ComparativeAdvantageWhen one partyhas a loweropportunity costto produce agood than itstrading partner.TermsofTradeThe amount of goodX that is traded forone unit of good Y -this is acceptable toboth parties when itis between bothopportunity costs.EfficientProductionAnycombination ofproduction ofgoods that liesalong the PPCSupplyThe various quantitiesof a good or servicethat producers arewilling to sell at allpossible market prices.The curve representingthis is always upwardsloping.IncreasingA concave PPCdictates theopportunity costof increasingthe productionof a good is…DemandThe desire,willingness, andability to buy a goodor service. Thecurve representingthis is alwaysdownward slopingAbsoluteAdvantageWhen oneparty canproduce moreof a good thananother party.AttainableandInefficientProductionAnycombination ofproduction ofgoods that liesbelow (orinside) the PPCScarcityLimitedresources tosatisfyunlimitedwantsShortageA signal that themarket price is toolow; at this pricethe quantitydemanded isgreater than thequantity supplied.QuantityDemandedChanges in aproduct'smarket pricewill leadcustomers todecrease ...ProfitPayment forentrepreneurshipInterestPaymentfor theuse ofcapitalSubstituteGoodA product that canbe used in place ofanother good; forexample a sweaterand a jacket.UnattainableProductionAny combinationof production ofgoods that liesabove (orbeyond) thePPC.RentPaymentfor theuse oflandClosedEconomyAn economythat doesnot engagein tradeMarketPriceThe equilibriumprice foundwhere quantitydemandedequals quantitysuppliedConstantLinear PPCdictates theopportunity costof increasingthe productionof a good is…SurplusA signal that themarket price is toohigh; at this pricethe quantitysupplied is greaterthan the quantitydemanded.Law ofDiminishingMarginalUtilityThe more of agood that isconsumed the lesssatisfaction isgained from eachadditional unit.Shift inSupplyFactors such as inputprices, number ofsellers in the market,technologyimprovements, andexpectations for thefuture can cause a…Trade-OffsYou must makechoices abouthow to useresourcesbecause theyare scarceLaborHumaneffortused inproductionInvisibleHandAdam Smith’s ideathat free marketprices will naturallyadjust to reachequilibrium withoutanyone having tocontrol prices.WagesPaymentfor theuse oflaborEntrepreneurshipThe unique andnew combinationof economicresources toproduce newgoods andservicesElasticWhen demandfor a good issensitive tochanges in pricewe say thedemand is…SpecializationWhen a producerfocuses onproducing all ofone good in whichit has thecomparativeadvantageComplementGoodA product that isused with anothergood; forexample amousepad and acomputer mouse.Factors ofProductionInputsneeded toproducegoods andservicesProductionPossibilitiesCurveA curve showingthe differentcombinations thatcan be producedwith the givenresourcesOpportunityCostThe value ofthe “next bestalternative” usefor resources;what is given uInelasticWhen demandfor a good is notsensitive tochanges in pricewe say thedemand is…LandNaturalresourcesused inproductionEquilibriumThe price andquantitywhere supplymeetsdemand.QuantitySuppliedChanges in aproduct'smarket pricewill lead sellersto increase ...CapitalMachineryand toolsused inproduction Shift inDemandFactors such asconsumer tastes andpreferences, prices ofrelated goods,population in themarket, andexpectations for thefuture can cause a…UtilityThe satisfaction,or happiness,consumers getfrom consuminga good orserviceComparativeAdvantageWhen one partyhas a loweropportunity costto produce agood than itstrading partner.TermsofTradeThe amount of goodX that is traded forone unit of good Y -this is acceptable toboth parties when itis between bothopportunity costs.EfficientProductionAnycombination ofproduction ofgoods that liesalong the PPCSupplyThe various quantitiesof a good or servicethat producers arewilling to sell at allpossible market prices.The curve representingthis is always upwardsloping.IncreasingA concave PPCdictates theopportunity costof increasingthe productionof a good is…DemandThe desire,willingness, andability to buy a goodor service. Thecurve representingthis is alwaysdownward slopingAbsoluteAdvantageWhen oneparty canproduce moreof a good thananother party.AttainableandInefficientProductionAnycombination ofproduction ofgoods that liesbelow (orinside) the PPCScarcityLimitedresources tosatisfyunlimitedwantsShortageA signal that themarket price is toolow; at this pricethe quantitydemanded isgreater than thequantity supplied.QuantityDemandedChanges in aproduct'smarket pricewill leadcustomers todecrease ...ProfitPayment forentrepreneurshipInterestPaymentfor theuse ofcapitalSubstituteGoodA product that canbe used in place ofanother good; forexample a sweaterand a jacket.UnattainableProductionAny combinationof production ofgoods that liesabove (orbeyond) thePPC.RentPaymentfor theuse oflandClosedEconomyAn economythat doesnot engagein tradeMarketPriceThe equilibriumprice foundwhere quantitydemandedequals quantitysuppliedConstantLinear PPCdictates theopportunity costof increasingthe productionof a good is…SurplusA signal that themarket price is toohigh; at this pricethe quantitysupplied is greaterthan the quantitydemanded.Law ofDiminishingMarginalUtilityThe more of agood that isconsumed the lesssatisfaction isgained from eachadditional unit.Shift inSupplyFactors such as inputprices, number ofsellers in the market,technologyimprovements, andexpectations for thefuture can cause a…Trade-OffsYou must makechoices abouthow to useresourcesbecause theyare scarceLaborHumaneffortused inproductionInvisibleHandAdam Smith’s ideathat free marketprices will naturallyadjust to reachequilibrium withoutanyone having tocontrol prices.WagesPaymentfor theuse oflaborEntrepreneurshipThe unique andnew combinationof economicresources toproduce newgoods andservicesElasticWhen demandfor a good issensitive tochanges in pricewe say thedemand is…SpecializationWhen a producerfocuses onproducing all ofone good in whichit has thecomparativeadvantageComplementGoodA product that isused with anothergood; forexample amousepad and acomputer mouse.Factors ofProductionInputsneeded toproducegoods andservicesProductionPossibilitiesCurveA curve showingthe differentcombinations thatcan be producedwith the givenresourcesOpportunityCostThe value ofthe “next bestalternative” usefor resources;what is given uInelasticWhen demandfor a good is notsensitive tochanges in pricewe say thedemand is…LandNaturalresourcesused inproductionEquilibriumThe price andquantitywhere supplymeetsdemand.QuantitySuppliedChanges in aproduct'smarket pricewill lead sellersto increase ...CapitalMachineryand toolsused inproduction Shift inDemandFactors such asconsumer tastes andpreferences, prices ofrelated goods,population in themarket, andexpectations for thefuture can cause a…UtilityThe satisfaction,or happiness,consumers getfrom consuminga good orservice

