AP Flashcards

7137327691	economics	branch of knowledge concerned with the production, consumption, and transfer of wealth	0
7137328964	scarcity	the state of being scarce; shortage	1
7137333233	marginal analysis	an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity	2
7137335150	model	a system or thing used as an example to follow or imitate	3
7137336443	price elasticity	is a measure of the responsiveness of demand or supply of a good or service to changes in price	4
7137339030	price discrimination	the action of selling the same product at different prices to different buyers, in order to maximize sales and profits	5
7137340283	perfect competition	the situation prevailing in a market in which buyers and sellers are so numerous and well informed that all elements of monopoly are absent and the market price of a commodity is beyond the control of individual buyers and sellers	6
7137341505	efficiency	the state or quality of being efficient	7
7137342185	equity	the quality of being fair and impartial or the quality of being fair and impartial	8
7137343645	externality	a side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in the cost of the goods or services involved	9
7137345018	positive externality	is a benefit that is enjoyed by a third-party as a result of an economic transaction	10
7137346077	negative externality	is a cost that is suffered by a third party as a result of an economic transaction	11
7137346976	asymmetric information	deals with the study of decisions in transactions where one party has more or better information than the other	12
7137347756	adverse selection	refers to a situation where sellers have information that buyers do not, or vice versa about some aspect of product quality	13
7137348744	moral hazzard	lack of incentive to guard against risk where one is protected from its consequences	14
7137349433	signaling	is the idea that one party credibly conveys some information about itself to another party	15