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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. Cyclical unemployment is at 0






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






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






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






5. Output sacrificed due to unemployment






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






7. 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






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






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






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






11. Recurrent ups and downs of economic activity






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






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






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






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






16. 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)






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






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






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






20. Inflation caused by excess demand in the economy






21. Periodic and predictable economic changes






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






23. 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






24. Monetary






25. All investment spending by government and business firms






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






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






28. Consumption - investment - government - and net exports






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






30. The average of all prices is falling






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






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






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






34. Personal income less income taxes






35. 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






36. Maximum output of business cycle






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






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






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






41. 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






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






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






44. The sale of goods and services to households






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






46. Frictional + structural unemployment






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






48. Temporary and associated with turnover in the labor market






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






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