Unit 1 AP Economics
Terms : Hide Images
| 4863650642 | The study of the economic behavior of individuals and specific markets. | Microeconomics | 0 | |
| 4863650643 | A statement based on opinion or what should be. | Normative Statement | 1 | |
| 4863650644 | difference in value from the next best option | Opportunity Cost | 2 | |
| 4863650645 | A statement that can be proven or disproven by facts. | Positive Statement | 3 | |
| 4863650646 | households purchase goods and services from firms provide revenue for business | Product Market | 4 | |
| 4863650647 | An economic model used to illustrate limited resources and trade-offs. | Production Possibilities Curve (PPC) | 5 | |
| 4863650648 | The payment for entrepreneurial ability; the revenue from sales minus the cost of resources. | Profit | 6 | |
| 4863650649 | Organizational skills, motivation, and risk taking needed to produce. | Entrepreneurship | 7 | |
| 4863650650 | Any place where consumers and producers meet to exchange. | Market | 8 | |
| 4863650651 | Incremental, one more, or the next one. | Marginal | 9 | |
| 4863650652 | The study of the economic behavior of entire economies. | Macroeconomics | 10 | |
| 4863650653 | Natural resource or material used to produce (may be refined). | Land | 11 | |
| 4863650654 | The physical and mental effort used to produce. | Labor | 12 | |
| 4863650655 | The study of how people make decisions among trade-offs, or- how they use their limited resources to satisfy their unlimited wants. | Economics | 13 | |
| 4863650656 | Organizing production into separate tasks. | Division of Labor | 14 | |
| 4863650658 | All things being constant. | Ceteris Paribus | 15 | |
| 4863650659 | Assuming that because two things are correlated that one caused the other. | Causation Fallacy | 16 | |
| 4863650660 | Equipment and tools used to produce. | Capital | 17 | |
| 4863650661 | Any choice forgone because of a decision. | Trade-Off | 18 | |
| 4863650663 | Focusing effort into one task. | Specialization | 19 | |
| 4863650665 | The idea that products and resources are limited. | Scarcity | 20 | |
| 4863650666 | Inputs needed for production. | Resource (FOP) | 21 | |
| 4863650667 | measure of changes from one unit to the next | Marginal Analysis | 22 | |
| 4863650668 | firms purchase resource from business provide incomes for households | Resource Market | 23 | |
| 4863650669 | the amount of resources dedicated to something | Allocation | 24 | |
| 4863650670 | Circular Flow (picture) -factor market = resource market |  | 25 | |
| 4863650671 | assumption that people make decisions optimally using all information | Rationality Assumption | 26 | |
| 4863650672 | -means of production owned by individual -based on consumer spending -competition -rapid growth/decline | Market Economy | 27 | |
| 4863650673 | -tradition -slow to change -basic wants and needs | Traditional Economy | 28 | |
| 4863650674 | -gov't controls production -production based on plans/quota -usually military or capital -people work for good of nation | Command Economy | 29 | |
| 4863650675 | goods that are ultimately consumed (not part of the production of a good) | Consumption Goods | 30 | |
| 4863650676 | economy equal for all parties, even it that hurts part of pop. a little | Socialism | 31 | |
| 4863650677 | utility gained from consuming the next unit | Marginal Utility | 32 | |
| 4863650680 | rewards that changes behavior | Incentives | 33 | |
| 4863650681 | people act to make themselves better | Self-Intrest | 34 | |
| 4863650682 | -benefits gained from something -utils | Utility | 35 | |
| 4863650683 | products that satisfy wants indirectly | Capital Goods | 36 | |
| 4863650684 | production of good/service most wanted by society MB=MC | Allocative Efficiency | 37 | |
| 4863650685 | total satisfaction gained from consuming multiple items | Total Utility | 38 | |
| 4863650687 | having to give up one product to produce 1 more unit of the other | Law if Increasing Opportunity Costs | 39 | |
| 4863650689 | training/education of workers to increase productivity | Human Capital | 40 | |
| 4863650690 | money used to buy physical capital | Financial Capital | 41 | |
| 4863650691 | Land Labor Capital Entrepreneur | 4 Factors of Production | 42 | |
| 4863650692 | letting things that their own course without interference | laissez-faire | 43 | |
| 4863650693 | shows all possible combos of total outputs that can be made | Production Possibility Curve | 44 | |
| 4863650694 | satisfaction a consumer gets from purchasing one more unit; will lessen with each additional unit bought consume while MU>/=MC | Law of Diminishing Marginal Utility | 45 | |
| 4863650695 | Why is the PPC bowed outwards? | Resources are scarce so you cannot always produce items on a one to one scale | 46 | |
| 4863650696 | Economic Growth (ways to push the PPC out) | -increase in resources -increase in workforce -tech innovations | 47 | |
| 4863650698 | idea that decisions should be made on what maximizes utility fir largest # of people | Utilitarianism | 48 |
