AP Microeconomics: Unit 1.Final Test 2026\2027.
Economics
how an individual in society experiences limitless wants, and chooses to allocate
its limited resources to satisfy wants
Efficiency
receiving the maximum benefits from limited resources
Opportunity Cost
what one sacrifices in order to obtain what one wants
Marginal
Extra
Market Economy
Decisions of individual producers and consumers largely determine what, how,
and for whom to produce, with little government involvement in decisions
Productivity
Quantity of goods and services produced from each unit of labor
Business Cycle
Fluctuations in economic activity between economic downturns, recessions, and
economics upturns known as expansions
Traditional Economic System
Economic tasks are passed on from generation to generation
Command Economic System
Government answers each question
Mixed Economic System
Producers, consumers, and government answers economic questions
Scarcity
Limited amount of a desired resource
Economics
how an individual in society experiences limitless wants, and chooses to allocate
its limited resources to satisfy wants
Efficiency
receiving the maximum benefits from limited resources
Opportunity Cost
what one sacrifices in order to obtain what one wants
Marginal
Extra
Market Economy
Decisions of individual producers and consumers largely determine what, how,
and for whom to produce, with little government involvement in decisions
Productivity
Quantity of goods and services produced from each unit of labor
Business Cycle
Fluctuations in economic activity between economic downturns, recessions, and
economics upturns known as expansions
Traditional Economic System
Economic tasks are passed on from generation to generation
Command Economic System
Government answers each question
Mixed Economic System
Producers, consumers, and government answers economic questions
Scarcity
Limited amount of a desired resource
