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






3. 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






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






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






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






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

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8. Maximum output of business cycle






9. Personal income less income taxes






10. 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






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






12. Inflation caused by excess demand in the economy






13. Periodic and predictable economic changes






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






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






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






17. Recurrent ups and downs of economic activity






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






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






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






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






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






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






24. 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.






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






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






27. Output sacrificed due to unemployment






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






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






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






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






32. All investment spending by government and business firms






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






34. Cyclical unemployment is at 0






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






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






37. Temporary and associated with turnover in the labor market






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






39. GDP = C + Ig + G + Xn






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






41. Consumption - investment - government - and net exports






42. The average of all prices is falling






43. 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






44. 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






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






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






47. Frictional + structural unemployment






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






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






50. 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)