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






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






3. 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)






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






5. The average of all prices is falling






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






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






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






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


10. The sale of goods and services to households






11. 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






12. Recurrent ups and downs of economic activity






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






14. 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






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






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






17. Cost of living allowance






18. GDP = C + Ig + G + Xn






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






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






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






23. 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






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






25. Frictional + structural unemployment






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






27. Temporary and associated with turnover in the labor market






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






29. Personal income less income taxes






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






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






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






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






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






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






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






37. Periodic and predictable economic changes






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






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






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






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






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






43. Maximum output of business cycle






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. Output measured at base year prices - and thus adjusted






46. Monetary






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






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






49. Inflation caused by excess demand in the economy






50. Output sacrificed due to unemployment