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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. The sale of goods and services to households






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






3. Personal income less income taxes






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






5. All investment spending by government and business firms






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






7. GDP = C + Ig + G + Xn






8. Periodic and predictable economic changes






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






10. The average of all prices is falling






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






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






13. 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






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. 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






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






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






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






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






20. 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)






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






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






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






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






25. Temporary and associated with turnover in the labor market






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






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






28. Frictional + structural unemployment






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






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






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






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






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


34. Maximum output of business cycle






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






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






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






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






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






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






42. Cyclical unemployment is at 0






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






44. Output sacrificed due to unemployment






45. Inflation caused by excess demand in the economy






46. 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






47. Recurrent ups and downs of economic activity






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






49. Monetary






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