Unit 5 Test Business Decisions

Choice in economically related decisions.

• Economic freedom

• Economic growth 

• Price stability 

When people who want to work can find jobs.

• Economic equity 

• Economic growth

• Full employment

When maximum output is obtained.

• Economic equity

• Efficiency 

• Full employment 

When the output of goods and services increases.

• Economic growth

• Full employment

• Economic security 

A condition of economic fairness.

• Price stability 

• Economic growth 

• Economic equity 

A producer has an _____________ if it can produce the most with available resources.

• Absolute Advantage 

• Comparative Advantage 

• Low Cost

A producer has a _____________ at supplying one thing if it can produce at lower opportunity cost than another producer.

• Absolute advantage 

• Comparative Advantage 

• Low Cost

Identify absolute advantage.

Twinkle Inc. can make 30 lightbulbs or 40 laptops. Star Inc. can make 50 lightbulbs or 25 laptops.

• Twinkle Inc. has an absolute advantage in lightbulbs.

• Star Inc. Has an absolute advantage in laptops

• Twinkle Inc. has an absolute advantage in laptops.

The final value of all goods and services produced within a country in a year.

• Self Sufficient 

• Subsidy

• Gross Domestic Product

A government action based on political rather than economic factors.

• Subsidy 

• Gross Domestic Product 

• Self Sufficient