AP Macro Unit 1 Flashcards
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| 4846225012 | scarcity | the basic economic problem; it is a lack of needed or wanted resources relative to the demand for the resources. | 0 | |
| 4846225013 | TINSTAAFL | acronym for THERE IS NO SUCH THING AS A FREE LUNCH; means that there is always a cost, even if the cost is giving up a different opportunity without a dollar value | 1 | |
| 4846225014 | rational self-interest | individuals pursue actions that will enable them to achieve their greatest satisfaction | 2 | |
| 4846225015 | opportunity cost | the thing you give up when you make any choice- it is the NEXT best option | 3 | |
| 4846225016 | marginal analysis | comparisons of costs and benefits of creating one additional unit- or doing something one more time | 4 | |
| 4846225018 | ceteris paribus | other-things equal assumption; assumes that all other variables except those under immediate consideration are held constant | 5 | |
| 4846225019 | microeconomics | looks at specific economic units such as businesses and consumer behavior | 6 | |
| 4846225020 | macroeconomics | Study of economics at the national level, total output, unemployment, inflation | 7 | |
| 4846225024 | positive economics | states economics by facts,avoiding value judgements | 8 | |
| 4846225025 | normative economics | incorporates value judgements | 9 | |
| 4846225026 | utility | the pleasure, happiness, or satisfaction obtained from consuming a good or service. | 10 | |
| 4846225027 | factors of production | Land, Labor, Capital, and Entrepreneurship | 11 | |
| 4846225032 | command economy (socialism, communism) | system that relies on public ownership of resources and the use of central planning; government makes most economic decisions | 12 | |
| 4846225033 | market economy | private ownership of resources; markets and prices coordinate economic activity; government plays a role in the economy by providing rules, enforcing contracts, providing public goods | 13 | |
| 4846225035 | specialization | an individual, business, or nation chose to produce whatever provides the most utility | 14 | |
| 4846225070 | consumer goods | goods made for direct consumption | 15 | |
| 4846225071 | trade-offs | all possible options | 16 | |
| 4846225074 | PPC shifters | change in resource availability, change in technology or productivity, | 17 | |
| 4846225075 | production possibilities curve | a model showing the trade-offs between two economic choices; illustrates the concept of opportunity cost |  | 18 |
| 4846240728 | Mixed Economy | Market-based economic system with limited government involvement | 19 | |
| 5474661609 | Liquidity | A measure of how quickly an asset can be converted to into another asset (or used to buy hamburgers) | 20 | |
| 5474684964 | Interest rate | The % that a saver is paid OR the cost of borrowing | 21 | |
| 5474879122 | Cash | Most Liquid asset possible | 22 | |
| 5474892959 | CD | Financial asset- a way to save money that pays a better interest rate than savings account, but trades off some liquidity- Saver pays a penalty to get money back earlier | 23 | |
| 5474910254 | Bond | Financial Asset which can be traded or sold- the prices of bonds move in the opposite of interest rates | 24 | |
| 7127628860 | Capital goods | Capital goods are things used to make other goods or services | 25 |