AP Micro

BIG IDEAS

1. Economics focuses on Scarcirty and how it requires individuals, businesses, and governments to make choices

2. Society’s economic system determines what will be produced, how will it be produced, and how it will be allocated

3. The production possibilities curve shows the different combinations of two goods that can be produced using all of a country’s resources to the fullest

4. Countries that have a comparative advantage can specialize in the production of specific goods and trade with other countries at a lower opportunity cost than if they produce everything on their own

5. Marginal analysis involves weighing the additional benefits and additional costs of any decision