FSOT: 500 Test Prep Study Questions - Question List

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81. The Massachusetts state legislature banned any Massachusetts company or individual from trading with Burma. In terms of legality, this action is

82. Economic globalization, or the increased geographic dispersion of production across borders, has had which of the following impacts?

Enabled the world's 20 poorest countries to catch up economically with middle- and high-income countries
Increased global transportation and communication costs
Diminished the ability of states to ""go it alone"" in defense production
Increased the economic benefits of military conquest among the most economically advanced countries

83. Which best defines laissez-faire capitalism?

Business activity and natural resource usage and distribution are not regulated by the government
Government controlled distribution of natural resources with little involvement in other sectors of the economy
Ownership of the means of productions is split between public and private entities
Existence of extensive legislation governing internal trade

84. A statement from Exxon-Mobile that their third quarter profits were down 15% from last year is an example of:

85. Which of the following defines the opportunity cost of production?

Using a resource in one capacity in production eliminates the ability to use it in another
Loss of potential profit in order to capture a larger market share
Streamlining production costs to maximize profit
Increasing overhead costs in order to expand production