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






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






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






4. Output sacrificed due to unemployment






5. 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






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






7. Temporary and associated with turnover in the labor market






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






9. Cost of living allowance






10. Recurrent ups and downs of economic activity






11. The average of all prices is falling






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






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






14. Inflation caused by excess demand in the economy






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






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






17. GDP = C + Ig + G + Xn






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






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






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






21. Periodic and predictable economic changes






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






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






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






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


26. Frictional + structural unemployment






27. Monetary






28. 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)






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






30. 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.






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






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






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






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






35. The sale of goods and services to households






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






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






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






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. All investment spending by government and business firms






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






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






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






44. Cyclical unemployment is at 0






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






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






47. Personal income less income taxes






48. Consumption - investment - government - and net exports






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






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