AP ECON Flashcards

11762786170	Scarcity	Limited quantities of resources to meet unlimited wants	0
11762794274	Capital	production technology	1
11762800032	Inflation	A general and progressive increase in prices	2
11762803051	marginal	additional	3
11762812021	marginal benefit	the additional benefit to a consumer from consuming one more unit of a good or service	4
11762814890	marginal cost	the cost of producing one more unit of a good	5
11762819580	Optimal Allocation	marginal benefit (MB) = marginal cost (MC)	6
11762829877	absolute advantage		7
11762829928	comparative advantage		8
11762839489	change in demand		9
11762839490	change in quantity demanded		10
11762844762	change in supply		11
11762851076	change in quantity supplied		12
11762855236	circular flow diagram	a visual model of the economy that shows how dollars flow through markets among households and firms	13
11762866313	opportunity cost		14
11762870449	production possibilities curve		15
11762874482	supply and demand curve		16
11762885138	law of increasing opportunity cost		17
11762892619	Law of Demand		18
11762913009	Trade-off	Giving up one thing for another	19
11762925703	factors of production	land, labor, capital, entrepreneurship	20
11762929704	Law of Supply		21
11762959814	market equilibrium	a situation in which quantity demanded equals quantity supplied	22
11762968882	surplus		23
11762973703	shortage		24
11762973704	consumer surplus		25
11762978831	producer surplus		26
11762988375	total surplus		27
11762991304	deadweight loss		28
11762991427	price floor		29
11762995024	price ceiling		30
11763017172	tax		31
11763020242	substidy		32
11763029131	price elasticity of demand		33
11763032457	price elasticity of supply		34
11763053125	elastic		35
11763057679	Inelastic		36
11763062092	unit elastic		37
11763067370	perfectly inelastic		38
11763071705	perfectly elastic		39
11763074684	total revenue test		40
11763093349	income elasticity of demand		41
11763096699	cross elasticity of demand		42
11763106353	normal goods		43
11763109504	inferior good		44
11763114687	complementary goods		45
11763118077	substitute goods		46
11767739650	Externality	the impact of one person's actions on the well-being of a bystander	47
11767749938	marginal private cost		48
11767753627	marginal private benefit		49
11767759746	marginal social cost		50
11767762004	marginal social benefit		51
11767769631	positive externality		52
11767773130	negative externality		53
11767777833	rival good		54
11767780001	excludable good		55
11767782460	non-rival good		56
11767788047	Non-excludable		57
11767790561	private goods		58
11767790562	common good		59
11767794925	club goods	excludable but not rival	60
11767796522	public goods	Goods that are neither excludable nor rival in consumption	61
11767806053	free rider problem		62
11767815764	allocative efficiency		63
11767818852	productive efficiency		64
11767824630	Utility	the capacity to be useful and provide satisfaction	65
11767827509	total utility	the total amount of satisfaction obtained from consumption of a good or service	66
11767830345	marginal utility	satisfaction or usefulness obtained from acquiring one more unit of a product	67
11767836205	law of diminishing marginal utility	the principle that consumers experience diminishing additional satisfaction as they consume more of a good or service during a given period of time	68
11767851026	varible cost	costs that change as output changes	69
11767853138	fixed costs	costs that remain constant as output changes	70
11767862911	total revenue		71
11767865320	marginal revenue		72
11767870384	Law of Diminishing Marginal Returns		73
11767873608	law of increasing relative cost		74
11767886514	perfectly competitive market		75
11767890309	profit maximization	A method of setting prices that occurs when marginal revenue equals marginal cost.	76
11767893864	loss minimization	When a firm faces the certainty of incurring losses, its goal is to incur the lowest loss possible with the production of its goods and services.	77
11767899546	Revenue Maximizing	MR=0	78
11767901733	Classic Shutdown		79
11767901734	Monopoly	A market in which there are many buyers but only one seller.	80
11767907294	economies of scale	factors that cause a producer's average cost per unit to fall as output rises	81
11767909225	diseconomies of scale		82
11767913711	product market	A market in which products are sold by firms and bought by households.	83
11767916208	Factor market (resource market)	the market for the factors of production - land, labor, capital, and entrepreneurship	84