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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. Inflation caused by excess demand in the economy






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






3. The average of all prices is falling






4. Monetary






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






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






7. Cyclical unemployment is at 0






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






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






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






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






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






13. 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






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






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






16. 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.






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






18. Personal income less income taxes






19. The sale of goods and services to households






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






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






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






23. 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)






24. Frictional + structural unemployment






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






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






27. Maximum output of business cycle






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






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






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. Output sacrificed due to unemployment






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






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






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






35. 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






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






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






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






39. All investment spending by government and business firms






40. Consumption - investment - government - and net exports






41. 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






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






43. GDP = C + Ig + G + Xn






44. Periodic and predictable economic changes






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






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






47. Temporary and associated with turnover in the labor market






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






49. Cost of living allowance






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