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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. Cost of living allowance






2. 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






3. Consumption - investment - government - and net exports






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






5. Periodic and predictable economic changes






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






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






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






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






10. GDP = C + Ig + G + Xn






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






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






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






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






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






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






18. 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






19. Maximum output of business cycle






20. 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.






21. Personal income less income taxes






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






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






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


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






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






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






28. Cyclical unemployment is at 0






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






30. 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)






31. Temporary and associated with turnover in the labor market






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






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






34. The sale of goods and services to households






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






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






37. 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






38. The average of all prices is falling






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






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






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






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






43. All investment spending by government and business firms






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






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






46. Recurrent ups and downs of economic activity






47. Output sacrificed due to unemployment






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






49. Monetary






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