Mock Test – BOP

In which type of economy do prices change based on supply and demand?

• Government economy

• Free market economy

• Mixed economy

• Planned economy

Who decides what goods are made in a planned economy?

• Business owners

• The government

• Consumers

• Shopkeepers

Why do people have to make choices when buying things?

• Because prices are too high

• Because they don’t like shopping

• Because there are limited resources and unlimited wants

• Because shops are far away

What is the main goal of businesses in a free market?

• Helping others

• Making profit

• Making laws

• Protecting nature

What does the PPF (Production Possibility Frontier) show?

• What a factory looks like

• The best way to use resources to make two goods

• Prices in the market

• Jobs available in a city

Which of these is not a factor of production?

• Land

• Labour

• Capital

• Money

Why is scarcity a problem in economics?

• Because people save too much

• Because the resources are limited and wants are unlimited

• Because People love money

• Because people want all good things

What is often missing in a planned economy that can cause poor quality?

• Government support

• Good machines

• Competition

• Workers

A person who wants a job but can’t find one is called:

• Retired

• Lazy

• Unemployed

• Self-employed

The person who starts a business and brings together land, labour, and capital is an:

• Manager

• Leader

• Entrepreneur

• Teacher