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






2. All investment spending by government and business firms






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






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






5. Recurrent ups and downs of economic activity






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






7. Consumption - investment - government - and net exports






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






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






10. Personal income less income taxes






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






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






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






14. 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






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






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






17. Cost of living allowance






18. 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)






19. 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






20. Maximum output of business cycle






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






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






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






24. The average of all prices is falling






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






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






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






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






29. GDP = C + Ig + G + Xn






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


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






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






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






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






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






36. Frictional + structural unemployment






37. Output sacrificed due to unemployment






38. 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.






39. Monetary






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






41. Temporary and associated with turnover in the labor market






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






43. Inflation caused by excess demand in the economy






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






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






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






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






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






49. Periodic and predictable economic changes






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