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Test your basic knowledge |
CLEP Macroeconomics: Measurement Of Economic Performance
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Study First
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. Cost of living allowance
frictional unemployment
COLA
net export expenditures
trough
2. (base year basket valued at current year prices/base year basket valued at base year prices) x 100
deflation
consumption expenditures
CPI equation
seasonal unemployment
3. 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
CPI equation
trough
labor force
Gross National Product (GNP)
4. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories
expansion / recovery
unemployment rate
civilian labor force
three kinds of Ig expenditures
5. All people who are either employed or unemployed - but excludes people who are institutionalized or in the military
rule of 70
national income accounting
personal income
civilian labor force
6. Measures the prices of a fixed market basket of over 300 consumer goods and services purchased by the typical urban consumer
peak
Okun's Law
Consumer Price Index (CPI)
real GDP
7. For every 1% the actual unemployment rate exceeds the natural (frictional + structural) unemployment rate - a 2.5% GDP gap occurs
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8. Maximum output of business cycle
structural unemployment
labor force
peak
GDP Price Index
9. Personal income less income taxes
business cycle
unemployed
net export expenditures
disposable income
10. 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
cyclical / deficit demand unemployment
GDP (Gross Domestic Product)
price index
Consumer Price Index (CPI)
11. The number of dollars one receives as wages - rent - interest or profit
nominal GDP
nominal income
Consumer Price Index (CPI)
inflation
12. Inflation caused by excess demand in the economy
GDP gap
demand pull
rule of 70
full employment
13. Periodic and predictable economic changes
national income accounting
recession
seasonal changes
disposable income
14. Those who are on ______ incomes are hurt most by inflation
real GDP
Consumer Price Index (CPI)
nominal income
fixed income
15. Total income earned by resource suppliers for their contributions to the production of the GNP
national income
natural employment
intermediate goods
GDP Price Index
16. A sustained rise in the general price level of an economy
intermediate goods
inflation
GDP (Gross Domestic Product)
GDP equation (expenditure approach)
17. Recurrent ups and downs of economic activity
real GDP
GDP measures the market value of annual output and it is a __________ measure.
business cycle
income approach
18. Phase of the business cycle where output and employment are at their lowest levels
COLA
trough
CPI equation
seasonal changes
19. Measures the amount of goods and services one's money can buy; measures purchasing power
national income accounting
real income
four kinds of spending
GDI equation
20. Those that are used to produce other goods that will eventually be sold (miller sells flour to a baker); not counted in GDP
business cycle
GDP (Gross Domestic Product)
price index
intermediate goods
21. The percentage of unemployed workers in the civilian labor force
GDI equation
five sources of income
consumption expenditures
unemployment rate
22. GDI = w + i + r + pi + misc
trough
unemployment rate
expenditure approach
GDI equation
23. Excess unemployment caused because the economy deviates from the long run output potential of the economy
GDP gap
cyclical / deficit demand unemployment
full employment
government expenditures
24. 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.
business cycle
deflation
how to determine GDP
national income accounting
25. Phase of the business cycle where output and employment begin to move toward full employment
disposable income
seasonal unemployment
expansion / recovery
expenditure approach
26. Second-hand sales (goods not produced that year) and financial transactions (moving money from x to y); not counted in GDP
non-production transactions
nominal GDP
frictional unemployment
full employment
27. Output sacrificed due to unemployment
demand pull
expenditure approach
GDP gap
cost push
28. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP
net export expenditures
business cycle
unemployed
final goods
29. Results from laborers having a mismatched skill set with what is demanded by the current labor market
structural unemployment
business cycle
COLA
largest category of GDI
30. A person who is available for and looking for work - but has none
business cycle
seasonal unemployment
largest category of GDI
unemployed
31. Measures national income as the sum of the incomes received by productive resources in the economy; also called Gross Domestic Income (GDI)
peak
income approach
nominal GDP
government expenditures
32. All investment spending by government and business firms
gross investment expenditures
frictional unemployment
four kinds of spending
CPI equation
33. All people living in a society who are of legal age to work
labor force
national income accounting
net export expenditures
price index
34. Cyclical unemployment is at 0
Okun's Law
full employment
price index
demand pull
35. Output measured at current prices - and thus unadjusted figure for GDP
natural employment
inflation
nominal GDP
consumption expenditures
36. Government purchase of goods and services; does not include transfer payments and expenditures for servicing the national debt or investment goods
gross investment expenditures
government expenditures
unemployment rate
CPI equation
37. Temporary and associated with turnover in the labor market
frictional unemployment
Gross National Product (GNP)
gross investment expenditures
consumption expenditures
38. Allows us to keep tabs on the economic health of society and to develop policies that will improve that health
real GDP
full employment
national income accounting
disposable income
39. GDP = C + Ig + G + Xn
nominal income
price index
GDP equation (expenditure approach)
rule of 70
40. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance
cyclical / deficit demand unemployment
largest category of GDI
inflation
expansion / recovery
41. Consumption - investment - government - and net exports
Gross National Product (GNP)
national income
four kinds of spending
expansion / recovery
42. The average of all prices is falling
circular flow diagram
labor force
final goods
deflation
43. 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
real GDP
GDP Price Index
participation rate
five sources of income
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
personal income
GDP gap
recession
demand pull
45. The civilian labor force expressed as a percentage of the labor force population
disposable income
participation rate
fixed income
GDP equation (expenditure approach)
46. A basic accounting measure of total production of goods and services of the national economy in one year
largest category of GDI
labor force
GDP (Gross Domestic Product)
GDP gap
47. Frictional + structural unemployment
national income
GDP measures the market value of annual output and it is a __________ measure.
how to determine GDP
natural employment
48. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions
disposable income
four kinds of spending
seasonal unemployment
GDP Price Index
49. (1) wages - (2) rents - (3) profits - (4) interest - (5) misc
cyclical / deficit demand unemployment
five sources of income
deflation
Consumer Price Index (CPI)
50. 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)
disposable income
expenditure approach
peak
seasonal changes