Physical Capital: Any human-made resource that is used to create other goods and services. Human Capital: Any skills or knowledge gained by a worker through education and experience.

Determinants of demand

Tastes and Preferences Number of consumers Price of related goods Income Future expectations

When the total quantity of goods and services produced matches the total amount that households, businesses, government, and foreign buyers want to purchase. (Supply matches demand).

Factors of production

Land Labor Capital Entrepreneurship

The producer that can produce the most output OR requires the least amount of inputs (resources).

The different quantities of goods that consumers are willing and able to buy at different prices.

Supply is the different quantities of a good that sellers are willing and able to sell (produce) at different prices. An upward-sloping curve.

Constant opportunity costs

Resources are easily adaptable for producing either good.

Decreasing opportunity costs

When the cost of producing more of a specific good actually falls as you produce more of it.

The demand curve is downward sloping, showing the inverse relationship between price (on the y-axis) and quantity demanded (on the x-axis).

Comparative advantage

The producer with the lowest opportunity cost.

A state where the aggregate forces of supply and demand are out of balance.

There is a DIRECT (or positive) relationship between price and quantity supplied. The supply curve is

Determinants of supply

Prices/Availability of inputs (resources) Number of Sellers Technology Government Action: Taxes & Subsidies Expectations of Future Profit

When an economy is not producing at its full potential, meaning resources are being wasted or underutilized.

we have unlimited wants but limited resources

most desirable alternative given up when you make a choice.

Mutually beneficial trade

Both countries can benefit from trade if they each have relatively lower opportunity costs.

The agreed upon conditions that would benefit both countries.

Production Possibilities Curve

A production possibilities curve (or frontier) is a model that shows alternative ways that an economy can use its scarce resources.

Help

Options

focusNode

Didn't know it?
click below

Knew it?
click below

Don't Know

Remaining cards (0)

Know

retry

shuffle

restart

0:00

Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

Normal Size Small Size show me how

AP Macro vocab

Term	Definition
Capital	Physical Capital: Any human-made resource that is used to create other goods and services. Human Capital: Any skills or knowledge gained by a worker through education and experience.
Determinants of demand	Tastes and Preferences Number of consumers Price of related goods Income Future expectations
Equilibrium	When the total quantity of goods and services produced matches the total amount that households, businesses, government, and foreign buyers want to purchase. (Supply matches demand).
Factors of production	Land Labor Capital Entrepreneurship
Absolute advantage	The producer that can produce the most output OR requires the least amount of inputs (resources).
Demand	The different quantities of goods that consumers are willing and able to buy at different prices.
Supply	Supply is the different quantities of a good that sellers are willing and able to sell (produce) at different prices. An upward-sloping curve.
Constant opportunity costs	Resources are easily adaptable for producing either good.
Decreasing opportunity costs	When the cost of producing more of a specific good actually falls as you produce more of it.
Demand curve	The demand curve is downward sloping, showing the inverse relationship between price (on the y-axis) and quantity demanded (on the x-axis).
Comparative advantage	The producer with the lowest opportunity cost.
Disequilibrium	A state where the aggregate forces of supply and demand are out of balance.
Supply curve	There is a DIRECT (or positive) relationship between price and quantity supplied. The supply curve is
Determinants of supply	Prices/Availability of inputs (resources) Number of Sellers Technology Government Action: Taxes & Subsidies Expectations of Future Profit
Inefficiency	When an economy is not producing at its full potential, meaning resources are being wasted or underutilized.
Scarcity	we have unlimited wants but limited resources
Opportunity cost	most desirable alternative given up when you make a choice.
Mutually beneficial trade	Both countries can benefit from trade if they each have relatively lower opportunity costs.
terms of trade	The agreed upon conditions that would benefit both countries.
Production Possibilities Curve	A production possibilities curve (or frontier) is a model that shows alternative ways that an economy can use its scarce resources.

Created by: catherinehudicourt

"Know" box contains:
Time elapsed:
Retries: