Ap Microeconomics Key Terms (Crash Course) Study Guide Questions And Correct Answers

Allocative Effeciency {Ans: Otherwise known as the Socially Optimal Point, it is the amount of production that benefits society the most. It is achieved when the marginal benefit of production is equal to the marginal cost.}Elastic {Ans: Describes the rate of change in quantity that is greater than the rate of change in price.}Productive Effeciency {Ans: When the least amount of waste happens in producing as much output as possible.}Price Elasticity of Demand {Ans: The responsiveness of quantity changes relative to price changes.}Labor {Ans: People's mental and or physical effort and skill used in producing goods and services.}Shortage {Ans: When the quantity demanded is greater than the quantity supplied.}