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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
Q

output

A

the amount of something produced by a person, machine, or industry

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26
Q

aggregate output

A

The total quantity of goods and services produced in an economy in a given period.

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27
Q

inflation

A

the general rising of prices in a market or aggregate economy over time

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28
Q

deflation

A

the general decrease of prices in a market or aggregate economy over time

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29
Q

price stability

A

when an economy has an aggregate price level that does not change significantly over a period of time

30
Q

economic growth

A

a sustained increase in real GDP per capita over time

31
Q

model

A

a visual representation of a person or thing or of a proposed structure

32
Q

other things equal assumption

A

one economic variable has on another, provided all other variables remain the same.

33
Q

trade-off

A

all the alternatives that we give up whenever we choose one course of action over others

34
Q

production possibilites curve

A

a model used to show the tradeoffs associated with allocating resources between the production of two goods

35
Q

efficient

A

achieve the maximum production using available resources

36
Q

technology

A

the application of scientific knowledge for practical purposes

37
Q

trade

A

the exchange of goods, services or resources between one economic agent and another

38
Q

gains from trade

A

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
Q

specialization

A

when an individual or a country allocates most or all of its resources towards the production of a particular good or service

40
Q

comparative advantage

A

a situation in which an individual, business or country can produce a good or service at a lower opportunity cost than another producer

41
Q

absolute advantage

A

The ability of an actor to produce more of a good or service than a competitor

42
Q

competitive market

A

a marketplace where there are a large amount of buyers and sellers and no single buyer or seller can affect the market

43
Q

supply and demand model

A

a partial equilibrium model of economic equilibrium

44
Q

demand schedule

A

a table that shows the quantity demanded of a good or service at different price levels

45
Q

quantity demanded

A

the amount of a good or service that a consumer wants at a certain price at a certain time

46
Q

demand curve

A

A demand curve illustrates the quantity demanded and any price offered on the market

47
Q

law of demand

A

the relationship between the price level and the quantity demanded of a good or service is inverse

48
Q

change in demand

A

a shift in consumer desire to purchase a particular good or service, irrespective of a variation in its price.

49
Q

movement along the demand curve

A

a change in quantity demanded that result from a change in the price of a good or service

50
Q

substitutes

A

a product or service that consumers see as essentially the same or similar-enough to another product

51
Q

complements

A

Two goods are complementary if using more of good A requires the use of more good B

52
Q

normal good

A

a type of goods whose demand shows a direct relationship with a consumer’s income

53
Q

inferior good

A

a product or service that a consumer would readily dispose of or substitute if he or she had more disposable income

54
Q

individual demand curve

A

a look at the relation between the price of an item and how much people want that item

55
Q

quantity supplied

A

the number of goods or services that suppliers will produce and sell at a given market price

56
Q

supply schedule

A

the quantities that firms are willing and able to supply at alternative prices

57
Q

supply curve

A

shows the positive relationship between price level and real GDP in the short run

58
Q

law of supply

A

the relationship between the price level and the quantity demanded of a good or service is direct, or positive

59
Q

change in supply

A

a shift in the entire supply curve, which can happen due to factors such as changes in production costs or taxes

60
Q

movement along the supply curve

A

results from a change in a good’s price

61
Q

input

A

what is put in, taken in, or operated on by any process or system

62
Q

individual supply curve

A

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
Q

equilibrium

A

a condition in the economy in which the quantity of aggregate demand equals the quantity of aggregate supply

64
Q

equilibrium price

A

the price in a market at which the quantity demanded and the quantity supplied of a good are equal to one another

65
Q

market-clearing price

A

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
Q

equilibrium quantity

A

when there is no shortage or surplus of a product in the market

67
Q

surplus

A

the amount that producers want to sell is greater than the amount that consumers want to buy

68
Q

shortage

A

a condition where the quantity demanded is greater than the quantity supplied at the market price

69
Q

price controls

A

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
Q

price ceilings

A

a maximum price that keeps a price from rising above a certain level

71
Q

price floor

A

a minimum price that keeps a price from falling below a certain level

72
Q

minimum wage

A

the lowest wage permitted by law or by a special agreement

ap econ vocab (3 decks)

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