Brainscape's Knowledge GenomeTM

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


See full index

AP Microeconomics > Unit 1: Basic Concepts > Flashcards

Unit 1: Basic Concepts Flashcards

1
Q

Economics

A

Study of scarcity and choice

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

Individual choice

A

Decisions by individuals about what to do and what not to do

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

Economy

A

System that coordinates choices about production with choices about consumption, and distributes goods and services to the people who want them

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

Market economy

A

Production and consumption are the result of decentralized decisions by many firms and individuals (no central authority)

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

Command economy

A

Industry is publicly owned and there is a central authority making production and consumption decisions

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

Incentives

A

Rewards or punishments that motivate particular choices

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

Property rights

A

Establish ownership and grant individuals the right to trade goods and services with each other

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

Marginal analysis

A

Study of costs and benefits of doing a little bit more of an activity versus a little bit less

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

Resource

A

Anything that can be used to produce something else

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

Land

A

All resources coming from nature, such as minerals, timber, and petroleum

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

Labor

A

Effort of workers

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

Capital

A

Manufactured goods used to make other goods and services

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

Entrepreneurship

A

Efforts of entrepreneurs in organizing resources for production, taking risks to create new enterprises, and innovating to develop new productions and production processes

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

Scarce

A

Resource not available in sufficient quantities to satisfy all the various ways a society wants to use it

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

Opportunity cost

A

Value of what must be given up when making a particular choice

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

Microeconomics

A

Study of how people make decisions and how those decisions interact

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

Macroeconomics

A

Concerned with overall ups and downs in the economy

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

Economic aggregates

A

Economic measures that summarize data across many different markets

19
Q

Positive economics

A

Branch of economic analysis that describes the way the economy actually works

20
Q

Normative economics

A

Makes prescriptions about the way an economy should work

21
Q

Business cycle

A

Short-run alternation between economic downturns (recessions) and economic upturns (expansions)

22
Q

Depression

A

Deep and prolonged economic downturn

23
Q

Expansions

A

Periods of economic upturns (recoveries) when output and employment are rising

24
Q

Employment

A

Number of people currently employed in the economy

25
Q

Unemployment

A

Number of people who are actively looking for work but aren’t currently employed

26
Q

Labor force

A

Equal to the sum of employment and unemployment

27
Q

Unemployment rate

A

Percentage of the labor force that is unemployed

28
Q

Output

A

Quantity of goods and services produced

29
Q

Aggregate output

A

Economy’s total production of goods and services for a given period of time

30
Q

Inflation

A

Rising overall price level

31
Q

Deflation

A

Falling overall price level

32
Q

Price stability

A

When the economy’s aggregate price level is changing slowly

33
Q

Economic growth

A

An increase in the maximum amount of goods and services an economy can produce

34
Q

Model

A

Simplified representation used to better understand a real-life situation

35
Q

Other things equal assumption

A

All other relevant factors remain unchanged (also known as the ceteris paribus assumption)

36
Q

Trade-off

A

Give up something in order to have something else

37
Q

Production possibilities curve (PPC)

A

Illustrates the trade-offs facing an economy that produces only 2 goods, and shows the maximum quantity of one good that can be produced for each possible quantity of the other good produced

38
Q

Efficient

A

No way for anyone in an economy to be better off without making at least 1 person worse off

39
Q

Technology

A

Technical means for producing goods and services

40
Q

Trade

A

Providing goods and services to receive goods and services in return

41
Q

Gains from trade

A

People can get more of what they want through trade than they could if they tried to be self-sufficient (due to specialization)

42
Q

Specialization

A

Each person specializes in the task that he or she is good at performing

43
Q

Comparative advantage

A

An individual has this in producing a good or service if the opportunity cost of producing the good or service is lower for that individual than for other people

44
Q

Absolute advantage

A

An individual has this in producing a good or service if he or she can make more of it with a given amount of time and resources (not the same thing as a comparative advantage)

AP Microeconomics (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions