Ap Economics Semester 1 Flashcards

304134635	Economics	the branch of social science that deals with the production and distribution and consumption of goods and services	0
304134636	Scarcity	When there are not enough resources for demand	1
304134637	Equity vs efficiency	efficiency goes up = equity goes down	2
304134638	Opportunity cost	What is sacrificed to get what you want	3
304134639	Terms of trade	range of trade in which a trade can be made that makes both parties better off	4
304134640	Feasible	cannot be done efficiently	5
304134641	Factors of production	land, labor, capital, and entrepreneurship	6
304134642	Marginal analysis	comparison of pros and cons	7
304134643	Specialization	lowers opportunity cost but increases need for trade	8
304134644	Law of demand	higher price = lower quantity demanded	9
304134645	Law of supply	lower price = higher supply demanded	10
304134646	Comparative advantage	when opportunity cost is less for "a" than "b"	11
304134647	Absolute advantage	Maximum productivity exceeds other producer	12
304134648	Demand determinants	Taste, income, # of consumers, price of related goods/services, expectations	13
304134649	Supply Determinants	Price of related goods/ services, input prices, government policies, expectations, and # of producers.	14
304134650	Price floors	Minimum price sellers are allowed to charge for a good	15
304134651	Price ceiling	maximum price buyers are required to pay for a good.	16
304134652	Shift of curve	Shift (right or left) of demand or supply curve due to a change in determinants	17
304134653	Movement along the curve	change in quantity demanded or supplied at a specific price	18
304134654	Barter	trade without monetary involvement	19
304134655	Market	place where buyers/ sellers can exchange goods or services	20
304134656	Demand	ability and willingness to buy	21
304134657	Price floor effects	creates surplus; good for suppliers, bad for consumers	22
304134658	Price ceiling effects	creates shortage; bad for suppliers but good for consumers	23
304134659	Equilibrium price	when quantity supplied= quantity demanded	24
304134660	Equilibrium quantity	quantity bought and sold at that price	25
304134661	Substitutes	for demand, when price B increases the quantity demand of A increases. When the price B increase for supply, supply decreases	26
304134662	Compliments	demand; price of B increases, demand of A decreases Supply; price of B increases, supply for A increases	27
304134663	Fiscal policy	uses changes in government spending and taxation to affect overall spending	28
304134664	Self-regulating	economy fixes and thrives without government interference	29
304134665	Keynesian	economy can be fixed through government intervention	30
304134666	Aggregate output	total output	31
304134667	Recession	period of at least 6, consecutive months where output fails	32
304134668	Stabilization policy	policy effort undertaken to reduce severity of a recession	33
304134669	Long run economic growth	sustained upward trend in economic growth.	34
304134670	Inflation	a rise in total price level	35
304134671	Deflation	a drop in total price level	36
304134672	Trade deficits	import more than export	37
304134673	Open economy	economy that trades with other nations	38
304134674	Trade surplus	when the value at which other nations import goods is more than the value that they export to the U.S	39
304134675	gross domestic product	the market value of all final goods produced in a year	40
304134676	GDP	C + Ig + G + Nx	41
304134677	Consumption	includes all spending by the household	42
304134678	Investments	Buying of capital goods, all final products of machinery, equipment, and tools	43
304134679	Government spending	social capital	44
304134680	Net exports	the exports minus the imports	45
304134681	Inventories	stocks of goods and raw materials that firms hold to facilitate their operations	46
304134682	Government transfers	payments from the government to individual with no g/s in return	47
304134683	Income	Measure of GDP	48
304134684	Real	adjusted for inflation	49
304134685	consumer price index	shows the cost of all purchases by a typical family ove	50
304134686	Price index in a given year	basket cost of year two / basket cost of year 1 X 100	51
304134687	Inflation rate	annual percentage in an official price index (index year 2 - index year 2 / year 1) X 100	52
304134688	Employment	# of people currently employed, full or part time	53
304134689	Unemployment	# of people actively looking for work but aren't employed	54
304134690	Labor force	employed + unemployed	55
304134691	Labor force participation rate	(labor force / pop. Age 16 and older) X 100	56
304134692	Unemployment rate	(# of unemployed workers/ labor force) X 100	57
304134693	Discouraged workers	are not actively searching for a job and unemployed	58
304134694	Marginally attached workers	would like a job but not searching	59
304134695	Underemployed	# of people who want full time but are stuck working part time	60
304134696	Fungible	job is not secure	61
304134697	NNP	GDP without depreciation	62
304134698	NI	GDP without business taxes	63
304134699	PI	NI with transfer payments	64
304134700	DI	Disposable income	65
304134701	Disposable income	income + transfers - taxes	66
304134702	Frictional unemployment	quit because of schooling or in between jobs by choice	67
304134703	Structural unemployment	do not meet qualifications or computer replaced you	68
304134704	Cyclical unemployment	Cut backs due to economic hardships	69