AP ECON

Marco: dealing with the presidential election, is our economy growing, are our children growing? etc Micro: think firm (the business and how they relate to the overall economy) Basic Economics Concepts Scarcity, Choice, and Opportunity o Scarcity limited resources, unlimited desires [there is a finite amount of water, for example. Scarcity affects everyone] o Consumer must choose between goods and services [not necessarily monetarily speaking/there is always a trade-off] o With choice comes opportunity cost [by buying one thing instead of the other] Other key terms o Marginal vs. total cost Marginal = change in Buy one for $2 and another at $2 ($2 is the marginal) and $4 is the total cost Capital vs. consumer goods o Capital good things used to make things like the actual machinery o Consumer good the product that comes out o Labor is a resource Production possibilities curve o A decision on how much a given product to make o Different combination of goods and services that society and produce in a fully employed economy

Production Possibility Curve can shift with technology and permanent change in resources