AP Macroeconomics Unit 1
2026 | Study Guide,
Practice Questions,
Answers, Rationales &
Exam Review | Complete
Ethics Study Guide
Updated 2026 Questions and Answers
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Rationales
Included
, Capital Produced goods that can be used as inputs for further production, such as factories,
machinery, tools, computers and buildings
Ceteris Paribus A Latin term meaning "all other things constant", or "nothing else changes". The
assumption in economics that nothing else changes in a given situation except for
the stated change.
Complements Two goods that are used jointly in consumption.
Consumers' Surplus The difference between the maximum price a buyer is willing and able to pay for a
good or service and the price actually paid.
Marginal Analysis (Decisions at the Margin) Decision making characterized by weighing the additional benefits of a change
against the additional costs of a change with respect to current conditions.
Demand The willingness and ability of buyers to purchase different quantities of a good at
different prices during a specific time period.
Demand Schedule The numerical tabulation of the quantity demanded of a good at different prices.
Disequilibrium A state of either surplus of shortage in a market.
Economic System The way in which society decides to answer key economic questions- in particular
those questions that relate to production and trade.
Economics The science of scarcity; the science of how individuals and societies make choices
because of scarcity.
Entrerpreneurship The particular talent that some people have for organizing the resources of land,
labor and capitol to produce goods, seek new business opportunities, and develop
new ways of doing things.
Equilibrium The price-quantity combination from which there is no tendency for buyers or sellers
to move away.
2026 | Study Guide,
Practice Questions,
Answers, Rationales &
Exam Review | Complete
Ethics Study Guide
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, Capital Produced goods that can be used as inputs for further production, such as factories,
machinery, tools, computers and buildings
Ceteris Paribus A Latin term meaning "all other things constant", or "nothing else changes". The
assumption in economics that nothing else changes in a given situation except for
the stated change.
Complements Two goods that are used jointly in consumption.
Consumers' Surplus The difference between the maximum price a buyer is willing and able to pay for a
good or service and the price actually paid.
Marginal Analysis (Decisions at the Margin) Decision making characterized by weighing the additional benefits of a change
against the additional costs of a change with respect to current conditions.
Demand The willingness and ability of buyers to purchase different quantities of a good at
different prices during a specific time period.
Demand Schedule The numerical tabulation of the quantity demanded of a good at different prices.
Disequilibrium A state of either surplus of shortage in a market.
Economic System The way in which society decides to answer key economic questions- in particular
those questions that relate to production and trade.
Economics The science of scarcity; the science of how individuals and societies make choices
because of scarcity.
Entrerpreneurship The particular talent that some people have for organizing the resources of land,
labor and capitol to produce goods, seek new business opportunities, and develop
new ways of doing things.
Equilibrium The price-quantity combination from which there is no tendency for buyers or sellers
to move away.
