AP Micro: UNIT 1 Flashcards

9602352636	Scarcity	unlimited wants coupled with limited resources	0
9602352637	Microeconomics	study of how individual people make choices and the effect of those choices	1
9602355584	Macroeconomics	study of the overall ups and downs in a whole economy	2
9602355585	Positive Economics	economic analysis that describes how the economy actually works	3
9602355586	Normative Economics	economic analysis that describes how the economy should work	4
9602361214	Marginal analysis	the study of additional costs and benefits	5
9602364421	Opportunity Cost	next best alternative	6
9602364422	Trade-offs	all of the options available when making a choice	7
9602367475	Factors of production	Land, Labor, capital, entrepreneurs	8
9602371739	Free Market Economy	economic systems where individuals decide what to produce, how to produce, and who gets it	9
9602371740	Centrally Planned Economy	economic system in which industries are publicly owned	10
9602375506	Production Possibilities	economic model that shows illustrates the trade-offs faced by an economy producing two goods	11
9602377695	Productive Efficiency	producing at the lowest cost	12
9602377696	Allocative Efficiency	producing what society wants	13
9602385634	Underutilization	not using all available resources	14
9602388561	Unattainable	unable to produce goods and services given the current amount of resources	15
9602392497	Law of Increasing opportunity costs	the increasing cost as one tries to attain more and more of one good	16
9602392498	Capital goods	goods created to make consumer goods	17
9602395263	Consumer goods	goods created for immediate consumption	18
9602395264	Absolute advantage	producing the most of a good or service given available resources	19
9602398333	Comparative advantage	producing a good or service at a lower opportunity cost	20
9602398334	Product Market	market in which goods and services are exchanged	21
9602401627	Factor Market	market in which factors of production are exchanged	22
9602403521	Private sector	part of the economy that is run by individuals and businesses	23
9602403522	Public sector	part of the economy that is controlled by the government	24
9602428232	Incentives	rewards or punishments that motivate choices	25
9602571866	Specialization	focusing efforts of a few tasks	26
9602577555	Gains from Trade	getting more through trade than by being self-sufficient	27
9602668955	Utility	satisfaction	28
9602674908	Allocate	to distribute	29
9602677034	Price	amount consumers pay	30
9602681480	Cost	amount seller pays to produce a good or service	31
9602686406	Investment	the money spent by businesses to improve production	32
9602932705	Explicit Costs	out of pocket costs of decision making	33
9602935079	Implicit Costs	the opportunity costs of decision making	34
9602942573	Accounting Profit	profit minus explicit costs	35
9602945486	Economic Profit	profit minus explicit and implicit costs	36
9603040354	Microeconomics	study of individual choices and actions	37
9603052237	Market	economic system controlled by individuals	38