AP AP Economics & Government

Question 1

In AP Microeconomics, what does the law of demand state?

Accepted Answer

As price increases, quantity demanded decreases

Answer

As price increases, quantity demanded increases

Answer

As price decreases, quantity demanded decreases

Answer

Price and demand are unrelated

Question 2

Which type of market structure features many sellers offering identical products with no barriers to entry?

Accepted Answer

Perfect competition

Answer

Monopoly

Answer

Oligopoly

Answer

Monopolistic competition

Question 3

In AP Macroeconomics, what does GDP measure?

Accepted Answer

The total value of goods and services produced in a country in a given period

Answer

The total government spending in a year

Answer

A country's total exports minus imports

Answer

The average income per citizen

Question 4

What is opportunity cost?

Accepted Answer

The value of the next best alternative forgone when making a choice

Answer

The monetary price of a good

Answer

The total cost of production

Answer

The cost of raw materials

Question 5

Which branch of the U.S. federal government has the power to declare laws unconstitutional?

Accepted Answer

Judicial

Answer

Legislative

Answer

Executive

Answer

Administrative

Question 6

What is the primary function of the Federal Reserve in the United States?

Accepted Answer

To manage monetary policy and regulate the banking system

Answer

To collect federal taxes

Answer

To pass the federal budget

Answer

To negotiate trade agreements