SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. Government purchase of goods and services; does not include transfer payments and expenditures for servicing the national debt or investment goods
GDP Price Index
business cycle
non-production transactions
government expenditures
2. Total income earned by resource suppliers for their contributions to the production of the GNP
seasonal changes
national income
seasonal unemployment
structural unemployment
3. For every 1% the actual unemployment rate exceeds the natural (frictional + structural) unemployment rate - a 2.5% GDP gap occurs
4. The civilian labor force expressed as a percentage of the labor force population
real GDP
seasonal unemployment
five sources of income
participation rate
5. Consumption - investment - government - and net exports
nominal GDP
four kinds of spending
price index
non-production transactions
6. Periodic and predictable economic changes
natural employment
seasonal changes
five sources of income
expenditure approach
7. All people living in a society who are of legal age to work
labor force
structural / expectational inflation
CPI equation
seasonal changes
8. Cost of living allowance
rule of 70
COLA
Gross National Product (GNP)
CPI equation
9. The total net sales of goods sold abroad minus the total net spent on purchases from other countries
intermediate goods
net export expenditures
fixed income
GDP Price Index
10. GDI = w + i + r + pi + misc
GDI equation
inflation
Okun's Law
deflation
11. Measures the amount of goods and services one's money can buy; measures purchasing power
real income
deflation
trough
Okun's Law
12. The sale of goods and services to households
structural / expectational inflation
five sources of income
consumption expenditures
inflation
13. All people who are either employed or unemployed - but excludes people who are institutionalized or in the military
civilian labor force
cost push
national income accounting
national income
14. Output measured at current prices - and thus unadjusted figure for GDP
structural / expectational inflation
nominal GDP
deflation
COLA
15. 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)
real income
price index
how to determine GDP
16. 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
gross investment expenditures
GDP Price Index
income approach
nominal income
17. Phase of the business cycle where output and employment are at their lowest levels
GDP gap
GDI equation
trough
unemployment rate
18. Income earned that is available to resource suppliers and others before payment of personal taxes
personal income
intermediate goods
labor force
GDI equation
19. 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)
rule of 70
four kinds of spending
expenditure approach
Gross National Product (GNP)
20. Cyclical unemployment is at 0
full employment
frictional unemployment
cyclical / deficit demand unemployment
natural employment
21. (base year basket valued at current year prices/base year basket valued at base year prices) x 100
GDP measures the market value of annual output and it is a __________ measure.
seasonal unemployment
peak
CPI equation
22. Inflation arising from the supply or cost side of the economy
GDP equation (expenditure approach)
cost push
Consumer Price Index (CPI)
how to determine GDP
23. 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
business cycle
participation rate
disposable income
rule of 70
24. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance
largest category of GDI
nominal GDP
national income accounting
national income
25. Output measured at base year prices - and thus adjusted
real income
COLA
real GDP
rule of 70
26. The average of all prices is falling
deflation
nominal GDP
seasonal changes
COLA
27. Monetary
trough
seasonal unemployment
GDP (Gross Domestic Product)
GDP measures the market value of annual output and it is a __________ measure.
28. A person who is available for and looking for work - but has none
labor force
unemployed
five sources of income
GDP Price Index
29. Phase of the business cycle where output and employment begin to move toward full employment
expansion / recovery
structural / expectational inflation
gross investment expenditures
final goods
30. Recurrent ups and downs of economic activity
business cycle
trough
structural / expectational inflation
COLA
31. Temporary and associated with turnover in the labor market
CPI equation
participation rate
recession
frictional unemployment
32. Second-hand sales (goods not produced that year) and financial transactions (moving money from x to y); not counted in GDP
full employment
non-production transactions
circular flow diagram
national income accounting
33. GDP = C + Ig + G + Xn
business cycle
participation rate
GDP equation (expenditure approach)
disposable income
34. A basic accounting measure of total production of goods and services of the national economy in one year
GDP equation (expenditure approach)
GDP (Gross Domestic Product)
structural unemployment
unemployed
35. Frictional + structural unemployment
participation rate
natural employment
personal income
gross investment expenditures
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
GDI equation
deflation
seasonal changes
price index
37. 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
structural unemployment
recession
peak
gross investment expenditures
38. The number of dollars one receives as wages - rent - interest or profit
GDI equation
nominal income
trough
civilian labor force
39. The percentage of unemployed workers in the civilian labor force
unemployment rate
how to determine GDP
unemployed
structural / expectational inflation
40. Those that are used to produce other goods that will eventually be sold (miller sells flour to a baker); not counted in GDP
five sources of income
unemployed
intermediate goods
labor force
41. Maximum output of business cycle
peak
inflation
GDP (Gross Domestic Product)
personal income
42. Shows how money and goods and services flow between the various markets and players in the economy
income approach
Consumer Price Index (CPI)
expenditure approach
circular flow diagram
43. A sustained rise in the general price level of an economy
three kinds of Ig expenditures
Okun's Law
inflation
final goods
44. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions
seasonal unemployment
income approach
national income accounting
Gross National Product (GNP)
45. Inflation caused by excess demand in the economy
labor force
largest category of GDI
consumption expenditures
demand pull
46. (1) wages - (2) rents - (3) profits - (4) interest - (5) misc
personal income
GDI equation
GDP equation (expenditure approach)
five sources of income
47. Output sacrificed due to unemployment
final goods
GDP gap
income approach
GDP measures the market value of annual output and it is a __________ measure.
48. Those who are on ______ incomes are hurt most by inflation
disposable income
expenditure approach
peak
fixed income
49. 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.
how to determine GDP
unemployed
largest category of GDI
full employment
50. 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
personal income
Gross National Product (GNP)
GDP gap
real income