Question 1

What is economics?

Accepted Answer

The science of scarcity and its implications for how resources should be used

Question 2

What is scarcity?

Accepted Answer

The gap between limited resources and theoretically unlimited wants

Question 3

What is macroeconomics?

Accepted Answer

The study of the global economy as a whole

(opposite of microeconomics, which is studying individuals)

Question 4

What is opportunity cost?

Accepted Answer

Benefits that are lost when one opportunity is chosen over another

(if you spend 3 hours watching Netflix before an exam instead of studying, the opportunity cost is time spent studying)

Question 5

What is a trade-off?

Accepted Answer

A situation where choosing one option means sacrificing another

Question 6

What are marginal benefits?

Accepted Answer

The additional benefits gained by consuming one additional unit of a good or service

(opposite of marginal cost)

Question 7

What is marginal cost?

Accepted Answer

The additional cost incurred by producing one additional unit of a good or service

1.1 Scarcity, AP Macroeconomics Flashcards