Social Science (087) — AI-generated practice question

Lesson 1: An industrial economy based on mass production needs mass consumption, which requires stable, high incomes. Stable incomes depend on full employment. Since markets alone cannot guarantee this, governments must intervene to control fluctuations in price, output, and employment.

Lesson 2: Full employment also requires governments to control flows of goods, capital, and labour across borders to protect the domestic economy from external shocks.

In practice: The Bretton Woods Conference (1944) created the IMF to manage external surpluses and deficits of member nations, and the World Bank to finance post-war reconstruction, together preserving economic stability and full employment in the industrial world.

Source: Chapter 3, Section 4.1 – Post-war Settlement and the Bretton Woods Institutions

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• The examiner expects both lessons clearly stated — this is the core of a 3-mark answer.
• Briefly linking each lesson to the institution it inspired (IMF/World Bank) shows understanding of "put into practice."
• Avoid writing long paragraphs; two short points + one linking sentence is ideal for 3 marks.
• Keywords to include: mass consumption, full employment, government intervention, control of flows, IMF, World Bank.