AP Econ Flashcards

8557063009	Scarcity	Limited resources and unlimited wants	0
8557063010	Trade-off	Giving up one thing for another	1
8557063011	Opportunity Cost	whatever must be given up to obtain some item; next best option	2
8557063012	Factors of Production	Land (natural resources), Labor (work done to produce goods/services), Capital (tools/machinery), Entrepreneurship (someone who combines all factors to make a profit)	3
8557063013	Constant Opportunity Cost	Resources are easily adaptable for producing either good (straight line)	4
8557063014	Increasing Opportunity Cost	One factor increasing while the other decreases (bowed)	5
8557063015	Absolute Advantage	the ability to produce a specific product more efficiently than any other nation (the best)	6
8557063016	Comparative Advantage	the ability to produce a good at a lower opportunity cost than another producer (not so bad at)	7
8557063017	Economics	the study of how society manages its scarce resources	8
8557063018	Efficiency	the property of society getting the most it can from its scarce resources	9
8557063019	Equality	the property of distributing economic prosperity uniformly among the members of society	10
8557063020	Rational People	systematically and purposefully do the best they can to achieve their objectives	11
8557063021	Marginal Change	a small incremental adjustment to a plan of action	12
8557063022	Circular Flow Diagram	a visual model of the economy that shows how dollars flow through markets among households and firms	13
8557063023	Production Possibilities Frontier (PPF)	Graph that shows the combinations of outputs an economy can produce given the available factors of production and the available production technology	14
8668714731	Another term for marginal	Additional	15
8668714732	Input problem	Other goes under	16
8668714733	Output problems	Other goes over	17