ap econ | unit 1 Flashcards

14654730376	economics	the study of scarcity and choice	0
14654733895	individual choice	the decision by an individual of what to do, which necessarily involves a decision of what not to do	1
14654747793	economy	system for coordinating a society's productive and consumptive activities	2
14654755524	market economy	economy in which decisions of individual producers and consumers largely determine what, how, and for whom to produce, with little government involvement in the decisions	3
14654766052	command economy	economy in which industry is publicly owned and a central authority makes production and consumption decisions.	4
14654775917	incentives	rewards or punishments that motivate particular choices	5
14654777854	property rights	- rights that establish ownership and grant individuals the right o trade goods and services with each other - this creates incentive to produce things of value (to keep or trade for mutual gain)	6
14654786898	marginal analysis	the study of the costs and benefits of doing a little bit more of an activity versus a little bit less	7
14654818042	resource	anything that can be used to produce something else	8
14654820337	land	all resource that come from nature, such as minerals, timber, or petroleum	9
14654822847	labor	the effort of workers	10
14654823318	capital	manufactured good used to make other goods and services	11
14654828304	Entrepreneurship	the efforts in organizing resources for production, taking risk to create new enterprises, and innovations to develop new products and production and production processes	12
14654835509	scarcity	the concept that resource are not available in sufficient quantities to satisfy the various way a society wants to use it	13
14654856685	opportunity cost	the real cost of an item - what you must give up in order to get it	14
14654858965	Microeconomics	study of how people make decisions and how those decisions interact	15
14654861917	Economics aggregates	economic measures that summarize data across many different markets ex: unemployment rate, inflation	16
14654866278	Positive Economics	branch of economic analysis that describes the way economy actually works	17
14654869032	normative economics	branch of economics that makes prescriptions about the way the economy should work	18
14654874979	business cycle	short-run alternation between economic downturns known as recessions and economic upturns, known as expansions	19
14654887000	depressions	deep and prolonged economic downturn	20
14654887836	recession	periods of economic downturns when output and employment are falling	21
14654890948	expansions (aka recoveries)	periods of economic upturns when output and employment are rising	22
14654898237	employment	the number of people currently working for pay in the economy	23
14654900436	unemployment	the total number of people who are actively looking for work, but currently not employed	24
14654901936	labor force	a sum of employment and unemployment	25
14654902870	unemployment rate	the percentage of the labor force that is employed. - this is usually a good indicator of what conditions are like in the job market	26
14654906756	output	quantity of goods and services produced	27
14654908449	aggregate output	economy's total production of goods and services for a given time period	28
14654909370	inflation	a rise in the overall price level	29
14654910172	deflation	a falling overall price level	30
14654912474	price stability	when the aggregate price level is changing only slowly - this is desirable because it keeps the economy stable	31
14654923114	economic growth	an increase in the maximum amount of goods and services and economy can produce	32
14654925359	model	simplified representation to better understand a real life situation	33
14654928404	other things equal assumption	the assumption that all other relevant factors remain unchanged - used when studying how one change affects the overall economic outcome	34
14654933755	trade-off	when you give up something in order to have something else	35
14654935025	production possibilities curve	a graph that shows alternative ways to use an economy's productive resources	36
14654937927	Efficiency	there is no way to make anyone better off without making at least one person worse off (no missed opportunities)	37
14654940989	Efficiency in allocation	When an economy is efficiently producing goods that people want to consume	38
14654941702	Technology	technal means for producing goods and services. - source of economic growth	39
14654944045	trade	when individuals in a market economy exchange goods and services for other goods services	40
14658886137	T/F: Your opportunity cost never depends on your alternatives	False	41
14658890203	T/F: With every choice comes with a opportunity cost	True	42
14658895606	T/F: Even a person with unlimited wealth must deal with opportunity.	True	43
14658902145	T/F: The resources in the economy are not all perfectly suitable to the production of all goods	True	44
14659530737	T/F: Upward movement along the PPC involves giving up some of one good to get more of another	True	45
14659542251	T/F: If many workers decided to retire at an early age, the PPC would shift inward.	True	46
14659562174	T/F: Producing more capital goods (physical capital) during a particular period is likely to shift the economy's PPC outward the next period	True	47
14659577610	T/F: Voluntary trade usually helps one party but hurts the other	False	48
14659591679	T/F: The law of increasing opportunity states tat each additional increment of one good requires the economy to give up successively larger increments of the other good	True	49
14659594771	T/F: Opportunity cost are always measured in dollars amounts.	False	50