AP®︎ Macroeconomics: Topic 1.1 Flashcards

Master key terms and definitions for Topic 1.1 of AP Macroeconomics – Scarcity to help you prep for quizzes and the AP exam.

0%
11 cards total
11 not started
0 learning
0 almost done
0 mastered
Term

Scarcity

Definition

The condition in which unlimited wants exceed limited resources.

1 / 11
Scarcity
Not Started

The condition in which unlimited wants exceed limited resources.

MOD-1.AMOD-1.A.1
Economic Resources / Factors Of Production
Not Started

The inputs used to produce goods and services: land, labor, capital, and entrepreneurship.

MOD-1.A
Land
Not Started

Natural resources used in production, such as water, minerals, forests, and oil.

MOD-1.A
Labor
Not Started

Human effort, skills, and time used to produce goods and services.

MOD-1.A
Capital
Not Started

Man-made resources used to produce other goods and services, including physical and human capital.

MOD-1.A
Physical Capital Vs. Human Capital
Not Started

Physical capital is man-made productive equipment; human capital is workers' education, skills, and knowledge.

MOD-1.A
Entrepreneurship
Not Started

The ability to combine resources and take risks to create goods, services, or businesses.

MOD-1.A
Trade-Offs
Not Started

All the alternatives given up when a choice is made.

MOD-1.AMOD-1.A.1
Opportunity Cost
Not Started

The value of the next best alternative forgone when a choice is made.

MOD-1.AMOD-1.A.1
Basic Economic Questions
Not Started

Every economy must decide what to produce, how to produce, and for whom to produce.

MOD-1.A
Economic Systems
Not Started

Traditional, command, market, and mixed systems differ in how they allocate scarce resources.

MOD-1.A