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