decline in GDP/rise in unemployment)
3. TROUGH (turning point; slide from mean to lowest point in recession)
4. RECOVERY (rise from trough back to the mean - lessening unemployment &
rising prices)
• 3 Types of Unemployment -✓✓1. FRICTIONAL (workers voluntarily move from
one job to another with time in between)
2. CYCLICAL (economy falls as the result of a recession)
3. FUNCTIONAL (more workers than available jobs; skills not in demand/don't
match industry needs) \
• Fiscal Policy -✓✓1. EXPANSIONARY (raise gov't spending and/or decrease taxes
in order to increase spending)
2. CONTRADICTORY (decreases gov't spending & increase taxes in order to
decrease spending
, • Monetary Policy -✓✓Federal Reserve System (FED) changes level of money in
banking system (influences the availability and cost of both money & credit in the
economy)
• 3 Economic Tools -✓✓1. Open-Market Operations
2. Reserve Requirements
3. Discount Rates
• Open-Market Operations -✓✓Most flexible & often used tool; purpose is to
influence the amount of reserves in the banking system & the system's ability to
extend the credit & create money
• Reserve Ratio -✓✓Purpose is to influence the level of excess reserves in the
banking system
• Discount Rates -✓✓the interest rates that the Fed charges on loans to banks
• Comparative Advantage -✓✓trade should be based on the comparative
opportunity costs between 2 countries
• International Monetary Fund (IMF) -✓✓created to supervise exchange rate
practices of member nations
• World Bank -✓✓loans money to developing nations for economic development
• Balance of Payments -✓✓Exports - Imports + Net Investment Income = Net
Transfers + Current Amounts
• Political Socialization -✓✓The process by which individuals form their political
allegiances (Develops political culture)
• Traditional Analysis -✓✓uses descriptive process & focus on global issues,
international institutions, and the foreign policies of individual nation states
Question and Answer 2026 | Comprehensive
Revision Notes & Answer Key | A+ Verified
• Meridians -✓✓Lines of longitude that measure distances east & west of
another imaginary line called the "Prime Meridian"
• Macroeconomics -✓✓The study of economy as a whole
• Focus of Macroeconomics -✓✓1. National Output (measured by GDP)
2. The Role of Inflation
3. Unemployment
• National Output: GDP -✓✓The total money value of final goods & services that
a country produces over a given period of time (usually 1 year)
• Expenditures Approach -✓✓GDP = C(consumption) + I(investment) + G(gov't
goods) + NX(net exports)
• 4 Phases of Economic Cycle -✓✓1. BOOM (expansion of economy = prosperity)
2. RECESSION (contraction with decline in GDP/rise in unemployment)
3. TROUGH (turning point; slide from mean to lowest point in recession)
4. RECOVERY (rise from trough back to the mean - lessening unemployment &
rising prices)
• 3 Types of Unemployment -✓✓1. FRICTIONAL (workers voluntarily move from
one job to another with time in between)
2. CYCLICAL (economy falls as the result of a recession)
3. FUNCTIONAL (more workers than available jobs; skills not in demand/don't
match industry needs) \
• Fiscal Policy -✓✓1. EXPANSIONARY (raise gov't spending and/or decrease taxes
in order to increase spending)
2. CONTRADICTORY (decreases gov't spending & increase taxes in order to
decrease spending
, • Monetary Policy -✓✓Federal Reserve System (FED) changes level of money in
banking system (influences the availability and cost of both money & credit in the
economy)
• 3 Economic Tools -✓✓1. Open-Market Operations
2. Reserve Requirements
3. Discount Rates
• Open-Market Operations -✓✓Most flexible & often used tool; purpose is to
influence the amount of reserves in the banking system & the system's ability to
extend the credit & create money
• Reserve Ratio -✓✓Purpose is to influence the level of excess reserves in the
banking system
• Discount Rates -✓✓the interest rates that the Fed charges on loans to banks
• Comparative Advantage -✓✓trade should be based on the comparative
opportunity costs between 2 countries
• International Monetary Fund (IMF) -✓✓created to supervise exchange rate
practices of member nations
• World Bank -✓✓loans money to developing nations for economic development
• Balance of Payments -✓✓Exports - Imports + Net Investment Income = Net
Transfers + Current Amounts
• Political Socialization -✓✓The process by which individuals form their political
allegiances (Develops political culture)
• Traditional Analysis -✓✓uses descriptive process & focus on global issues,
international institutions, and the foreign policies of individual nation states
