Ap Economics
Component #1: Terms
Scarcity-The basic economic problem that arises because people have unlimited wants but resources are limited.
Americans in recent years had to cut back on lavish goods because of the scarcity of money.
Economics- The science that deals with the production, distribution, and consumption of goods and services, or the material welfare of humankind.
Economics involves many issues in the economy of the country and world, from politics to money.
Efficiency-A broad term that implies an economic state in which every resource is optimally allocated to serve each person in the best way while minimizing waste and inefficiency.
Economic efficiency can be used in microeconomics when discussing product.
Equity- The property of distributing economic prosperity fairly among the members of society.
If the rich contribute more in taxes, there would be a bigger distribution of equity.
Opportunity Cost- The money or other benefits lost when pursuing a particular course of action instead of a mutually-exclusive alternative.
Our companies 3rd quarter opportunity costs were extensive and will take awhile to recover.
Incentive-A cost or benefit that motivates a decision or action by consumers, businesses, or other participants in the economy.
The incentive for a new CEO turned out to be quite beneficial.
Productivity-A measure relating a quantity or quality of output to the inputs required to produce it.
If productivity continues to fall, our profits will soon follow.
Inflation-The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.
The current low interest rates for bank loans risks inflation of the dollar.
Business Cycle- A cycle or series of cycles of economic expansion and contraction.
The current business cycle is bad, leading the CEO to make a few cutbacks
Microeconomics-The part of economics about single factors and the effects of individual
Scarcity-The basic economic problem that arises because people have unlimited wants but resources are limited.
Americans in recent years had to cut back on lavish goods because of the scarcity of money.
Economics- The science that deals with the production, distribution, and consumption of goods and services, or the material welfare of humankind.
Economics involves many issues in the economy of the country and world, from politics to money.
Efficiency-A broad term that implies an economic state in which every resource is optimally allocated to serve each person in the best way while minimizing waste and inefficiency.
Economic efficiency can be used in microeconomics when discussing product.
Equity- The property of distributing economic prosperity fairly among the members of society.
If the rich contribute more in taxes, there would be a bigger distribution of equity.
Opportunity Cost- The money or other benefits lost when pursuing a particular course of action instead of a mutually-exclusive alternative.
Our companies 3rd quarter opportunity costs were extensive and will take awhile to recover.
Incentive-A cost or benefit that motivates a decision or action by consumers, businesses, or other participants in the economy.
The incentive for a new CEO turned out to be quite beneficial.
Productivity-A measure relating a quantity or quality of output to the inputs required to produce it.
If productivity continues to fall, our profits will soon follow.
Inflation-The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.
The current low interest rates for bank loans risks inflation of the dollar.
Business Cycle- A cycle or series of cycles of economic expansion and contraction.
The current business cycle is bad, leading the CEO to make a few cutbacks
Microeconomics-The part of economics about single factors and the effects of individual