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ap econ vocab > unit 1 vocab > Flashcards

unit 1 vocab Flashcards

1
Q

economics

A

the study of how scarce resources are used to satisfy unlimited wants

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2
Q

individual choice

A

decisions by individuals about what to do/not to do

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3
Q

economy

A

the wealth and resources of a country or region

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4
Q

market economy

A

a type of economic system where supply and demand regulate the economy

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5
Q

resource

A

components used to produce goods or services for consumption or use

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6
Q

land

A

natural resources such as trees, water, or minerals

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7
Q

labor

A

mental and physical labor

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8
Q

capital

A

factories, machines (producer goods), and money

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9
Q

entrepeneurship

A

someone who organizes, manages, and assumes the risks of a business or enterprise

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10
Q

scarce

A

the lack of a product or resource

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11
Q

opportunity cost

A

the value of the next-highest-valued alternative use of that resource

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12
Q

microeconomics

A

how individual actors make decisions

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13
Q

macroeconomics

A

the study of the economy as a whole

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14
Q

economic aggregates

A

variables that measure the total economic activity for a nation-state or a region

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15
Q

positive economics

A

describes and explains various economic phenomena

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16
Q

normative economics

A

focuses on the value of economic fairness

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17
Q

business cycle

A

the fluctuations in a nation’s aggregate output and employment over time

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18
Q

depression

A

a severe and prolonged downturn in economic activity

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19
Q

recessions

A

A downturn in economic activity characterized by declining real GDP and rising unemployment

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20
Q

expansions

A

real gross domestic product grows for two or more consecutive quarters

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21
Q

employment

A

The total number of people currently employed, either full time or part-time

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22
Q

unemployment

A

describes a person who could be working, and wants to work, but is not working

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23
Q

labor force

A

those in the civilian noninstitutional population, age sixteen years or older, who are employed or who are unemployed and seeking employment

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24
Q

unemployment rate

A

the number of people looking for work divided by the sum of the number of people looking for work and the number of people employed

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25
output
the amount of something produced by a person, machine, or industry
26
aggregate output
The total quantity of goods and services produced in an economy in a given period.
27
inflation
the general rising of prices in a market or aggregate economy over time
28
deflation
the general decrease of prices in a market or aggregate economy over time
29
price stability
when an economy has an aggregate price level that does not change significantly over a period of time
30
economic growth
a sustained increase in real GDP per capita over time
31
model
a visual representation of a person or thing or of a proposed structure
32
other things equal assumption
one economic variable has on another, provided all other variables remain the same.
33
trade-off
all the alternatives that we give up whenever we choose one course of action over others
34
production possibilites curve
a model used to show the tradeoffs associated with allocating resources between the production of two goods
35
efficient
achieve the maximum production using available resources
36
technology
the application of scientific knowledge for practical purposes
37
trade
the exchange of goods, services or resources between one economic agent and another
38
gains from trade
a state increasing their consumption possibilities by specializing in the good in which they have a comparative advantage and trading for a good in which they do not have a comparative advantage
39
specialization
when an individual or a country allocates most or all of its resources towards the production of a particular good or service
40
comparative advantage
a situation in which an individual, business or country can produce a good or service at a lower opportunity cost than another producer
41
absolute advantage
The ability of an actor to produce more of a good or service than a competitor
42
competitive market
a marketplace where there are a large amount of buyers and sellers and no single buyer or seller can affect the market
43
supply and demand model
a partial equilibrium model of economic equilibrium
44
demand schedule
a table that shows the quantity demanded of a good or service at different price levels
45
quantity demanded
the amount of a good or service that a consumer wants at a certain price at a certain time
46
demand curve
A demand curve illustrates the quantity demanded and any price offered on the market
47
law of demand
the relationship between the price level and the quantity demanded of a good or service is inverse
48
change in demand
a shift in consumer desire to purchase a particular good or service, irrespective of a variation in its price.
49
movement along the demand curve
a change in quantity demanded that result from a change in the price of a good or service
50
substitutes
a product or service that consumers see as essentially the same or similar-enough to another product
51
complements
Two goods are complementary if using more of good A requires the use of more good B
52
normal good
a type of goods whose demand shows a direct relationship with a consumer's income
53
inferior good
a product or service that a consumer would readily dispose of or substitute if he or she had more disposable income
54
individual demand curve
a look at the relation between the price of an item and how much people want that item
55
quantity supplied
the number of goods or services that suppliers will produce and sell at a given market price
56
supply schedule
the quantities that firms are willing and able to supply at alternative prices
57
supply curve
shows the positive relationship between price level and real GDP in the short run
58
law of supply
the relationship between the price level and the quantity demanded of a good or service is direct, or positive
59
change in supply
a shift in the entire supply curve, which can happen due to factors such as changes in production costs or taxes
60
movement along the supply curve
results from a change in a good's price
61
input
what is put in, taken in, or operated on by any process or system
62
individual supply curve
the curve that shows various quantities of a commodity that an individual producer or supplier is willing to supply at different prices during a given time
63
equilibrium
a condition in the economy in which the quantity of aggregate demand equals the quantity of aggregate supply
64
equilibrium price
the price in a market at which the quantity demanded and the quantity supplied of a good are equal to one another
65
market-clearing price
the price at which the demand for a good by consumers is equal to the number of goods that can be produced at that price
66
equilibrium quantity
when there is no shortage or surplus of a product in the market
67
surplus
the amount that producers want to sell is greater than the amount that consumers want to buy
68
shortage
a condition where the quantity demanded is greater than the quantity supplied at the market price
69
price controls
an economic policy imposed by governments that set minimums and maximums for the prices of goods and services to make them more affordable for consumers
70
price ceilings
a maximum price that keeps a price from rising above a certain level
71
price floor
a minimum price that keeps a price from falling below a certain level
72
minimum wage
the lowest wage permitted by law or by a special agreement

ap econ vocab (3 decks)

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