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






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






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






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






5. The sale of goods and services to households






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






7. All investment spending by government and business firms






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






9. Recurrent ups and downs of economic activity






10. Output sacrificed due to unemployment






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






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






13. 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






14. Cyclical unemployment is at 0






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






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






17. Temporary and associated with turnover in the labor market






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






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






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






21. Cost of living allowance






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






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






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






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






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






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






28. Personal income less income taxes






29. 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






30. GDP = C + Ig + G + Xn






31. Periodic and predictable economic changes






32. 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






33. 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






34. 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






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






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






37. 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)






38. Frictional + structural unemployment






39. The average of all prices is falling






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






41. Inflation caused by excess demand in the economy






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






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






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






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






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






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






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






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






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