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






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






3. Output sacrificed due to unemployment






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






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






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






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






8. Monetary






9. 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






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






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






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






13. Personal income less income taxes






14. Cost of living allowance






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






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






17. 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






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






19. Maximum output of business cycle






20. Periodic and predictable economic changes






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






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






23. GDP = C + Ig + G + Xn






24. Recurrent ups and downs of economic activity






25. Frictional + structural unemployment






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






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






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






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






30. All investment spending by government and business firms






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






33. Cyclical unemployment is at 0






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






35. Consumption - investment - government - and net exports






36. Inflation caused by excess demand in the economy






37. 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.






38. The average of all prices is falling






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






40. 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






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






42. The sale of goods and services to households






43. 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






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






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






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






47. 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)






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






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






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