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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. Frictional + structural unemployment






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






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






4. 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






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






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






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






8. 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






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






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






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






12. The average of all prices is falling






13. Recurrent ups and downs of economic activity






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


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






16. 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






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






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






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






20. 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)






21. Personal income less income taxes






22. Monetary






23. Maximum output of business cycle






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






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






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






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






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






29. Output sacrificed due to unemployment






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






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






32. 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






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






34. Consumption - investment - government - and net exports






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






36. GDP = C + Ig + G + Xn






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






38. 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






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






40. Inflation caused by excess demand in the economy






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






42. The sale of goods and services to households






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






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






45. 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.






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






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






48. Cost of living allowance






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






50. All investment spending by government and business firms