AP Microeconomics Terms

scarcity CORRECT ANSWER the limited nature of society's resources economics CORRECT ANSWER the study of how society manages its scarce resources efficiency CORRECT ANSWER the property of society getting the most it can from its scarce resources rational people CORRECT ANSWER people who systematically and purposefully do the best they can to achieve their objectives marginal changes CORRECT ANSWER small incremental adjustments to a plan of action incentive CORRECT ANSWER something that induces a person to act market power CORRECT ANSWER the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices productivity CORRECT ANSWER the quantity of goods and services produced form each hour of a worker's time inflation CORRECT ANSWER an increase in the overall level of prices in the economy