unit 1 ap econ Flashcards Set

studied byStudied by 0 people
0.0(0)
learn
LearnA personalized and smart learning plan
exam
Practice TestTake a test on your terms and definitions
spaced repetition
Spaced RepetitionScientifically backed study method
heart puzzle
Matching GameHow quick can you match all your cards?
flashcards
FlashcardsStudy terms and definitions

1 / 38

encourage image

There's no tags or description

Looks like no one added any tags here yet for you.

39 Terms

1
Scarcity
The limited nature of society's resources, meaning there are not enough resources to satisfy all desires.
New cards
2
Opportunity Cost
The next best alternative that is given up when making a choice.
New cards
3
Marginal Thinking
Analyzing the additional benefits of an action compared to its additional costs.
New cards
4
MB=MC
A principle stating that optimal decisions are made when marginal benefits equal marginal costs.
New cards
5
Positive Economics
The branch of economics that deals with objective analysis and facts.
New cards
6
Normative Economics
The branch of economics that involves value judgments and opinions about economic policies.
New cards
7
Circular Flow Model
A visual model that shows how money and products flow through the economy.
New cards
8
Factors of Production
Resources used in the production of goods and services: land, labor, capital, and entrepreneurship.
New cards
9
Law of Increasing Opportunity Cost
As production of one good increases, the opportunity cost of producing an additional unit of this good increases.
New cards
10
Demand Schedule
A table that shows the relationship between the price of a good and the quantity demanded.
New cards
11
Supply Schedule
A table that shows the relationship between the price of a good and the quantity supplied.
New cards
12
Market Equilibrium
The situation where quantity supplied equals quantity demanded at a particular price.
New cards
13
Consumer Surplus
The difference between what consumers are willing to pay and what they actually pay.
New cards
14
Producer Surplus
The difference between what producers are willing to accept for a good and the actual price they receive.
New cards
15
Deadweight Loss
The loss of economic efficiency that occurs when equilibrium for a good or service is not achieved.
New cards
16
Price Ceiling
A maximum price set by the government that can be charged for a good or service.
New cards
17
Price Floor
A minimum price set by the government that must be paid for a good or service.
New cards
18
Substitutes
Goods that can be used in place of each other.
New cards
19
Complements
Goods that are often used together, where an increase in the price of one decreases the demand for the other.
New cards
20
Normal Goods
Goods for which demand increases as consumer income rises.
New cards
21
Inferior Goods
Goods for which demand decreases as consumer income rises.
New cards
22
Total Surplus
The sum of consumer surplus and producer surplus in a market.
New cards
23
International Trade
The exchange of goods and services between countries.
New cards
24
Government Tax Revenue
The income earned by the government from taxing goods and services.
New cards
25
Production Possibilities Frontier
A graph that shows the maximum possible production of two goods given available resources.
New cards
26
Efficient Allocation
A distribution of resources that maximizes the total surplus of the economy.
New cards
27
Price Shift
Changes in the price of a good that can lead to shifts in supply or demand curves.
New cards
28
Supply Shift
A change in the quantity supplied at every price, represented by a new supply curve.
New cards
29
Demand Shift
A change in the quantity demanded at every price, represented by a new demand curve.
New cards
30
New cards
31
New cards
32
New cards
33
New cards
34
New cards
35
New cards
36
New cards
37
New cards
38
New cards
39
New cards

Explore top notes

note Note
studied byStudied by 17 people
312 days ago
5.0(1)
note Note
studied byStudied by 38 people
379 days ago
5.0(1)
note Note
studied byStudied by 21 people
759 days ago
5.0(1)
note Note
studied byStudied by 56 people
798 days ago
5.0(4)
note Note
studied byStudied by 411 people
345 days ago
5.0(2)
note Note
studied byStudied by 20 people
898 days ago
5.0(1)
note Note
studied byStudied by 14 people
899 days ago
5.0(1)

Explore top flashcards

flashcards Flashcard (147)
studied byStudied by 56 people
850 days ago
5.0(1)
flashcards Flashcard (31)
studied byStudied by 16 people
87 days ago
5.0(1)
flashcards Flashcard (90)
studied byStudied by 26 people
422 days ago
5.0(2)
flashcards Flashcard (46)
studied byStudied by 5 people
395 days ago
5.0(1)
flashcards Flashcard (297)
studied byStudied by 602 people
832 days ago
5.0(2)
flashcards Flashcard (26)
studied byStudied by 3 people
815 days ago
5.0(1)
flashcards Flashcard (42)
studied byStudied by 11 people
548 days ago
5.0(1)
flashcards Flashcard (38)
studied byStudied by 7 people
638 days ago
5.0(1)
robot