Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

FLASHCARD MANIA > AP Macroecon vocab v.3p.2 > Flashcards

AP Macroecon vocab v.3p.2 Flashcards

1
Q

unlimited wants but limited resources

A

Scarcity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

study of the economy as a whole or economic aggregate

A

Macroeconomics

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

study of small economics units such as individuals, firms, or markets

A

Microeconomics

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Based on facts, avoids value judgements (what is)

A

Positive statements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Includes value judgements (what ought to be)

A

Normative statements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Making decisions based on increments

A

Marginal analysis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

All the alternatives that we give up when we make a choice

A

Trade off

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Most desirable alternative given up when you make a choice

A

Opportunity cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Satisfaction

A

Utility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Marginal

A

Marginal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Distribute

A

Allocate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

created for direct consumption

A

consumer goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

goods used to make consumed goods

A

Capital goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Human made resource used to create other goods and services

A

Physical capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Skills or knowledge gained by a worker through education and experience

A

Human capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Measure of efficiency that shows the number of outputs per unit input

A

Productivity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Resources easily adaptable for producing either goods, straight line PPC

A

Constant opportunity cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Producing more of one good increases the resource cost of the other good, bowed PPC

A

Law of increasing opportunity cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Producer that can produce the most output or requires the least amount of inputs

A

Absolute advantage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Producers with the lowest opportunity cost

A

Comparative advantage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Agreed upon conditions that would benefit both countries

A

Terms of trade

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Different quantities of goods that consumers are willing and able to buy at different prices

A

Demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Inverse relationship between price and quantity demanded

A

Law of Demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

If price goes up for a product, that produce will be bought less and more of a similar product will be bought

A

Substitution effect

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

If the price goes down for a product, the purchasing power increases for consumers allowing them to purchase more

A

Income effect

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

The more you consume anything, the additional satisfaction you receive will start to decrease

A

Law of diminishing marginal utility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

All other things held constant

A

Ceteris Paribus

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Goods used in place of another one

A

Substitutes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Two goods that are bought and used together

A

Complements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

As income increases, demand increases or as income falls, demand falls

A

Normal goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

As income increases, demand falls or as income falls, demand increases

A

Inferior goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Different quantities of a good that sellers are willing and able to sell at different prices

A

Supply

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Direct relationship between price & quantity supplied, as price increases, quantity produced increases and as price falls, quantity produced falls

A

Law of supply

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Payment a government makes to a business or market to increase supply

A

Subsidy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Ambiguous

A

Indeterminate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Max legal price a seller can charge for a product, shortage

A

Price ceiling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Minimum legal price a seller can sell a product, surplus

A

Price floor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Production Possibilities Curve shifters

A

1.) Change in resource quantity or quality
2.) Change in technology
3.) Change in trade

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Demand shifters

A

1.) Taste and preferences
2.) Number of consumers
3.) Price of related goods: substitutes and complements
4.) Income
5.) Futures expectations
6.) Price/Quantity demanded = no shift, only movement

40
Q

Supply shifters

A

1.) Price/availability of input (resources)
2.) Number of sellers
3.) Technology
4.) Government actions: taxes and subsidies
5.) Expectation of future profit
6.) Price/Quantity supplied = no shift, only movement

41
Q

Part of the economy run by individuals and businesses

A

Private sector

42
Q

Part of the economy that is controlled by the government

A

Public sector

43
Q

Payment for the factors of production like rent, wages, interest, and profit

A

Factor payments

44
Q

When the government redistributes income like welfare or social welfare

A

Transfer payments

45
Q

Government payments to businesses to increase supply

46
Q

Dollar value of all final new goods and services produced within a country in one year

A

Gross domestic product (GDP)

47
Q

GDP divided by population/per person

A

GDP per capita

48
Q

Goods inside final goods that don’t count towards GDP

A

Intermediate goods

49
Q

Goods that don’t wear out quickly and last over a long period of time

A

Durable goods

50
Q

Goods that have a short life cycle

A

Nondurable goods

51
Q

Workers that are actively looking for a job but aren’t working

A

Unemployment

52
Q

Unemployment that is temporary or being between jobs and the person has transferable skills

