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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. 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






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






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






4. Output sacrificed due to unemployment






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






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






7. Recurrent ups and downs of economic activity






8. Inflation caused by excess demand in the economy






9. Cyclical unemployment is at 0






10. Temporary and associated with turnover in the labor market






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






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






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






15. Cost of living allowance






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






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






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






19. 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






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






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






22. The average of all prices is falling






23. Maximum output of business cycle






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






25. GDP = C + Ig + G + Xn






26. Frictional + structural unemployment






27. 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.






28. Periodic and predictable economic changes






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






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






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






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






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






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






35. 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






36. All investment spending by government and business firms






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


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






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






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






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






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






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






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






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






46. 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






47. 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






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






49. The sale of goods and services to households






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