AP Micro -- Unit 1

studied byStudied by 5 people
0.0(0)
Get a hint
Hint

resources

1 / 15

flashcard set

Earn XP

Description and Tags

optimal consumption + opportunity cost

16 Terms

1

resources

allow us to meet needs and wants

New cards
2

resources are

scarce

New cards
3

types of resources

land, labor, capital

New cards
4

physical capital

tools, equipment, money

New cards
5

human capital

knowledge

New cards
6

opportunity cost

the value of the resources not chosen

New cards
7

absolute advantage

one country produces more/at a faster rate

New cards
8

comparative advantage

produce with less opportunity cost

New cards
9

the production possibilities curve is bowed out because…

resources are not perfect substitutes

New cards
10

economic system

interaction of economic agents meeting needs/wants

New cards
11

market system

resources are privately owned by individuals

resource use/production is driven by self-interest

people without resources struggle

New cards
12

command system

the government owns and controls all resources

resource use is based on government plan

inefficient and poor

New cards
13

mixed system

elements of market and command

lots of free enterprise with some government regulation

New cards
14

utility

satisfaction from consuming a good/service

New cards
15

diminishing marginal utility

each unit has less marginal utility than the previous

New cards
16

optimal consumption

(MU1/P1) = (MU2/P2)

New cards

Explore top notes

note Note
studied byStudied by 18 people
... ago
5.0(1)
note Note
studied byStudied by 4 people
... ago
4.0(1)
note Note
studied byStudied by 11 people
... ago
5.0(1)
note Note
studied byStudied by 5 people
... ago
5.0(1)
note Note
studied byStudied by 20 people
... ago
5.0(1)
note Note
studied byStudied by 22 people
... ago
5.0(1)
note Note
studied byStudied by 12 people
... ago
5.0(1)
note Note
studied byStudied by 35255 people
... ago
4.8(98)

Explore top flashcards

flashcards Flashcard (24)
studied byStudied by 2 people
... ago
5.0(1)
flashcards Flashcard (59)
studied byStudied by 10 people
... ago
5.0(2)
flashcards Flashcard (65)
studied byStudied by 27 people
... ago
4.0(3)
flashcards Flashcard (75)
studied byStudied by 6 people
... ago
5.0(2)
flashcards Flashcard (20)
studied byStudied by 43 people
... ago
5.0(1)
flashcards Flashcard (31)
studied byStudied by 22 people
... ago
5.0(2)
flashcards Flashcard (20)
studied byStudied by 4 people
... ago
5.0(3)
flashcards Flashcard (88)
studied byStudied by 73 people
... ago
5.0(2)
robot