AP Macro Unit 1 Vocab #1

Front

Marginal Analysis

Back

Making decisions based on increments

Front

Land

Back

All natural resources used to produce goods and services.

Front

Labor

Back

Any effort a person devotes to a task for which that person is paid.

Front

Human Capital

Back

Skills or knowledge gained by a worker through education and experience.

Front

Entrepreneurship

Back

Leaders that combine the other factors of production to create goods and services

Front

Scarcity

Back

The problem of having unlimited wants but limited resources

Front

Positive Statement

Back

Based on facts. Avoids value judgments (what is)

Front

Normative Statement

Back

Based on opinion. Includes value judgments (what ought to be)

Front

Trade-offs

Back

All alternatives given up when making a choice.

Front

Opportunity Cost

Back

Most desirable alternative given up when making a choice (2nd best)