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






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






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






4. All investment spending by government and business firms






5. Consumption - investment - government - and net exports






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






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






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






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






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






11. Temporary and associated with turnover in the labor market






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


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






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






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






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






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






18. 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)






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






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






21. Personal income less income taxes






22. Maximum output of business cycle






23. 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






24. Cyclical unemployment is at 0






25. The average of all prices is falling






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






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






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






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






30. The sale of goods and services to households






31. Recurrent ups and downs of economic activity






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






33. 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.






34. 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






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






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






37. Inflation caused by excess demand in the economy






38. 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






39. Cost of living allowance






40. Frictional + structural unemployment






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






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






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






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






45. 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






46. 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






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






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






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






50. Monetary