20
practice testMultiple Choice

Practice Test

Question 20 • Economics

How does private ownership of factors of production help businesses?

Answer
A
It helps businesses to enjoy profits without growing the business.
B
It helps businesses to invest more in growing the business.
C
It helps businesses to monopolize the market.
D
It helps businesses to promote unfair business practices.

Explanation

When businesses privately own factors of production, such as equipment, buildings, and resources, they can make decisions about how to use them. They can reinvest profits in those resources or in expansion, helping the business grow. This matches choice C; private ownership does not automatically create a monopoly or promote unfair practices.

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