A

Frictional unemployment

53
Q

Unemployment based on time of year or nature of the job

A

Seasonal unemployment

54
Q

Changes in the labor force that make some skills obsolete

A

Structural unemployment

55
Q

Unemployment where automation and machinery replace workers

A

Technological unemployment

55
Q

Unemployment caused by recession

A

Cyclical unemployment

56
Q

Amount of unemployment that exists when the economy is healthy and growing, focuses on output and and not having too much unemployment

A

Natural rate of unemployment (NRU)

57
Q

Focuses on Inflation and not having too little unemployment

A

Non-Accelerating Inflation Rate of Unemployment (NAIRU)

58
Q

Some people are no longer looking for a job because they have given up

A

Discouraged workers

59
Q

Someone who wants more hours and can’t get them but are still considered employed

A

Underemployed workers

60
Q

Rising general level of prices and reduces purchasing power of money

61
Q

Decrease in general prices and causes people to hoard money

62
Q

Prices increasing at slower rates

A

Disinflation

63
Q

Wage measured by dollars rather than purchasing power

A

Nominal wage

64
Q

Wage adjusted for inflation

65
Q

GDP measured in current prices and doesn’t account for inflation from year to year

A

Nominal GDP

66
Q

GDP expressed in constant or unchanging dollars and adjusts for inflation

67
Q

Shifters of Aggregate Demand

A

1.) Change in Consumer spending
2.) Change in Investment spending
3.) Change in Government spending
4.) Change in Net Exports

68
Q

Shifters of Aggregate Supply

A

1.) Change in Resource prices
2.) Change in Actions of the Government
3.) Change in Productivity

69
Q

Shifters of the Long Run Aggregate Supply

A

1.) Change in resource quantity or quality
2.) Change in technology

70
Q

Added as together

71
Q

All the goods and services that buyers ware willing and able to purchase at different price levels, real GDP

A

Aggregate demand AD

72
Q

Higher price levels reduce the purchasing power of money and decreases quantity of expenditures and vice versa

A

Wealth effect/Real balance effect

73
Q

For price level increases, lenders need to charge higher interest rate to get a real return on loans, high interest rates discourage consumers and investing

A

Interest rate effect

74
Q

When your price level rises, exports fall and imports rise causing real GDP to fall

A

Foreign trade effect

75
Q

Initial change in spending will set off a magnified, spending chain

A

Multiplier effect

76
Q

How much people consumer rather than save when there is a change in disposable income, expressed as a fraction/decimal

A

Marginal Propensity to Consume MPC

77
Q

How much people save rather than consume when there is a change in disposable income, expressed as a fraction/decimal

A

Marginal Propensity to Save MPS

78
Q

Amount of goods and services (real GDP) that firms will produce in an economy at different price levels

A

Aggregate supply AS

79
Q

Wages & resources prices are sticky & won’t change as price level changes

A

Short-run aggregate supply SRAS

80
Q

Wages & resource prices are flexible & will change as price level changes

A

Long-run aggregate supply LRAS

81
Q

Stagnant economy + inflation causes a recessionary gap

A

Stagflation

82
Q

Demand pulls up prices and causes aggregate demand to increase

A

Demand-pull inflation

83
Q

Higher production costs increase prices causing SRAS to decrease

A

Cost-push inflation

84
Q

Amount consumers will spend regardless of income to pay for necessities

A

Autonomous consumption

85
Q

Income after taxes

A

Disposable income

86
Q

Negative savings

87
Q

Actions by Congress to stabilize the economy

A

Fiscal policy

88
Q

Actions by the Federal Reserve Bank to stabilize the economy

A

Monetary policy

89
Q

New bill to change AD through government spending or taxation but lags

A

Discretionary fiscal policy

90
Q

Permanent spending or taxation laws to work counter cyclically to stabilize the economy

A

Non-discretionary fiscal policy/automatic stabilizers

91
Q

Laws that reduce inflation and decrease GDP by decreasing government spending and increases taxes to close an inflationary gap

A

Contractionary fiscal policy

92
Q

Laws that reduce unemployment and increase GDP by increasing government spending and decreasing taxes to close a recessionary gap

A

Expansionary fiscal policy

93
Q

Above or beyond full employment

A

Inflationary gap/positive output gap

94
Q

Below or less than full employment

A

Recessionary gap/negative output gap

FLASHCARD MANIA (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions