AP Bootcamp Flashcards

5902493077	Scarcity	Everything is scarce, all resources are limited.	0
5902493078	Choices	Selecting from available alternatives.	1
5902494895	Macroeconomics	Choices that individual and business.	2
5902494896	Goods and Services	The objects and actions that satisfy wants.	3
5902496469	Self Interest	what is best for each individual.	4
5902496470	Social Interest	What is best for society as a whole.	5
5902496471	Globalization	The expansion of international trade.	6
5902499514	Tradeoff	Giving up one thing to get another.	7
5902499515	Opportunity Cost	What is given up when a trade off decision is made.	8
5902499516	Benefit	The gain of a decision measured by willingness	9
5902503859	Rational Choice	The best use of resources for achieving goals.	10
5902503860	Margin	Comparing choices for next decisions with benefits.	11
5902503861	Marginal Cost	The opportunity cost of the next unit.	12
5902505538	Marginal Benefit	The benefit of the next unit.	13
5902505539	Incentive	The reward or penalty of an action or decision.	14
5902505540	Economic Model	Economic description of changes in economic facts.	15
5902507983	Normative Statements	Statements of opinions and value.	16
5902507984	Positive Statement	Statements of facts that can be tested.	17
5902510252	What is Economics?	The social science of choices made by societies facing unlimited and repeated wants with limited and scarce resources.	18
5902515039	What is the economic way of thinking?	Economists analyze choices, trade offs, benefits, and incentives, as well as government policies.	19
5902515040	Capital Goods	Materials used by businesses to create productive resources for future goods and services.	20
5902518213	Consumption Goods and Services	Items that individuals and governments use up in the immediate time frame.	21
5902530210	Advanced Economies	Wealthiest 29 countries.	22
5902530211	Emerging Markets	28 Central, Eastern European, and Asian countries.	23
5902532102	Developing Markets	119 Asian, African, and other region's countries.	24
5902539479	BRICS	Brazil, Russia, India, China, South Africa.	25
5902545715	PIGS	Portugal, Ireland, Greece, Spain	26
6009182332	Factors of Production	Land, labor, capital, and entrepreneurship	27
6009184517	Land	Any resource from nature	28
6009186295	Labor	Human effort to produce goods and services	29
6009188389	Human Capital	Knowledge and skills possessed by people	30
6009189919	Capital	Tools, instruments, machines, buildings, etc.	31
6009192885	Financial Capital	money, stocks, bonds for financial resources	32
6009195642	Entrepreneurship	Human resource that organizes businesses	33
6009198195	Rent	Income paid for the use of land	34
6009198237	Wages	Income paid for the use of labor	35
6009200617	Interest	Income paid for the use of capital	36
6009202319	Profit (or loss)	Income earned by entrepreneurs	37
6009204122	Households	Individuals who own the factors of production	38
6009207334	Firms	Institutions that organize production	39
6009209122	Market	An arrangement where buyers meet sellers	40
6009213447	Goods market	Buying and selling goods and services	41
6009215490	Factor market	Buying and selling services of factors of production	42
6009236699	Leakage	Funds diverted from the economic circular flow. I.E. taxes, savings, imports, etc.	43
6009242621	Injection	Funds diverted into the economic circular flow. I.E. government spending, transfer payments, exports, etc.	44
6193380818	Demand	Relationship between the quantity demanded and the price	45
6193405118	Supply	Relationship between the quantity supplied and the price	46
6193413363	Price and Quantity	Where the demand and supply curves intersect	47
6193419698	Markets	Goods, services, resources, inputs, money, virtual, space	48
6193431220	Quantity demanded	The amount willing and able to buy at a specified price	49
6193439967	Law of Demand	Price rises, the quantity demanded decreases; price falls, the quantity demanded increases	50
6193455087	Demand	The relationship between quantity demanded and price	51
6193464416	Demand schedule	A list of quantities demanded at various prices	52
6193474516	Demand curve	A graph showing quantity demanded at various prices	53
6193486060	Market demand	Sum of demands from all buyers in the market	54
6193491885	Changes in demand	The movement of the demand curve due to changes in any factor other than the price	55
6193509355	Substitute (in demand)	A good consumed instead of another good	56
6193517276	Complement (in demand)	A good consumed with another good	57
6193523081	Normal good	Demand for the good increases as income increases	58
6193538820	Inferior good	Demand for the good decreases as income increases	59
6193553306	Change in quantity demanded	Changes in purchases due to price changes	60
6193561450	Quantity supplied	The amount willing and able to supply at a specified price	61
