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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. Consumption - investment - government - and net exports






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






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






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






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






6. Cyclical unemployment is at 0






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






8. 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






9. Frictional + structural unemployment






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


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






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






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






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






15. 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)






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






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






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






19. Cost of living allowance






20. Inflation caused by excess demand in the economy






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






22. The sale of goods and services to households






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






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






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






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






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






28. 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






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






30. 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






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






32. 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.






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






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






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






36. Periodic and predictable economic changes






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. Maximum output of business cycle






40. Output sacrificed due to unemployment






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






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






43. GDP = C + Ig + G + Xn






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. All investment spending by government and business firms






46. The average of all prices is falling






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






48. Recurrent ups and downs of economic activity






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






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