AP – Flashcard
Unlock all answers in this set
Unlock answersquestion
The condition that arises because wants exceed the ability of resources to satisfy them
answer
Scarcity
question
The social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with scarcity, the incentives that influence those choices, and the arrangements that coordinate them.
answer
Economics
question
The objects(goods) and the actions (services) that people value and produce to satisfy human wants.
answer
Goods and Services
question
What determines the quantities of corn we grow, homes we build, and the health care services we produce?
answer
What?
question
How are foods and services produced? Technology good or bad?
answer
How?
question
For whole are goods and services produced? Minorities and Inequalities?
answer
For whom?
question
The choices that are best for the individual who makes them.
answer
Self Interest
question
The choices that are best for society as a whole.
answer
Social Interest
question
The fact is scarcity- human wants exceed the resources available.
answer
Economics studies choices that arise from one fact. What is that fact?
question
Research is a how question, a cute for cancer is a what question.
answer
With more research, will be cure cancer?
question
For whom
answer
A government must cut it's budget deficit by raising taxes.
question
A choice that uses the available resources to best achieve the objectives of the person making the choice
answer
Rational choice
question
The opportunity cost of something is the best thing you must give up to get it
answer
Opportunity Cost
question
Previously incurred and irreversible cost
answer
Sunk cost
question
The benefit of something is the gain or pleasure it brings
answer
Benefit
question
A choice on the margin is a choice that is made by comparing all the relevant alternatives systematically
answer
Margin
question
The opportunity cost that arises from a one unit increase in an activity. The marginal cost of something is what you must give up to get one additional unit of it.
answer
Marginal cost
question
The benefit that arises from one unit increase in activity. The benefit of something is measured by what you are willing to give up to get one additional unit of it
answer
Marginal benefit
question
I reward or a penalty- a carrot or a stick- that encourages or discourages any action
answer
Incentive
question
Positive statements are about what it is
answer
Positive statement
question
Normative statements are statement about what it ought to be
answer
Normative statement
question
The tendency for the values of two variables to move together in a predictable and related way
answer
Correlation
question
Goods and services that are part of the individuals and used to provide personal enjoyment and contribute to a person's quality of life
answer
Consumption goods and services
question
land labour capital and entrepreneurship
answer
Factors of production
question
Income paid for the use of capital
answer
Interest
question
Consumptions goods and services- capital goods -government goods and services -and exported goods and services
answer
4 broad categories of goods and services that we use in economics
question
Good education is a what question, every child is a for whom question
answer
A good education is the right of every child.
question
Land earns rent labour earns wages capital earns interest entrepreneurship profit or loss
answer
Four factors of productions and the incomes they earn
question
Any arrangement that brings buyers and sellers together and enables them to get information and do business with each other
answer
Market
