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AP Macroeconomics > Unit 1 Vocabulary > Flashcards

Unit 1 Vocabulary Flashcards

1
Q

the study of scarcity and choice

A

economics

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2
Q

decisions by individuals about what to do, which necessarily involve decisions about what not to do

A

individual choice

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3
Q

a system for coordinating a society’s productive and consumptive activities

A

economy

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4
Q

the decisions of individual producers and consumers largely determine what, how, and for whom to produce, with little government involvement in the decisions

A

Market economy

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5
Q

industry is publicly owned and a central authority makes production and consumption decisions

A

command economy

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6
Q

rewards or punishments that motivate particular choices

A

incentives

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7
Q

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

A

property rights

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8
Q

is the study of costs and benefits of doing a little bit more of an activity vs. a little bit less

A

marginal analysis

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9
Q

anything that can be used to produce something else

A

resource

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10
Q

all resources that come from nature, such as minerals, timber, and petroleum

A

land

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11
Q

the effort of workers

A

labor

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12
Q

manufactured goods used to make other goods and services

A

capital

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13
Q

the efforts of entrepreneurs in organizing resources for production, taking risks to create new enterprises, and innovating to develop new products and production processes`

A

entrepreneurship

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14
Q

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

A

scarce resource

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15
Q

the value of the next best alternative that you must give up in order to get the item

A

opportunity cost

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16
Q

the study of how individuals, households, and firms make decisions and how those decisions interact

A

microeconomics

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17
Q

concerned with the overall ups and downs of the economy

A

macroeconomics

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18
Q

economic measures that summarize data across many different markets

A

economic aggregates

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19
Q

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

A

positive economies

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20
Q

makes prescriptions about the way the economy should work

A

normative economies

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21
Q

the alternation between economic downturns, known as recessions, and economic upturns, known as expansions

A

business cycle

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22
Q

periods of economic downturns when output and employment are falling

A

recessions

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23
Q

periods of economic upturns when output and employment are rising

A

expansions

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24
Q

very deep and prolonged downturn

A

depression

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25
Q

the number of people who are currently working for pay in the economy

A

employment

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26
Q

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

A

unemployment

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27
Q

equal to the sum of employment and unemployment

A

labor force

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28
Q

percentage of the labor force that is unemployed

A

unemployment rate

29
Q

the quantity of goods and services produced

A

output

30
Q

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

A

aggregate output

31
Q

rising overall price level

A

inflation

32
Q

falling overall price level

A

deflation

33
Q

the overall price level is changing only slowly if at all

A

price stability

34
Q

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

A

economic growth

35
Q

a simplified representation used to better understand a real-life situation

A

model

36
Q

all other relevant factors remain unchanged (ceteris paribus assumption)

A

the other things equal assumption

37
Q

you give up something in order to have something else

A

trade-off

38
Q

illustrates the trade offs facing an economy that produces only two goods; shows the maximum quantity of one good that can be produced for each possible quantity of the other good produced

A

production possibilities curve

39
Q

there is no way to make anyone better off without making at least one person worse off

A

efficient

40
Q

produces at a point on its PPC

A

production efficiency

41
Q

produces at the point along its PPC that makes consumers as well off as possible

A

allocative efficiency

42
Q

market economy; individuals provide goods and services to others and receive goods and serves in return

A

trade

43
Q

people can get more of what they want through trade than the could if they tried to be self-sufficient; each person specializes in the task that he or she is good at preforming

A

gains from trade; specilization

44
Q

the opportunity cost of producing the good or service is lower for that individual than for other people

A

comparative advantage

45
Q

can make more of it with a given amount of time and recourses

A

absolute advantage

46
Q

indicate the rate at which one good can be exchanged for another

A

terms of trade

47
Q

a measure that can take on more than one value

A

variable

48
Q

solid horizontal line that goes through the origin on a graph

A

x axis

49
Q

solid vertical line that goes through the origin on a graph`

A

y axis

50
Q

the value of one variable directly influences or determines the value of the other variable

A

casual relationship

51
Q

determining variable in a casual relationship

A

independent variable

52
Q

determined variable in a casual relationship

A

dependent variable

53
Q

line on a graph

A

curve

54
Q

a curve that shows the relationship between two variables is a straight line

A

linear relationship

55
Q

the curve is not a straight line

A

nonlinear relationship

56
Q

when an increase in one variable is associated with an increase in the other variable

A

positive relationship

57
Q

when an increase in one variable is associated with a decrease in the other variable

A

negative relationship

58
Q

indicates the value of the x variable when the value of the y variable is zero

A

horizontal intercept

59
Q

indicates the value of the y variable when the value of the x variable is zero

A

vertical intercept

60
Q

measure of how steep it is; indicates how sensitive the y is to a change in the x

A

slope

61
Q

slope changes

A

nonlinear curve

62
Q

the value of that number without a minus sign

A

absolute value

63
Q

point along a curve with the largest value of y

A

maximum point

64
Q

point along a curve with the smallest value of y

A

minimum point

65
Q

has successive dates on the horizontal axis and the values of a variable that occurred on those dates on the vertical axis

A

time-series graph

66
Q

each point corresponds to an actual observation of the x and y

A

scatter diagram

67
Q

uses bars of various heights or lengths to indicate values of a variable

A

bar graph

68
Q

the technical means of producing goods and services

A

technology

AP Macroeconomics (7 decks)

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