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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. 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)






2. The sale of goods and services to households






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






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






5. Temporary and associated with turnover in the labor market






6. Maximum output of business cycle






7. Output sacrificed due to unemployment






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






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






10. 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






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






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






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






14. 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






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






16. Cyclical unemployment is at 0






17. Personal income less income taxes






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






19. 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.






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






21. Inflation caused by excess demand in the economy






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






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






24. Phase of the business cycle where output and employment begin to move toward full employment






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






26. Monetary






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






28. GDP = C + Ig + G + Xn






29. Periodic and predictable economic changes






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






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






32. 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






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






34. Cost of living allowance






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






36. The average of all prices is falling






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






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






39. 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






40. All investment spending by government and business firms






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






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






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






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






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






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






47. Frictional + structural unemployment






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






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

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50. Recurrent ups and downs of economic activity