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Unit 1: Basic Economic Concepts

AP Microeconomics — Note Packet

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Key Terms

Scarcity

The fundamental problem that we have unlimited wants, but _ resources.

Factors of Production

The resources used to produce goods and services: Land, Labor, Capital, and _.

Capital (Economic)

Tools, machines, and _ used in production, NOT money.

Trade-off

Giving up one thing to _ another.

Opportunity Cost

The value of the _ best alternative given up when a choice is made.

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