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






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






3. 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






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






5. 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






6. The average of all prices is falling






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






8. Personal income less income taxes






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






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






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






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






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






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






15. 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.






16. Output sacrificed due to unemployment






17. Maximum output of business cycle






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






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






20. 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






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






22. Cost of living allowance






23. Temporary and associated with turnover in the labor market






24. Recurrent ups and downs of economic activity






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






26. 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






27. 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)






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






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


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






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






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






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






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






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






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






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






38. Frictional + structural unemployment






39. Monetary






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






41. All investment spending by government and business firms






42. 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






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






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






45. Inflation caused by excess demand in the economy






46. Periodic and predictable economic changes






47. GDP = C + Ig + G + Xn






48. Cyclical unemployment is at 0






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






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