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






2. Consumption - investment - government - and net exports






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






4. Output sacrificed due to unemployment






5. Cost of living allowance






6. Periodic and predictable economic changes






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






8. Cyclical unemployment is at 0






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






10. 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)






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






12. Frictional + structural unemployment






13. Recurrent ups and downs of economic activity






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






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






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






18. 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.






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






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






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






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






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






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






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






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






27. 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






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






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






30. 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






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






32. The average of all prices is falling






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






34. Temporary and associated with turnover in the labor market






35. The sale of goods and services to households






36. GDP = C + Ig + G + Xn






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






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






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






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






41. Maximum output of business cycle






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






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






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






45. All investment spending by government and business firms






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






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


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






49. 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






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