AP macroeconomics

total value of goods and services produced in the economy during a given period, usually a year

the total number of people who are actively looking for work, but aren’t currently employed

a rise in overall price levels

The want satisfying power of a good and service

The land, labor, capital and entrepreneurial abilities that are used to produce goods or services

Economic resources (inputs) Land, capital, labor, entrepreneurship

natural resources used to produce goods or services

Human made resources- machines, equipment-used to produce goods and services

Physical and mental talents and efforts of people used to produce goods and services

Taking risks to create new enterprises (businesses); innovating to develop new products and production process

Use of all available resources, which satisfy human wants directly

Goods that do not directly satisfy human wants

Curve showing the combinations of 2 goods or services

What you must give up in order to get a product or choice

Resources are in shot supply; Unlimited wants with limited resources

As the production of good increases the opportunity cost of producing an additional unit rises (vs. Constant)

An outward shift in the PPC from an increase in quantity or quality or resources, or technological improvement; increase in GDP

An economic system in which property resources are privately owned; markets and prices direct and coordinate economic activity

An economic system in which property resource are publicly owned; the government uses central ecnomic planning to direct economic atvites

An economic system in which has elements of a free market (private property) and command (govt. control)

Any institution or mechanism that brings together buyers (demanders) and sellers (suppliers) of a particular good or service

Amount consumers are willing to buy

A chart showing the amounts of goods or services buyers wish to purchase at various prices during a time period

The principle that an increase in a products price will reduce the quantity

Line showing amount consumers desire of a certain good

In short term, people will derive less and less satisfaction for each additional unit of a good purchased

A change in the price of a consumer good changes a consumer’s purchasing power thus the quantity of the good purchased

A change in the price of a similar good changes the relative expensiveness of the good

Factors other than price that indicate consumer choice

Products or services that can be used in place of each other; when the price of one falls so does the demand for the other

Products or services that can be used together; when the price of one falls the demand for the other increases (and vice versa)

Amount producers are willing to sell

Principal which states that an increase in the price of a product will increase the quantity of it supplied (or the opposite)

Factors other than supply which determine the quantities supplied

The amount by which the quantity supplied exceeds the quantity demanded at a specific- above equilibrium - price

An economic situation in which no individual would be better off doing something different; supply equal to demand

Something that motivates a person or group to act: reward

When one can produce more with the same resources

When one can produce more with a lower opportunity cost

When one concentrates on the activity one is better at doing

The short-run alteration between economic downturns, known as rescissions, economic upturns, known as expansions