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






2. 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.






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






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






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






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






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


8. Recurrent ups and downs of economic activity






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






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






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






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






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






14. Temporary and associated with turnover in the labor market






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






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






17. Personal income less income taxes






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






19. The average of all prices is falling






20. GDP = C + Ig + G + Xn






21. Inflation caused by excess demand in the economy






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






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






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






25. 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






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






27. Measures the prices of a fixed market basket of over 300 consumer goods and services purchased by the typical urban consumer






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






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






30. Cyclical unemployment is at 0






31. Cost of living allowance






32. Periodic and predictable economic changes






33. All investment spending by government and business firms






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






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






36. 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






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






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






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






41. Maximum output of business cycle






42. 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






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






44. The sale of goods and services to households






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






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






47. Monetary






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






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






50. Consumption - investment - government - and net exports