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






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






3. 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






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






5. 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






6. 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






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






8. Maximum output of business cycle






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






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






11. Cyclical unemployment is at 0






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






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






14. Output sacrificed due to unemployment






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






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






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






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






19. Inflation caused by excess demand in the economy






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






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






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






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






24. Cost of living allowance






25. The average of all prices is falling






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






27. Frictional + structural unemployment






28. 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






29. GDP = C + Ig + G + Xn






30. Monetary






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






32. Personal income less income taxes






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






34. Recurrent ups and downs of economic activity






35. 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.






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






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






38. 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)






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






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






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






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






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






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






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






46. Consumption - investment - government - and net exports






47. Temporary and associated with turnover in the labor market






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






49. The sale of goods and services to households






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