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