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CLEP Macroeconomics: Measurement Of Economic Performance

Subjects : clep, economics
  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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. 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

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

3. Recurrent ups and downs of economic activity

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

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

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

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

8. Maximum output of business cycle

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

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

11. Periodic and predictable economic changes

12. All investment spending by government and business firms

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

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

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

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

17. Personal income less income taxes

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

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

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

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

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

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

24. Output sacrificed due to unemployment

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

26. Cost of living allowance

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

28. Frictional + structural unemployment

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

30. Inflation caused by excess demand in the economy

31. Temporary and associated with turnover in the labor market

32. 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

33. GDP = C + Ig + G + Xn

34. 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.

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

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

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

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

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

41. The average of all prices is falling

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

43. Consumption - investment - government - and net exports

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

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

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

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

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

49. 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

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