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






2. 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






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






4. Personal income less income taxes






5. Monetary






6. Cost of living allowance






7. Inflation caused by excess demand in the economy






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






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






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






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






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






13. 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.






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






15. Maximum output of business cycle






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






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






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






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






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






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






22. 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






23. GDP = C + Ig + G + Xn






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






25. The average of all prices is falling






26. Temporary and associated with turnover in the labor market






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






28. Cyclical unemployment is at 0






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






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






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






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






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






34. 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






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


36. Output sacrificed due to unemployment






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






38. Consumption - investment - government - and net exports






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






40. Recurrent ups and downs of economic activity






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






42. Frictional + structural unemployment






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






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






46. The sale of goods and services to households






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






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






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






50. All investment spending by government and business firms