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

The law of demand states that, holding all else equal, as the price of a good rises, consumers buy less of it.

Question 2

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

Accepted Answer

Perfect competition

Answer

Perfect competition has many sellers, identical products, free entry and exit, and no single firm can influence price.

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

GDP (Gross Domestic Product) measures the total monetary value of all finished goods and services produced within a country in a specific time period.

Question 4

What is opportunity cost?

Accepted Answer

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

Answer

Opportunity cost is the value of the best alternative you give up when making an economic decision.

Question 5

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

Accepted Answer

Judicial

Answer

The judicial branch, particularly the Supreme Court, exercises judicial review to strike down laws that violate the Constitution.

AP - Advanced Placement Test Practice Test

AP - Advanced Placement Test Practice Test

AP AP Economics & Government