AP Microeconomics: Chapter 1

40584320	Scarcity	the limited nature of society's resources.
40584321	Economics	the study of how society manages its scarce resources.
40584322	Efficiency	the property of society getting the most it can from its scarce resources.
40584323	Equity	the property of distribution economic prosperity fairly among the members of society.
40584324	Opportunity Cost	whatever must be given up to obtain some item.
40584325	Rational People	people who systematically and purposefully do the best they can to achieve their objectives.
40584326	Marginal changes	small incremental adjustments to a plan of action.
40584327	Incentives	something that induces a person to act.
40584328	Market Economy	an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services.
40584329	Property rights	the ability of an individual to own and exercise control over scarce resources.
40584330	Market failure	a situation in which a market left on its own fails to allocate resources efficiently.
40584331	Externality	the impact of one person's actions on the well being of a bystander.
40584332	Market power	the ability of a single economic actor (or small group of actors) to have a substantial influence on market price.
40584333	Productivity	the quantity of goods and services produced from each hour of a worker's time.
40584334	Inflation	an increase in the overall level of prices in the economy.
40584335	Business cycle	fluctuations in economic activity, such as employment and production.