BOP mock test

  What are the basic factors of production in economics?

•      Land, Labor, Money, Marketing

•    Supply, Demand, Price, Quantity

•     Goods, Services, Production, Distribution

•      Land, Labor, Capital, Entrepreneurship

    Which of the following is a characteristic of a planned economy?

•     Private ownership of businesses

•      Government control of resources and production

•       Market-driven prices and competition

•      Limited government intervention

What is the opportunity cost of a decision?

•     The total cost incurred in making the decision

•      The benefits of the chosen option

• The value of the next best alternative foregone

•   The initial investment made for the decision

   In a free market economy, prices are determined by:

• A)      Government regulations

• B)       Supply and demand

• C)       Central planning committee

• D)      Random fluctuations

     What is the primary goal of the private sector?

• A)      Maximizing profits

• B)       Ensuring social welfare

• C)       Achieving economic equality

• D)      Reducing government spending

1.       In a planned economy, what determines what goods and services are produced?

• A)      Consumer preferences and demand

• B)       Government directives and central planning

• C)       Market competition

• D)      International trade agreements

What is the main advantage of a free market economy?

• A)      Economic equality

• B)       Efficient allocation of resources

• C)       Government control

• D)      Reduced individual freedom

Which factor of production refers to the physical and mental effort of people involved in production?

• A)      Land

• B)       Capital

• C)       Labor

• D)      Entrepreneurship

1.       In a mixed market economy, who makes decisions about resource allocation?

• A)      Government and market forces

• B)       Government only

• C)       Market forces only

• D)      Private businesses

      What is the role of entrepreneurs in the economy?

• A)      They provide labour

• B)       They innovate and take risks to create new businesses

• C)       They regulate market prices

• D)      They control government spending