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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. Cyclical unemployment is at 0






2. 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






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






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






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






7. The average of all prices is falling






8. Monetary






9. 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






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






11. 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)






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






13. All investment spending by government and business firms






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






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






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






17. Maximum output of business cycle






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






19. Cost of living allowance






20. Recurrent ups and downs of economic activity






21. Temporary and associated with turnover in the labor market






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






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






24. GDP = C + Ig + G + Xn






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






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






27. 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






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






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






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






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






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






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


34. 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






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






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






37. The sale of goods and services to households






38. Consumption - investment - government - and net exports






39. Personal income less income taxes






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






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






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






43. Frictional + structural unemployment






44. Periodic and predictable economic changes






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






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






47. Inflation caused by excess demand in the economy






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






49. Output sacrificed due to unemployment






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