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FSOT Economics Review Exam Questions
With 100% Correct Answers 2025
Which best defines laissez-faire capitalism?
a. Business activity and natural resource usage and distribution are not regulated by the
government
b. Government controlled distribution of natural resources with little involvement in other
sectors of the economy
c. Ownership of the means of productions is split between public and private entities
d. Existence of extensive legislation governing internal trade - Answer✔a. Business activity and
natural resource usage and distribution are not regulated by the government
A statement from Exxon-Mobile that their third quarter profits were down 15% from last year is
an example of:
a. Normative economics
b. Positive economics
c. Macroeconomics
d. Differentiated economics - Answer✔b. Positive economics
Which of the following defines the opportunity cost of production?
a. Using a resource in one capacity in production eliminates the ability to use it in another
b. Loss of potential profit in order to capture a larger market share
c. Streamlining production costs to maximize profit
1|Page
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d. Increasing overhead costs in order to expand production - Answer✔a. Using a resource in one
capacity in production eliminates the ability to use it in another
Which best describes the economy of the United Kingdom of Great Britain?
a. Traditional economy
b. Command economy
c. Market economy
d. Mixed economy - Answer✔d. Mixed economy
Economist and philosopher Adam Smith's expression, "the invisible hand" refers to a theory or
belief that:
a. the greed of capitalists seeking wealth actually helps the poor in society
b. the world economy is governed by a series of natural laws
c. outside forces beyond human control influence the economy
d. governments should not impose economic regulation - Answer✔a. the greed of capitalists
seeking wealth actually helps the poor in society
Which best describes the calculation of GNP or Gross National Product?
a. The total value of goods and services produced domestically, plus income earned by citizens
outside the country, less foreigner's income from domestic production
b. The total value of goods and services produced domestically by all workers
c. The total value of goods and services produced domestically less production costs except
wages paid
d. The total value of goods and services produced domestically, less income from foreign
workers producing domestically, less the total value of goods consumed domestically -
Answer✔a. The total value of goods and services produced domestically, plus income earned by
citizens outside the country, less foreigner's income from domestic production
In the United States changes in the money supply are controlled by:
a. the U.S. Treasury Department
b. the Federal Reserve Bank
2|Page
FSOT Economics Review Exam Questions
With 100% Correct Answers 2025
Which best defines laissez-faire capitalism?
a. Business activity and natural resource usage and distribution are not regulated by the
government
b. Government controlled distribution of natural resources with little involvement in other
sectors of the economy
c. Ownership of the means of productions is split between public and private entities
d. Existence of extensive legislation governing internal trade - Answer✔a. Business activity and
natural resource usage and distribution are not regulated by the government
A statement from Exxon-Mobile that their third quarter profits were down 15% from last year is
an example of:
a. Normative economics
b. Positive economics
c. Macroeconomics
d. Differentiated economics - Answer✔b. Positive economics
Which of the following defines the opportunity cost of production?
a. Using a resource in one capacity in production eliminates the ability to use it in another
b. Loss of potential profit in order to capture a larger market share
c. Streamlining production costs to maximize profit
1|Page
, ©BRAINBARTER 2024/2025 ALL RIGHTS RESERVED.
d. Increasing overhead costs in order to expand production - Answer✔a. Using a resource in one
capacity in production eliminates the ability to use it in another
Which best describes the economy of the United Kingdom of Great Britain?
a. Traditional economy
b. Command economy
c. Market economy
d. Mixed economy - Answer✔d. Mixed economy
Economist and philosopher Adam Smith's expression, "the invisible hand" refers to a theory or
belief that:
a. the greed of capitalists seeking wealth actually helps the poor in society
b. the world economy is governed by a series of natural laws
c. outside forces beyond human control influence the economy
d. governments should not impose economic regulation - Answer✔a. the greed of capitalists
seeking wealth actually helps the poor in society
Which best describes the calculation of GNP or Gross National Product?
a. The total value of goods and services produced domestically, plus income earned by citizens
outside the country, less foreigner's income from domestic production
b. The total value of goods and services produced domestically by all workers
c. The total value of goods and services produced domestically less production costs except
wages paid
d. The total value of goods and services produced domestically, less income from foreign
workers producing domestically, less the total value of goods consumed domestically -
Answer✔a. The total value of goods and services produced domestically, plus income earned by
citizens outside the country, less foreigner's income from domestic production
In the United States changes in the money supply are controlled by:
a. the U.S. Treasury Department
b. the Federal Reserve Bank
2|Page
