Summary
Summary AP Macroeconomics Semester 1 Review 2024
- Course
- Institution
AP Macroeconomics Semester 1 Review 2024
[Show more]
Content preview
AP Macroeconomics Semester 1 Review 2024Economics - A study of choice under conditions of
scarcity
Positive Economics - The analysis of facts or data to establish scientific generalizations about economic
behavior.
Normative Economics - 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.
Utility - The want-satisfying power of a good or service; the satisfaction or pleasure a consumer obtains
from the consumption of a good or service.
Marginal Analysis - The comparison of Marginal benefits and marginal costs, usually for decision making.
Trade-offs - The sacrifice of some or all of one economic goal, good, or service to achieve some other
goal, good, or service.
Opportunity Cost - The amount of other products that must be forgone or sacrificed to produce a unit of
a product.
Macroeconomics - Looks at the economy as a whole, overview of the economy and the
relationships of its parts
Microeconomics - Looks at specific economic units, Observes the details of a very small segment of the
,AP Macroeconomics Semester 1 Review 2024
economy
Land - In addition to the part of the earth's surface not covered by water, this term refers to any and all
natural resources that are used to produce goods and services.
Labor - Any mental or physical exertion on the part of a human being that is used in the production of a
good or service.
Capital - Human-made resources (buildings, machinery, and equipment) used to produce goods and
services; goods that do not directly satisfy human wants.
Entrepreneur - Individuals who provide entrepreneurial ability to firms by setting strategy, advancing
innovations, and bearing the financial risk if their firms do poorly.
Factors of Production - The four economic resources: land, labor, capital, and entrepreneurial ability.
Market - An institution that brings together buyers
and sellers of particular goods, services, or resources, exists in many forms, link potential buyers with
potential sellers
Demand - A schedule or curve that shows the various amounts of a product that consumers are willing
and able to purchase at each of a series of possible prices during a specified period of time.
Demand Schedule - A table of numbers showing the amounts of a good or service buyers are willing and
able to purchase at various prices over a specified period of time.
, AP Macroeconomics Semester 1 Review 2024
Law of Demand - The principle that, other things equal, an increase in a product's price will reduce the
quantity of it demanded, and conversely for a decrease in price.
Diminishing Marginal Utility - The principle that as a consumer increases the consumption of a good or
service, the marginal utility obtained from each additional unit of the good or service decreases.
Income Effect - A change in the quantity demanded of a product that results from the change in real
income caused by a change in the product's price.
Substitution Effect - A change in the quantity demanded of a consumer good that results from a change
in its relative expensiveness caused by a change in the good's own price.
Demand Curve - A curve that illustrates the demand for a product by showing how each possible price is
associated with a specific quantity demanded.
Determinants of Demand - Factors other than price that determine the quantities demanded of a good
or service. Also referred to as "demand shifters" because changes in the determinants of demand will
cause the demand curve to shift either right or left.
Substitute Goods - Products or services that can be used in place of each other. When the price of one
falls, the demand for the other product falls; conversely, when the price of one product rises, the
demand for the other.
Complementary Goods - Products and services that are used together. When the price of one falls, the
demand for the other increases (and conversely).
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Ellah1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75057 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now