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






2. The average of all prices is falling






3. Cyclical unemployment is at 0






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






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






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






7. Frictional + structural unemployment






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






9. The sale of goods and services to households






10. Temporary and associated with turnover in the labor market






11. Consumption - investment - government - and net exports






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






13. 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)






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






15. Inflation caused by excess demand in the economy






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






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


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






19. 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.






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






21. Maximum output of business cycle






22. 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






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






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






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






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






27. Personal income less income taxes






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






29. 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






30. Cost of living allowance






31. 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






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






33. GDP = C + Ig + G + Xn






34. Recurrent ups and downs of economic activity






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






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






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






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






39. Output sacrificed due to unemployment






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






41. Periodic and predictable economic changes






42. 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






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






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






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






46. Monetary






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






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






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






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