AP Macro Unit 1 Flashcards
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| 9969330183 | scarcity | the basic economic problem; it is a lack of needed or wanted resources relative to the demand for the resources. | 0 | |
| 9969330184 | TINSTAAFL | acronym for THERE IS NO SUCH THING AS A FREE LUNCH; means that there is always a cost, even if the cost is giving up a different opportunity without a dollar value | 1 | |
| 9969330185 | rational self-interest | individuals pursue actions that will enable them to achieve their greatest satisfaction | 2 | |
| 9969330186 | opportunity cost | the thing you give up when you make any choice- it is the NEXT best option | 3 | |
| 9969330187 | marginal analysis | comparisons of costs and benefits of creating one additional unit- or doing something one more time | 4 | |
| 9969330188 | ceteris paribus | other-things equal assumption; assumes that all other variables except those under immediate consideration are held constant | 5 | |
| 9969330190 | macroeconomics | Study of economics at the national level, total output, unemployment, inflation | 6 | |
| 9969330193 | utility | the pleasure, happiness, or satisfaction obtained from consuming a good or service. | 7 | |
| 9969330194 | factors of production | Land, Labor, Capital, and Entrepreneurship | 8 | |
| 9969330195 | command economy (socialism, communism) | system that relies on public ownership of resources and the use of central planning; government makes most economic decisions | 9 | |
| 9969330196 | market economy | private ownership of resources; markets and prices coordinate economic activity; government plays a role in the economy by providing rules, enforcing contracts, providing public goods | 10 | |
| 9969330197 | specialization | an individual, business, or nation chose to produce whatever provides the most utility | 11 | |
| 9969330198 | consumer goods | goods made for direct consumption | 12 | |
| 9969330199 | trade-offs | all possible options | 13 | |
| 9969330200 | PPC shifters | change in resource availability, change in technology or productivity, | 14 | |
| 9969330201 | production possibilities curve | a model showing the trade-offs between two economic choices; illustrates the concept of opportunity cost |  | 15 |
| 9969330202 | Mixed Economy | Market-based economic system with limited government involvement | 16 | |
| 9969330203 | Liquidity | A measure of how quickly an asset can be converted to into another asset (or used to buy hamburgers) | 17 | |
| 9969330204 | Interest rate | The % that a saver is paid OR the cost of borrowing | 18 | |
| 9969330205 | Cash | Most Liquid asset possible | 19 | |
| 9969330206 | CD | Financial asset- a way to save money that pays a better interest rate than savings account, but trades off some liquidity- Saver pays a penalty to get money back earlier | 20 | |
| 9969330207 | Bond | Financial Asset which can be traded or sold- the prices of bonds move in the opposite of interest rates | 21 | |
| 9969330208 | Capital goods | Capital goods are things used to make other goods or services | 22 |