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 Microeconomics, what does the law of demand state?
Answer: As price increases, quantity demanded decreases
The law of demand states that, holding all else equal, as the price of a good rises, consumers buy less of it.
Which type of market structure features many sellers offering identical products with no barriers to entry?
Answer: Perfect competition
Perfect competition has many sellers, identical products, free entry and exit, and no single firm can influence price.
In AP Macroeconomics, what does GDP measure?
Answer: The total value of goods and services produced in a country in a given period
GDP (Gross Domestic Product) measures the total monetary value of all finished goods and services produced within a country in a specific time period.
What is opportunity cost?
Answer: The value of the next best alternative forgone when making a choice
Opportunity cost is the value of the best alternative you give up when making an economic decision.
Which branch of the U.S. federal government has the power to declare laws unconstitutional?
Answer: Judicial
The judicial branch, particularly the Supreme Court, exercises judicial review to strike down laws that violate the Constitution.
What is the primary function of the Federal Reserve in the United States?
Answer: To manage monetary policy and regulate the banking system
The Federal Reserve manages U.S. monetary policy by controlling money supply and interest rates to promote economic stability.