AP Microeconomics Module 1 Flashcards

5409119278	economics	the study of scarcity and choice	0
5409119279	individual choice	decisions by individuals about what to do, which necessarily involve decisions about what not to do	1
5409119280	economy	a system for coordinating a society's productive and consumptive activities	2
5409119281	market economy	decisions of individual producers and consumers largely determine what, how, and for whom to produce, with little government involvement in the decisions	3
5409119282	resource	anything that can be used to produce something else	4
5409119283	land	all resources that come from nature, such as minerals, timber and petroleum	5
5409119284	labor	effort of workers	6
5409119285	capital	manufactured goods used to make other goods and services	7
5409119286	entrepreneurship	the efforts of entrepreneurs in organizing resources for production, taking risks to create new enterprises, and innovating to develop new products and production processes	8
5409119287	scarce	a resource that is not available in sufficient quantities to satisfy all the various ways a society wants to use it	9
5409119288	opportunity cost	real cost of an item; what you must give up in order to get it	10
5409119289	microeconomics	study of how people make decisions and how those decisions interact	11
5409119290	macroeconomics	concerned with the overall ups and downs in the economy	12
5409119291	economic aggregates	economic measures that summarize data across many different markets	13
5409119292	positive economics	the branch of economic analysis that describes the way the economy actually works	14
5409119293	normative economics	makes prescriptions about the way the economy should work	15
5409125920	command economy	decisions are made by a central authority in regards to the production and consumption of goods and industry is a publicly owned entity.	16
5409216058	incentives	rewards or punishments that motivate particular economic choices.	17
5409222908	property rights	establishes ownership and grant individuals the right to trade goods and services with each other.	18
5409266015	marginal analysis	the study of the costs and benefits of doing a little bit more of an activity versus a little bit less.	19