AP Microeconomics Flashcards: Scarcity
Written by AP Content Team, Verified for 2026 AP Exams, Last updated: May 2026
Review key ideas with interactive flashcards. This set includes 10 cards to help you master important concepts.
A city has a limited budget and must choose between funding a new park or repairing roads. What economic principle does this illustrate?
This illustrates the principle of economic trade-offs, which are necessary because of the scarcity of resources (in this case, the city's budget).
Card 1 of 10
All Flashcards (10)
A city has a limited budget and must choose between funding a new park or repairing roads. What economic principle does this illustrate?
This illustrates the principle of economic trade-offs, which are necessary because of the scarcity of resources (in this case, the city's budget).
Explain the relationship between resources, wants, and trade-offs.
Because resources are scarce relative to society's wants and needs, individuals and groups are forced to make choices, known as trade-offs.
What are 'factors of production'?
Factors of production are resources, such as land, labor, and capital, that are used to produce goods and services.
What is the direct economic consequence of scarcity?
Economic trade-offs are the direct consequence of scarcity, as choices must be made when resources are insufficient to satisfy all wants.
List three examples of factors of production that are typically scarce.
Three examples of factors of production that are typically scarce are land, labor, and capital.
Is the concept of gravity a scarce factor of production? Explain why or why not based on the provided text.
No, as a form of established knowledge, the concept of gravity is not scarce because it has a non-rival nature.
What is the fundamental cause of scarcity?
Scarcity is caused by the lack of sufficient resources to meet all of society's wants and needs.
What are economic trade-offs?
Economic trade-offs are the choices that arise from the lack of sufficient resources (scarcity) to meet society's wants and needs.
What characteristic allows a factor of production like 'established knowledge' to be non-scarce?
Established knowledge may not be scarce due to its non-rival nature, meaning one person's use of it does not diminish its availability to others.
Are all factors of production considered scarce?
No, most factors of production are scarce, but some, like established knowledge, may not be.