AP Econ Mod. 1 Vocab (Section 1)

Front

Study of scarcity and how people satisfy needs and wants through choices.

Back

Economics

Front

System coordinating production and consumption, distributing goods and services.

Back

Economy

Front

Decision-making involves choices and trade-offs.

Back

Individual choice

Front

Industry is publicly owned; a central authority (usually government) decides production and consumption.

Back

Command Economy

Front

Decisions by producers and consumers shape production with minimal government involvement.

Back

Market Economy

Front

Rewards or punishments that motivate a choice.

Back

Incentives

Front

Ownership and trading rights

Back

Property Rights

Front

Study of costs and benefits of slightly increasing or decreasing an activity.

Back

Marginal analysis

Front

Anything that can produce goods and services

Back

Resource

Front

Natural resources for goods and services

Back

Land