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

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