Economic Change Since the 1970s: Work, Policy & Distribution — Practice · Grade 8 Social Studies

Chapter: Recent History, Global Connections & Citizenship

What this practice covers

By the end of Economic Change Since the 1970s: Work, Policy & Distribution you should be able to:

6 questions, written answer, each with a worked explanation.

Vocabulary used: context, corroboration, interpretation, purchasing power, deindustrialization.

Problem 1

Can a pay rise still leave a household worse off?
Answer and explanation

Yes. If prices rise faster or hours fall, purchasing power or total income can decline despite a higher hourly wage.

Problem 2

Why can factory output rise while employment falls?
Answer and explanation

Higher productivity or automation may allow fewer workers to produce more. Employment and output measure different outcomes.

Problem 3

What is needed to test a claimed policy benefit?
Answer and explanation

A defined outcome, baseline, time period, implementation evidence, and comparison with other influences. A slogan or intention is insufficient.

Problem 4

Why compare inflation-adjusted figures over time?
Answer and explanation

They help distinguish changes in purchasing power from changes in dollar amounts. State the adjustment and remaining differences in households or prices.

Problem 5

Illustrative classroom figures: hourly pay rises from $10 to $11 while a price index rises from 100 to 115. Hours and household circumstances are unchanged in the model. Calculate the nominal pay increase and compare it with the price increase. Explain the limit of using a general index for one household.
Answer and explanation

The model suggests purchasing power fell about 4.3% despite a nominal raise. It does not establish every worker’s experience or the cause of inflation; hours, expenses, and the index’s scope must be checked.

Pay rises 10%; the index rises 15%.

Relative purchasing power is 1.10/1.15, about 0.957 of its starting level.

A household’s actual purchases may differ from the index basket.

Response criteria

  • Describe the historical context and institutions accurately.
  • Use relevant evidence and explain how it supports the claim.
  • Represent perspectives without stereotypes or invented testimony.
  • Identify a limitation, counterevidence, or information still needed.

Problem 6

A company raises output and cuts jobs after adding machines. What does this show and what does it not establish?
Answer and explanation

It shows those changes coincided; inspect staffing, hours, demand, investment, and decisions before assigning the whole employment change to automation.

Response criteria

  • Describe the historical context and institutions accurately.
  • Use relevant evidence and explain how it supports the claim.
  • Represent perspectives without stereotypes or invented testimony.
  • Identify a limitation, counterevidence, or information still needed.

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