AP MACROECONOMICS FINAL ACTUAL
Questions and CORRECT Answers
economics - CORRECT ANSWER - ..., the study of how society manages its scarce
resources
scarcity - CORRECT ANSWER - ...not enough to go around
resources - CORRECT ANSWER - ...simple things that satisfy human wants, used to
make other things
ceteris paribus - CORRECT ANSWER - ..., all other things held constant
trade-offs - CORRECT ANSWER - ..., all the alternatives that we give up whenever we
choose one course of action over another
macroeconomics - CORRECT ANSWER - ...the study of aggregate economic variables.
And the national and global economy
microeconomics - CORRECT ANSWER - ...study of decisions individual businesses make
marginal - CORRECT ANSWER - ...additional
command economy - CORRECT ANSWER - ...central authority makes decisions on
production and consumption. (Soviet Union)
positive economics - CORRECT ANSWER - ..., An approach to economics that seeks to
understand behavior and the operation of systems without making judgments. It describes what
exists and how it works.
,normative economics - CORRECT ANSWER - ..., the part of economics involving value
judgments about what the economy should be like; focused on which economic goals and
policies should be implemented; policy economics
land - CORRECT ANSWER - ...production resources from nature. (water trees) pay rent.
labor - CORRECT ANSWER - ...human resources. (physical effort, knowledge and skills).
Pay wages, salary.
capital - CORRECT ANSWER - ...produced tools of the trade. (buildings, machines,
tools). pay interest.
entrepreneurship - CORRECT ANSWER - ...the intelligence, imagination and ability to
take risks needed to start up and maintain a business (Bill Gates). profit.
market economy - CORRECT ANSWER - producers and consumers decide what is made,
how much, and for whom.
full employment - CORRECT ANSWER - ...all resources are being used efficiently
full production - CORRECT ANSWER - ..., our nations resources are being allocated in
the most efficient manner possible
consumer vs. capital goods - CORRECT ANSWER - ...consumer goods are:shoes food,
clothes. capital goods are man-made tools of production: a fishing boat, a machine.
production possibilities curve - CORRECT ANSWER - ... illustrates trade-offs and the
optimum efficiency
opportunity cost - CORRECT ANSWER - ...what must be given up to get what you want
, economic growth - CORRECT ANSWER - ...expansion of the production possibilities
frontier.
economic system - CORRECT ANSWER - ...how the questions "what to produce?", "how
to produce it?" and "For whom is it produced?"
traditional economy - CORRECT ANSWER - ..economic decisions made based on what
has always been done. traditions.
circular flow model - CORRECT ANSWER - ...represents transactions in an economy
demand (curve) - CORRECT ANSWER - graphed demand schedule
demand schedule - CORRECT ANSWER - ...how much consumers will be willing and
able to buy at all different price levels
Quantity demanded - CORRECT ANSWER - ...actual amount consumers are willing and
able to buy at a specific price
law of demand - CORRECT ANSWER - ...at a higher price, less is demanded.
factors of demand - CORRECT ANSWER - TRIBE
Tastes
Related goods (price)
Income
# of Buyers
price Expectations
Questions and CORRECT Answers
economics - CORRECT ANSWER - ..., the study of how society manages its scarce
resources
scarcity - CORRECT ANSWER - ...not enough to go around
resources - CORRECT ANSWER - ...simple things that satisfy human wants, used to
make other things
ceteris paribus - CORRECT ANSWER - ..., all other things held constant
trade-offs - CORRECT ANSWER - ..., all the alternatives that we give up whenever we
choose one course of action over another
macroeconomics - CORRECT ANSWER - ...the study of aggregate economic variables.
And the national and global economy
microeconomics - CORRECT ANSWER - ...study of decisions individual businesses make
marginal - CORRECT ANSWER - ...additional
command economy - CORRECT ANSWER - ...central authority makes decisions on
production and consumption. (Soviet Union)
positive economics - CORRECT ANSWER - ..., An approach to economics that seeks to
understand behavior and the operation of systems without making judgments. It describes what
exists and how it works.
,normative economics - CORRECT ANSWER - ..., the part of economics involving value
judgments about what the economy should be like; focused on which economic goals and
policies should be implemented; policy economics
land - CORRECT ANSWER - ...production resources from nature. (water trees) pay rent.
labor - CORRECT ANSWER - ...human resources. (physical effort, knowledge and skills).
Pay wages, salary.
capital - CORRECT ANSWER - ...produced tools of the trade. (buildings, machines,
tools). pay interest.
entrepreneurship - CORRECT ANSWER - ...the intelligence, imagination and ability to
take risks needed to start up and maintain a business (Bill Gates). profit.
market economy - CORRECT ANSWER - producers and consumers decide what is made,
how much, and for whom.
full employment - CORRECT ANSWER - ...all resources are being used efficiently
full production - CORRECT ANSWER - ..., our nations resources are being allocated in
the most efficient manner possible
consumer vs. capital goods - CORRECT ANSWER - ...consumer goods are:shoes food,
clothes. capital goods are man-made tools of production: a fishing boat, a machine.
production possibilities curve - CORRECT ANSWER - ... illustrates trade-offs and the
optimum efficiency
opportunity cost - CORRECT ANSWER - ...what must be given up to get what you want
, economic growth - CORRECT ANSWER - ...expansion of the production possibilities
frontier.
economic system - CORRECT ANSWER - ...how the questions "what to produce?", "how
to produce it?" and "For whom is it produced?"
traditional economy - CORRECT ANSWER - ..economic decisions made based on what
has always been done. traditions.
circular flow model - CORRECT ANSWER - ...represents transactions in an economy
demand (curve) - CORRECT ANSWER - graphed demand schedule
demand schedule - CORRECT ANSWER - ...how much consumers will be willing and
able to buy at all different price levels
Quantity demanded - CORRECT ANSWER - ...actual amount consumers are willing and
able to buy at a specific price
law of demand - CORRECT ANSWER - ...at a higher price, less is demanded.
factors of demand - CORRECT ANSWER - TRIBE
Tastes
Related goods (price)
Income
# of Buyers
price Expectations
