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CLEP Macroeconomics: Measurement Of Economic Performance

Subjects : clep, economics
Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. 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






2. GDP = C + Ig + G + Xn






3. 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.






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






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






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






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






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






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


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






11. Total income earned by resource suppliers for their contributions to the production of the GNP






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






13. A basic accounting measure of total production of goods and services of the national economy in one year






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






15. All investment spending by government and business firms






16. Maximum output of business cycle






17. Cost of living allowance






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






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






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






21. Monetary






22. The sale of goods and services to households






23. 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






24. Output sacrificed due to unemployment






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






26. 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






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






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






29. Measures GDP by adding up all that is spent by various consumers on this year's total output of final goods and services; also called gross national expenditure (GNE)






30. Periodic and predictable economic changes






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






32. Recurrent ups and downs of economic activity






33. Inflation caused by excess demand in the economy






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






35. Consumption - investment - government - and net exports






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






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






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






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






40. 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






41. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance






42. Frictional + structural unemployment






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






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






45. Output measured at current prices - and thus unadjusted figure for GDP






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






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






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






49. Excess unemployment caused because the economy deviates from the long run output potential of the economy






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