Free FSOT Exam Braindumps
Foreign Service Officer Test Questions 81–85 (page: 18)

Updated On: 9-Feb-2026
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Which of the following is the least likely to contribute to economic growth?

  1. Technological advances
  2. Labor force education
  3. Increased access to resources
  4. Tighter government regulation

Answer(s): D



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In a capitalist market economy, a primary role of government is to:

  1. Regulate all key industries to insure consumer advantage in pricing and availability
  2. Protect core services not naturally supplied by market forces
  3. Regulate the distribution and use of scarce resources
  4. Monitor foreign competition and limit imports to improve domestic production

Answer(s): B



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In a free enterprise economy, the market forces of supply and demand that determine the pricing of products and commodities are known as:

  1. income effect
  2. capitalism
  3. price mechanism
  4. shortage

Answer(s): C



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When the real Gross Domestic Product (GDP) is declining, that period is referred to as a recession. When that trend stops and economic activity begins to rise again it is known as a:

  1. peak
  2. cycle
  3. trough
  4. gap

Answer(s): C



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The Keynesian theory of economics, practiced in the United States promotes the:

  1. importance of both public and private roles in the economy
  2. value of laissez-faire policies in building a strong economy
  3. ability of natural market forces to self regulate the economy
  4. idea that man has very little control in preventing recession or depression

Answer(s): A



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