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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. 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






2. All investment spending by government and business firms






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






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






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






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


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






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






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






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






11. The sale of goods and services to households






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






13. Temporary and associated with turnover in the labor market






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






15. 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






16. Personal income less income taxes






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






18. Output sacrificed due to unemployment






19. Inflation caused by excess demand in the economy






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






21. Cyclical unemployment is at 0






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






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






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






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






26. 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






27. 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.






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






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. GDP = C + Ig + G + Xn






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






32. Frictional + structural unemployment






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






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






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






36. Consumption - investment - government - and net exports






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






38. Recurrent ups and downs of economic activity






39. 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






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






41. Cost of living allowance






42. Monetary






43. The average of all prices is falling






44. 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






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






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






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






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






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






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