AP Microeconomics- Acronyms Flashcards
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| 5729401848 | average fixed cost | AFC (fixed costs divided by the quantity) | 0 | |
| 5729401849 | average revenue | AR (revenue divided by the quantity) | 1 | |
| 5729401850 | average total cost | ATC (total costs divided by the quantity) | 2 | |
| 5729401851 | average variable cost | AVC (variable costs divided by the quantity) | 3 | |
| 5729401852 | change | a triangle | 4 | |
| 5729401853 | consumer price index | CPI (the price of a fixed collection of goods and services each year compared to a base year) | 5 | |
| 5729401854 | consumer surplus | CS (difference between what a consumer would pay, say $16, and what he does pay, say $10; the CS= $6) | 6 | |
| 5729401855 | deadweight loss | DWL (the loss in an economy due to inefficiency; market equilibrium (Me) is not being achieved) | 7 | |
| 5729401856 | decrease | down arrow | 8 | |
| 5729401857 | demand | D (describes the behavior of consumers in the market) | 9 | |
| 5729401858 | elasticity | E (a measure of how sensitive one variable is to another) | 10 | |
| 5729401859 | equilibrium price | Pe (when supply (S) and demand (D) intersect and create market equilibrium (Me), the Ep is the price (P) that exists at that time) | 11 | |
| 5729401860 | equilibrium quantity | Qe (when supply (S) and demand (D) intersect and create market equilibrium (Me), the Eq is the quantity (Q) that exists at that time) | 12 | |
| 5729401861 | equilibrium wage | We (the wage for workers that equates demand and supply; the wage that produces neither an excess supply of workers nor an excess demand of workers in the labor market) | 13 | |
| 5729401862 | fixed costs | FC (a firm's costs that cannot be changed in the short-run, like rent) | 14 | |
| 5729401863 | gross domestic product | GDP (the value of a country's overall output of goods and services during a specific period of time. GDP includes all newly made goods, such as cars, trucks, houses, etc.; it also includes services, such as education, health-care, and government) | 15 | |
| 5729401864 | income elasticity of demand | YED (the quantity (Q) consumers are willing to buy because of a change in their income) YED = the % change in quantity demanded (Qd) divided by the % change in income | 16 | |
| 5729401865 | increase | up arrow | 17 | |
| 5729401866 | long-run average total cost | LRATC | 18 | |
| 5729401867 | market equilibrium | Me (when the market price (P) equals the equilibrium price (Pe) and the quantity (Q) bought and sold equals the equilibrium quantity (Qe) | 19 | |
| 5729401868 | marginal benefit | MB (the increase in benefit from, or the willingness to pay for, one more unit of a good) | 20 | |
| 5729401869 | marginal cost | MC (the increase in total costs (TC) associated with an additional unit of production) | 21 | |
| 5729401870 | marginal social benefit | MSB (the true benefit to society) | 22 | |
| 5729401871 | marginal social cost | MSC (the buyer's cost with externality costs factored in; the sum of the firm's marginal private cost and the increase in external costs to society as more is produced) | 23 | |
| 5729401872 | marginal private benefit | MPB (the marginal benefit (MB) as perceived by the consumer) | 24 | |
| 5729401873 | marginal private cost | MCP (the seller's cost with no externality costs factored in) | 25 | |
| 5729401874 | marginal product of labor | MPL (the increase in production that comes from an additional unit of labor, either hours or workers) | 26 | |
| 5729401875 | marginal revenue | MR (the extra revenue (R) that results from producing and selling one more unit of output) | 27 | |
| 5729401876 | marginal revenue cost | MRC (the cost to increase your labor force to produce one more unit) | 28 | |
| 5729401877 | marginal revenue product of labor | MRPL (the amount of revenue gained from adding more labor) | 29 | |
| 5729401878 | percentage | % | 30 | |
| 5729401879 | price | P (the cost of an item purchased) | 31 | |
| 5729401880 | price elasticity of demand | PED (a measure of the sensitivity of the quantity demanded (Qd) of a good to the price (P) of the good) PED = the % change in quantity demanded (Qd) divided by the % change in price (P) | 32 | |
| 5729401881 | price elasticity of supply | PES (a measure of the sensitivity of the quantity supplied (Qs) of a good to the price (P) of the good) PES = the % change in quantity supplied (Qs) divided by the % change in price (P) | 33 | |
| 5729401882 | producer surplus | PS (the difference between the price (P) and the marginal cost (MC) of every unit sold) | 34 | |
| 5729401883 | variable costs | VC (a firm's costs that can be changed in the short-run, like the number or hours of workers) | 35 | |
| 5729401884 | quantity | Q (amount) | 36 | |
| 5729401885 | quantity demanded | Qd (the quantity (Q) of a product a consumer wants depending on the price (P) | 37 | |
| 5729401886 | quantity supplied | Qs (how much firms/producers are willing to produce depending on the price (P) | 38 | |
| 5729401887 | supply | S (describes the behavior of firms in the market) | 39 | |
| 5729401888 | total costs | TC (what a firm has to incur in order to produce their product(s); fixed costs (FC) + variable costs (VC) | 40 | |
| 5729401889 | total revenue | TR (the amount of revenue earned (price (P) times the quantity (Q)) before total costs (TC) are paid) | 41 | |
| 5729401890 | wage | W (the money earned for work) | 42 |