Test your basic knowledge |

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. Maximum output of business cycle






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






3. Cyclical unemployment is at 0






4. Output sacrificed due to unemployment






5. 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






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






7. Cost of living allowance






8. 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.






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






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






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






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






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






14. 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






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






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






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






18. All investment spending by government and business firms






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






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






21. 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)






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






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






24. Personal income less income taxes






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






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






27. Periodic and predictable economic changes






28. Frictional + structural unemployment






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






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






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






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






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






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






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. Temporary and associated with turnover in the labor market






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






39. The sale of goods and services to households






40. 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






41. Recurrent ups and downs of economic activity






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


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






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






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






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






47. GDP = C + Ig + G + Xn






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






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






50. 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