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






2. Cost of living allowance






3. Monetary






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






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






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






7. GDP = C + Ig + G + Xn






8. Inflation caused by excess demand in the economy






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






10. Output sacrificed due to unemployment






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






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






13. 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






14. Periodic and predictable economic changes






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






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






17. Frictional + structural unemployment






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






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






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






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






22. Cyclical unemployment is at 0






23. The sale of goods and services to households






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






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






26. Recurrent ups and downs of economic activity






27. The average of all prices is falling






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






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






30. Maximum output of business cycle






31. 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






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






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






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






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






36. 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)






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






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






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






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






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






42. Temporary and associated with turnover in the labor market






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






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






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






46. All investment spending by government and business firms






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






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






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






50. Personal income less income taxes