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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. 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)






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






3. Inflation caused by excess demand in the economy






4. The average of all prices is falling






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






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






7. 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.






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






9. 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






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






11. Cost of living allowance






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






13. Personal income less income taxes






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






15. 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






16. GDP = C + Ig + G + Xn






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






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






19. Monetary






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






21. 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






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






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






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






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






26. Output sacrificed due to unemployment






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






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






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






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






31. All investment spending by government and business firms






32. Maximum output of business cycle






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






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






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






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






37. Temporary and associated with turnover in the labor market






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






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






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






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






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


43. Recurrent ups and downs of economic activity






44. 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






45. Cyclical unemployment is at 0






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






47. The sale of goods and services to households






48. Consumption - investment - government - and net exports






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






50. Periodic and predictable economic changes