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






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






3. Frictional + structural unemployment






4. Personal income less income taxes






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






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






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






8. Cost of living allowance






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






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






11. Monetary






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






13. All investment spending by government and business firms






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






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






16. 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)






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






18. Consumption - investment - government - and net exports






19. Output sacrificed due to unemployment






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






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






22. Maximum output of business cycle






23. GDP = C + Ig + G + Xn






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






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






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






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


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






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






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






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






32. 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






33. The sale of goods and services to households






34. Periodic and predictable economic changes






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






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






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






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






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






40. Inflation caused by excess demand in the economy






41. 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






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






43. Temporary and associated with turnover in the labor market






44. 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






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






46. 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






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






48. 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.






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






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