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






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






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






4. Cyclical unemployment is at 0






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






6. Output sacrificed due to unemployment






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






8. All investment spending by government and business firms






9. 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






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






11. 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.






12. The sale of goods and services to households






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






14. Periodic and predictable economic changes






15. 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






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






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






18. Consumption - investment - government - and net exports






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






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






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






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






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






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






25. 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






26. Cost of living allowance






27. GDP = C + Ig + G + Xn






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






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






30. Temporary and associated with turnover in the labor market






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






32. Monetary






33. Recurrent ups and downs of economic activity






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






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






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






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


38. 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)






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






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






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






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






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






44. The average of all prices is falling






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






46. Maximum output of business cycle






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






48. Inflation caused by excess demand in the economy






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






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