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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 arising from the supply or cost side of the economy






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






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






4. Consumption - investment - government - and net exports






5. Personal income less income taxes






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






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






8. Output sacrificed due to unemployment






9. 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






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






11. 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






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






13. Cost of living allowance






14. All investment spending by government and business firms






15. Frictional + structural unemployment






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






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


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






19. Monetary






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






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






22. Inflation caused by excess demand in the economy






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






24. Recurrent ups and downs of economic activity






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






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






27. Cyclical unemployment is at 0






28. Maximum output of business cycle






29. 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






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






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






32. 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






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






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






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






36. 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.






37. The average of all prices is falling






38. The sale of goods and services to households






39. 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






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






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






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






43. Temporary and associated with turnover in the labor market






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






45. Periodic and predictable economic changes






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






47. 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)






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






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






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