6193571677	Law of Supply	Price rises, the quantity supplied increases; price falls, the quantity supplied decreases	62
6193585982	Supply	The relationship between quantity of supply and price	63
6193592236	Supply schedule	A list of quantities supplied at different prices	64
6193601844	Supply curve	A graph showing quantity supplied at various prices	65
6193611455	Market supply	The sum of supplies from all sellers in the market	66
6193618974	Changes in supply	The movement of the supply curve due to changes in any factor other than price	67
6193632739	Substitute (in supply)	A good produced in place of another	68
6193641018	Complement (in supply)	A good produced along with another good	69
6193648934	Change in quantity supplied	A change in quantity suppliers are willing to supply at different market prices	70
6193665697	Market equilibrium	Where quantity demand and quantity supplied meet	71
6193671777	Equilibrium Price	Quantity demanded equals quantity supplied (y-axis)	72
6193685524	Equilibrium Quantity	Quantity demanded equals quantity supplied (x-axis)	73
6193691228	Surplus	Quantity supplied exceeds quantity demanded	74
6193699254	Shortage	Quantity demanded exceeds quantity supplied	75
6193715086	Elasticity	A measure of how much one economic variable responds to changes in another economic variable.	76
6193720521	Perfectly Elastic	Demand curve is horizontal; The price stays the same no matter the quantity supplied	77
6193724207	Perfectly Inelastic	Demand curve is vertical and elasticity is zero, if price changes, there is no change in demand	78
6318446734	Working Age Population	Total people over 16; not in jail, hospitals or some other institution, not in the Armed Forces	79
6318452003	Labor Force	Number of people employed plus the unemployed	80
6318454286	Umemployed	People without employment who are seeking employment and are available for employment	81
6318459645	Unemployment Rate	Number of unemployed workers divided by the labor force (as a percentage)	82
6318474515	Labor Force Participation Rate	Percentage of the working age population who are in the labor force	83
6318480211	Part-time worker	Those who work less than 35 hours a week	84
6318482615	Frictional Unemployment	Unemployment from normal labor market turnover	85
6318489366	Structural Unemployment	Unemployment from mismatches between the needs of employers and the skills and talents of workers	86
6318501952	Cyclical Unemployment	Unemployment from changes in the business cycle	87
6318503778	Full employment	Employment when there is no cyclical unemployment	88
6318505886	Natural unemployment rate	The unemployment rate when no cyclical unemployment is present	89
6318509137	Potential GDP	GDP produced when the economy is at full employment	90
6318512865	Output Gap	Real GDP minus potential GDP; negative in recessions, positive in expansions	91
6318518964	Consumer Price Index (CPI)	Measures average prices paid by urban consumers for a fixed market basket of consumption goods and services; the CPI equals the cost of the basket at current prices divided by cost of the basket in the base year (as a percentage)	92
6318524529	Base Period / Base Year	The period used as the point of comparison for later values of the CPI; the CPI in the base period equals 100. (In many federal references this is the time from 1982 to 1984)	93
6318526831	CPI Market Basket	Goods and services whose prices are used for the CPI	94
6318615056	Inflation Rate	CPI in current year minus CPI in previous year divided by CPI in previous year (as a percentage)	95
6318623012	Deflation	The price level is falling and inflation is negative	96
6318631339	Cost of Living Index	Money people need to spend for a standard of living	97
6318635858	GDP Price Index	An average of the current prices of all goods and services included in GDP expressed as a percentage of the base-year period	98
6318647364	Nominal Wage Rate	Average hourly wage in current dollars	99
6318663288	Real Wage Rate	Average hourly wage rate in dollars of a given base year; it equals the nominal wage rate divided by the CPI (as a percentage)	100
6318683840	Nominal Interest Rate	Interest rate in terms of dollars	101
6318686022	Real Interest Rate	Interest rate in terms of goods and services; it equals the nominal interest rate minus the inflation rate	102
6318696704	Natural Unemployment Rate	Unemployment rate when unemployment is only frictional, structural, seasonal (no cyclical unemployment; the result of job search and job rationing)	103
6318704933	Job Search	Looking for an acceptable job	104
6318706488	Job Rationing	When real wage rate is above the full employment level so there is a surplus of labor	105
6318723395	Efficiency Wage	A real wage rate above the equilibrium wage rate to encourage greater effort by the workers	106
6318734871	Minimum Wage	The lowest wage for which labor can legally be hired	107
6318736725	Union Wage	A wage set by collective bargaining between a firm and a union	108