[We the Best] AP Microeconomics

  ⭐Economics  -  study how we use scarce resources to best satisfy our unlimited material wants Microeconomics  - individual industries/business firms/households' decision making and behavior Macroeconomics  - examines the economic behavior of aggregates (income, output, employment, etc. on a national scale) Opportunity cost  - tradeoff (something we give up) in order to make a decision because time and resources aren't unlimited; value of what's given up during a tradeoff Marginalism - in weighing both pros and cons of a decision, it's important to weigh both costs and benefits that come from making it. Ex. when deciding whether to produce additional output, firms consider marginal, not sunk cost (costs that are unavoidable, regardless of what happens in the future) Efficient markets - profit opportunities are taken up almost instantaneously; increase in job market & ready supply of workers Methods Normative economics  - policy economics; good & bad outcomes; c