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Test your basic knowledge |

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






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






4. Cost of living allowance






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






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






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






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






9. 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






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






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






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






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






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






15. Frictional + structural unemployment






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






17. Inflation caused by excess demand in the economy






18. Consumption - investment - government - and net exports






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






20. Cyclical unemployment is at 0






21. Periodic and predictable economic changes






22. 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






23. 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






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






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






26. Recurrent ups and downs of economic activity






27. The average of all prices is falling






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






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






30. 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






31. Maximum output of business cycle






32. All investment spending by government and business firms






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






34. Personal income less income taxes






35. Monetary






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






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


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






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






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






41. Output sacrificed due to unemployment






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






43. 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)






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






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






46. 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






47. 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.






48. The sale of goods and services to households






49. GDP = C + Ig + G + Xn






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






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