AP Macro Unit 1 Review

Front

Price determination in market economy

Back

Buyers and sellers

Front

Increase in demand for peanut butter

Back

Insect damage to peanut crop; less supply in 3 months

Front

Shortage in economics

Back

Price falls below market-clearing level

Front

Comparative advantage in trucks

Back

Japan, 1/3 airplane per truck

Front

Comparative advantage in airplanes

Back

US: 2 trucks per airplane

Front

Suppliers reduce prices when...

Back

they have a surplus of products to sell.

Front

Point inside PPF indicates:

Back

Resources are under employed

Front

Opportunity cost in linear PPF

Back

1 for 1

Front

Production Possibilities Frontier

Back

Tradeoffs between production levels of two goods

Front

Resource including equipment, machinery, buildings, tools

Back

Capital