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






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






3. Inflation caused by excess demand in the economy






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






5. Consumption - investment - government - and net exports






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






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






8. Recurrent ups and downs of economic activity






9. 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)






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






11. Frictional + structural unemployment






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






13. Maximum output of business cycle






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






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






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






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






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






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






20. Periodic and predictable economic changes






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






22. The average of all prices is falling






23. Output sacrificed due to unemployment






24. 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






25. 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






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






27. All investment spending by government and business firms






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






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






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






31. 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






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






33. 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






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






35. GDP = C + Ig + G + Xn






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






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






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






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






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






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






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






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






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


45. 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






46. Cyclical unemployment is at 0






47. Monetary






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






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






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