Test your basic knowledge |

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. Consumption - investment - government - and net exports






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






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






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






5. 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






6. 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






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






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






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






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






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






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






13. Maximum output of business cycle






14. Temporary and associated with turnover in the labor market






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






16. Frictional + structural unemployment






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






18. Inflation caused by excess demand in the economy






19. The sale of goods and services to households






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






21. 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






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






23. 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






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






25. Cost of living allowance






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






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






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






29. Cyclical unemployment is at 0






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






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






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






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






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






35. GDP = C + Ig + G + Xn






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






37. Personal income less income taxes






38. The average of all prices is falling






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






40. Monetary






41. Output sacrificed due to unemployment






42. Periodic and predictable economic changes






43. Recurrent ups and downs of economic activity






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






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






46. 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






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






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


49. All investment spending by government and business firms






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