AP Macro: Unit 1 Vocab - Call List

(Print) Use this randomly generated list as your call list when playing the game. There is no need to say the BINGO column name. Place some kind of mark (like an X, a checkmark, a dot, tally mark, etc) on each cell as you announce it, to keep track. You can also cut out each item, place them in a bag and pull words from the bag.


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  1. When one party has a lower opportunity cost to produce a good than its trading partner.
    Comparative Advantage
  2. The amount of good X that is traded for one unit of good Y - this is acceptable to both parties when it is between both opportunity costs.
    Terms of Trade
  3. Any combination of production of goods that lies along the PPC
    Efficient Production
  4. The various quantities of a good or service that producers are willing to sell at all possible market prices. The curve representing this is always upward sloping.
    Supply
  5. A concave PPC dictates the opportunity cost of increasing the production of a good is…
    Increasing
  6. The desire, willingness, and ability to buy a good or service. The curve representing this is always downward sloping
    Demand
  7. When one party can produce more of a good than another party.
    Absolute Advantage
  8. Any combination of production of goods that lies below (or inside) the PPC
    Attainable and Inefficient Production
  9. Limited resources to satisfy unlimited wants
    Scarcity
  10. A signal that the market price is too low; at this price the quantity demanded is greater than the quantity supplied.
    Shortage
  11. Changes in a product's market price will lead customers to decrease ...
    Quantity Demanded
  12. Payment for entrepreneurship
    Profit
  13. Payment for the use of capital
    Interest
  14. A product that can be used in place of another good; for example a sweater and a jacket.
    Substitute Good
  15. Any combination of production of goods that lies above (or beyond) the PPC.
    Unattainable Production
  16. Payment for the use of land
    Rent
  17. An economy that does not engage in trade
    Closed Economy
  18. The equilibrium price found where quantity demanded equals quantity supplied
    Market Price
  19. Linear PPC dictates the opportunity cost of increasing the production of a good is…
    Constant
  20. A signal that the market price is too high; at this price the quantity supplied is greater than the quantity demanded.
    Surplus
  21. The more of a good that is consumed the less satisfaction is gained from each additional unit.
    Law of Diminishing Marginal Utility
  22. Factors such as input prices, number of sellers in the market, technology improvements, and expectations for the future can cause a…
    Shift in Supply
  23. You must make choices about how to use resources because they are scarce
    Trade-Offs
  24. Human effort used in production
    Labor
  25. Adam Smith’s idea that free market prices will naturally adjust to reach equilibrium without anyone having to control prices.
    Invisible Hand
  26. Payment for the use of labor
    Wages
  27. The unique and new combination of economic resources to produce new goods and services
    Entrepreneurship
  28. When demand for a good is sensitive to changes in price we say the demand is…
    Elastic
  29. When a producer focuses on producing all of one good in which it has the comparative advantage
    Specialization
  30. A product that is used with another good; for example a mousepad and a computer mouse.
    Complement Good
  31. Inputs needed to produce goods and services
    Factors of Production
  32. A curve showing the different combinations that can be produced with the given resources
    Production Possibilities Curve
  33. The value of the “next best alternative” use for resources; what is given u
    Opportunity Cost
  34. When demand for a good is not sensitive to changes in price we say the demand is…
    Inelastic
  35. Natural resources used in production
    Land
  36. The price and quantity where supply meets demand.
    Equilibrium
  37. Changes in a product's market price will lead sellers to increase ...
    Quantity Supplied
  38. Machinery and tools used in production
    Capital
  39. Factors such as consumer tastes and preferences, prices of related goods, population in the market, and expectations for the future can cause a…
    Shift in Demand
  40. The satisfaction, or happiness, consumers get from consuming a good or service
    Utility