AP Macro Terms 1.1-2

Things that are desirable but not necessary for

existence.

(a)  

Absolute necessities of life, are few: air, water, food,

clothing, and shelter.

(a)  

The problem of having limited resources

and unlimited wants is called?

(a)  

The study of how people and societies use limited resources to satisfy their unlimited wants.

(a)  

The professionals who study the ways society

allocates its resources to satisfy its wants are called ?

(a)  

The study of the effects of economic forces on individual

parts of the economy, such as businesses, workers, or households.

• macroeconomics

• microeconomics

The study of the impact of changes to the economy as a whole rather than on an individual level.

• microeconomics

• macroeconomics

These are tangible items of value, things that one can

see or touch, such as cars, medicines, and textbooks.

(a)  

These are intangible things that have value. Intangibles can neither be seen nor touched. Haircuts, medical care, and education are examples.

(a)  

People who buy goods and services for personal use are

called ?

(a)