How do I determine that the electronics are working with the test firmware? You may want to use this code to test all the electronics before
  installing any of the suggested firmwares.



From Final Step in the RAMPS 1.4 Wiki


There's a bunch of code in the sketch, and it looks to me like it just makes a component run, or heat up, for a little but and then move on to the next component, and do the same thing is that about right?  

Well if I'm testing this out and my printer is already for the most part assembled; should I set the stepper jumpers to something larger like a full turn, or half step, so I can see the motors move?  Because I've also read that if you're going to test things out you shouldn't even be hooking up but one of the stepper drivers in case you burn one out!
Running this kind of test isn't really necessary; it provides a nice test to see if everything is working but so does uploading actual firmware (and this isn't any safer than traditional firmware, at that).

It looks like it runs the steppers in one direction for 5 seconds and then in reverse for 5, which should be more than enough to see them move even with 1/32 stepping (it moves them at 1 step/ms, which would come out to 3/4ths of a turn with 1/200 steppers and 1/32 microstepping).

It isn't necessary to remove any code that isn't used. It does no harm.