AP Macroeconomics Unit 1 Study Guide
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| 6041019816 | Scarcity | A resource that is not available in sufficient quantities to satisfy all the various ways a society wants to use it | 0 | |
| 6041031770 | Resources | Anything that can be used to produce something else | 1 | |
| 6041037447 | Four Categories of Resources | Land Labor Capital Entrepreneurship | 2 | |
| 6041040964 | Land | All resources that come from nature | 3 | |
| 6041045270 | Labor | The effect of workers | 4 | |
| 6041046979 | Capital | Manufactured goods used to make other goods and services | 5 | |
| 6041051223 | Entrepreneurship | The efforts of entrepreneurs in organizing resources for production | 6 | |
| 6041112050 | Economics | The study of scarcity and choice | 7 | |
| 6041113837 | Economy | A system for coordinating a society's productive and consumptive activities | 8 | |
| 6041120866 | Incentives | Rewards or punishments that motivate particular choices | 9 | |
| 6041141541 | Positive Economics | Branch of economic analysis that describes the way the economy actually works | 10 | |
| 6041144207 | Normative Economics | Makes prescriptions about the way the economy should work | 11 | |
| 6041152511 | Opportunity Cost | The value of what you must give up when you make a particular choice | 12 | |
| 6041166371 | Wants | Something that people desire to have, that they may, or may not, be able to obtain | 13 | |
| 6041168482 | Needs | Something needed to survive | 14 | |
| 6041175752 | Factors of Production | ... | 15 | |
| 6041177979 | Production Possibility Curves | A graph that describes the maximum amount of one good that can be produced for every possible level of production of the other good |  | 16 |
| 6041182360 | Efficiency PPC | Point A,B,C |  | 17 |
| 6041186027 | Inefficiency PPC | Point D | | 18 |
| 6041213585 | Full Employment PPC | Point A,B,C | | 19 |
| 6041204160 | Law of Increasing Costs | As the factors of production shift from making one good or service to another, the cost of producing the second item increases | 20 | |
| 6041232130 | Inferior Goods | Goods for which demand decreases as income increases | 21 | |
| 6041236588 | Norma Goods | Goods for which demand increases as income increases | 22 | |
| 6041241622 | Exports | Goods produced domestically and sold abroad | 23 | |
| 6041243578 | Inports | Goods produced abroad and sold domestically | 24 | |
| 6041247389 | Absolute Advantage | The ability to produce a good using fewer inputs than another producer | 25 | |
| 6041250705 | Comparative Advantage | The ability of a country to produce a good at a lower opportunity cost than another producer | 26 | |
| 6041266499 | Black Market | System of selling goods and services outside official channels Created in response to shortages | 27 | |
| 6041266500 | Supply Curve |  | 28 | |
| 6041283596 | Change in Demand Determinants | Tastes+preferences Price of relates goods (substitute&complement) Income Expectations Population (# of buyers) | 29 | |
| 6041295760 | Complement | Products that sell better together | 30 | |
| 6041298670 | Substitute | Products that directly compete and can serve as a substitute for one another | 31 | |
| 6041257242 | Demand Curve |  | 32 | |
| 6041308642 | Change in Supply Determinants | Price of inputs Technology Government policy (taxes&subsidies) # of sellers Expectations | 33 | |
| 6041318628 | Equilibrium | Where the supply curve intersects the demand curve |  | 34 |
| 6041324716 | Price Ceiling | A legal maximum on the price at which a good can be sold When price is too high the gov deflates the price | 35 | |
| 6041328764 | Price Floor | A legal minimum on the price at which a good can be sold When price is too low the gov inflates the price | 36 | |
| 6041335577 | Surplus | Qs>Qd |  | 37 |
| 6041364655 | Shortage | Qd 38 | |
