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CLEP Macroeconomics: Measurement Of Economic Performance

Subjects : clep, economics
Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Output measured at current prices - and thus unadjusted figure for GDP






2. Measures national income as the sum of the incomes received by productive resources in the economy; also called Gross Domestic Income (GDI)






3. Government purchase of goods and services; does not include transfer payments and expenditures for servicing the national debt or investment goods






4. Temporary and associated with turnover in the labor market






5. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP






6. Results from laborers having a mismatched skill set with what is demanded by the current labor market






7. Used for comparing the price of a specific market basket of goods and services in one particular year to the price in a base year






8. Frictional + structural unemployment






9. The average of all prices is falling






10. Consumption - investment - government - and net exports






11. GDP = C + Ig + G + Xn






12. Output sacrificed due to unemployment






13. Second-hand sales (goods not produced that year) and financial transactions (moving money from x to y); not counted in GDP






14. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions






15. Calculate spending and income: what is spent on a product is received as income by those who contributed to the product's production. the spending amount and income amount should equal one another.






16. All investment spending by government and business firms






17. Those that are used to produce other goods that will eventually be sold (miller sells flour to a baker); not counted in GDP






18. Measures the prices of a fixed market basket of over 300 consumer goods and services purchased by the typical urban consumer






19. Income earned by the factors of production for their current contributions to production; total dollar value of all final goods and services produced for consumption in society during a particular time period






20. Shows how money and goods and services flow between the various markets and players in the economy






21. Inflation arising from the supply or cost side of the economy






22. For every 1% the actual unemployment rate exceeds the natural (frictional + structural) unemployment rate - a 2.5% GDP gap occurs


23. Maximum output of business cycle






24. GDI = w + i + r + pi + misc






25. (1) wages - (2) rents - (3) profits - (4) interest - (5) misc






26. The price index that puts all goods and services in the market basket; measures the overall price level change - not just a change in price of typical consumer goods






27. (base year basket valued at current year prices/base year basket valued at base year prices) x 100






28. Phase of the business cycle where output and employment are at their lowest levels






29. Output measured at base year prices - and thus adjusted






30. The civilian labor force expressed as a percentage of the labor force population






31. Measures the amount of goods and services one's money can buy; measures purchasing power






32. Phase of the business cycle which is characterized by a period of at least six months where there is a decline in total output - income and employment






33. Cost of living allowance






34. Those who are on ______ incomes are hurt most by inflation






35. Recurrent ups and downs of economic activity






36. All people living in a society who are of legal age to work






37. Used to calculate how long it will take for prices to double; divide the number 70 by the annual inflation rate to find out how many years it will take for prices to double






38. The total net sales of goods sold abroad minus the total net spent on purchases from other countries






39. All people who are either employed or unemployed - but excludes people who are institutionalized or in the military






40. The number of dollars one receives as wages - rent - interest or profit






41. A person who is available for and looking for work - but has none






42. A sustained rise in the general price level of an economy






43. Periodic and predictable economic changes






44. Income earned that is available to resource suppliers and others before payment of personal taxes






45. Allows us to keep tabs on the economic health of society and to develop policies that will improve that health






46. Caused by the actions of people who have come to expect a certain amount of inflation in the economy






47. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories






48. Cyclical unemployment is at 0






49. Inflation caused by excess demand in the economy






50. The percentage of unemployed workers in the civilian labor force