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






2. Cost of living allowance






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






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






5. Monetary






6. Cyclical unemployment is at 0






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






8. Inflation caused by excess demand in the economy






9. The average of all prices is falling






10. 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






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






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






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






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






15. Maximum output of business cycle






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






17. Temporary and associated with turnover in the labor market






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






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






20. GDP = C + Ig + G + Xn






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






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






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






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






25. 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






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






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






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






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






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






31. All investment spending by government and business firms






32. Periodic and predictable economic changes






33. 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






34. Output sacrificed due to unemployment






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






36. 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






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






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






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






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






41. Consumption - investment - government - and net exports






42. Frictional + structural unemployment






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






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






45. The sale of goods and services to households






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






47. 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.






48. Personal income less income taxes






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






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