AP Economics & Government Flashcards
6 cards from real AP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 AP Economics & Government flashcards as text
In AP U.S. Government, what is the purpose of the system of checks and balances?
Answer: To prevent any one branch of government from gaining too much power
Checks and balances give each branch of government powers to limit the others, preventing any single branch from becoming too powerful.
What is fiscal policy?
Answer: Government use of taxation and spending to influence the economy
Fiscal policy refers to government decisions about taxation and public spending used to influence macroeconomic conditions.
In AP Government, what does the term 'federalism' describe?
Answer: A division of power between national and state governments
Federalism divides governmental authority between a national (federal) government and state governments, each with defined powers.
What is a market externality in economics?
Answer: A cost or benefit affecting parties not involved in a transaction
An externality is an unintended side effect of an economic activity that affects third parties not directly involved in the transaction.
Which economic concept describes a situation where two nations can both benefit by each specializing in what they produce most efficiently?
Answer: Comparative advantage
Comparative advantage holds that nations benefit from trade by specializing in goods they can produce at the lowest opportunity cost.
What is inflation?
Answer: A general rise in the price level of goods and services over time
Inflation is the rate at which the general price level of goods and services rises, reducing the purchasing power of money.