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Key Terms Ap Macro

Definitons of Words

QuestionAnswer
Opportunity Cost the amount of other products that must be forgone or sacrificed to produce a unit of product
Macroeconomics the part of economics concerned with the economy as a whole;with such major aggregates as the household,business, and government sectors;and with measures of the total economy
Aggregate a sum,a mass or assemblage of particulars;a total or gross amount
PPF production possibilities frontier or production possibilities curve
Circular Flow Model the flow of resources from households to firms and of products from firms to households. These flows are accompanied by reverse flows of money from firms to households and from households to firms
Market Any institution or mechanism that brings together buyers (demanders)and sellers (supppliers) of a particular good or service
Demand a schedule showing the amounts of a good or service that buyers (or a buyer) wish to purchase at various prices during some time period
Demand Curve a curve illustrating a demand
Determinants of Demand factors other than price that determine the quantities demanded of a good or service
supply a schedule showing the amounts of a good or service that sellers (or a seller) will offer at various prices during some period
Supply Curve A curve illustrating supply
Determinants of Supply factors other than price that determines the quantities supplied of a good or service
Equilibrium equal balance between any powers,influences,equality or effect.
Created by: Rmenendez12