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AP MICRO > Unit 1 Test > Flashcards

Unit 1 Test Flashcards

1
Q

Point inside the curve of opportunity cost curb represent what?

A

A production possibility but under efficient use of resources

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2
Q

Went outside the curve represent what?

A

Not possible with the current resources or technology

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3
Q

New technology or resources that impact capital goods do what to the curve?

A

Move the whole curve outward

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4
Q

New technology resources that impact only consumer goods do what to the curb?

A

It curves out but starts at the same place

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5
Q

What are the four assumptions of production possibilities?

A

Two products, fixed resources, six technology, full efficiency

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6
Q

What are the four types of resources?

A

Land, labor, capital, entrepreneurship

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7
Q

What is the utility?

A

Usefulness

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8
Q

What is marginal utility?

A

Additional uses

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9
Q

Marginal cost equals what?

A

Additional cost

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10
Q

Marginal benefit equals what?

A

Additional benefits

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11
Q

What are the five economic assumptions

A

Resources are scarce, every choice has a trade off, people act out of self interest, people make comparisons to make choices, situations are explained in graphs

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12
Q

What is scarcity?

A

A resource that is wanted but limited

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13
Q

What is macro economics?

A

It’s the economy as a whole and example is government spending

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14
Q

What is Matt microeconomics?

A

Smaller units of economics and example is an individual firm

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15
Q

What is the normative statement?

A

In opinion

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16
Q

What is a positive statement?

A

A fact (can be untrue)

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17
Q

What is allocative efficiency?

A

The producer produces products desired by society

18
Q

What is productive efficiency?

A

The producer produces products in the least costly way

19
Q

What is land?

A

Natural resources

20
Q

What is labor?

A

People/the workforce

21
Q

What is capital?

A

Tools, equipment, factories/things that are used in production

22
Q

What is entrepreneurship?

A

Bringing new products to the market

23
Q

What are capital goods?

A

They are used to make consumer goods/not available to the public

24
Q

What are consumer goods?

A

Things every day people can buy

25
Q

What are the three economic questions?

A

What should be produced? How it should be produced? And who it should be produced for?

26
Q

What is the command economy?

A

It has government own resources, central planning, quotas, no incentives, and very inefficient

27
Q

Is a market economy?

A

Privately owned resources, spontaneous order, public goods and externalities, and runs on free-market principles

28
Q

What is a one word definition of economics?

A

Scarcity

29
Q

Is there a solution for scarcity?

A

No

30
Q

What is opportunity cost?

A

What you’re giving up to do something else

31
Q

How do societies and governments deal with scarcity?

A

They asked for three economic questions and create an economic system

32
Q

What are the pillars of free enterprise?

A

Private property, market competition, pricing system, profit motive

33
Q

Who gets what in a free market is determined by?

A

The price and who is well willing to pay that price

34
Q

What is a comparative advantage?

A

Who is at the least to produce something

35
Q

What is an absolute advantage?

A

Who can make the most of the product

36
Q

If the benefits outweigh the cost of something what should a person do?

A

Go for it

37
Q

Doing everything for yourself Violates what law?

A

Comparative advantage

38
Q

Input

A

Other goes under

39
Q

Output

A

Other goes over

40
Q

Any point on the line of the opportunity cost curve represents what?

A

Full efficient use of resources

AP MICRO (4 decks)

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