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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. 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






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






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






4. Output sacrificed due to unemployment






5. Cost of living allowance






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






7. Recurrent ups and downs of economic activity






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






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






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






11. 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






12. The sale of goods and services to households






13. 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






14. Consumption - investment - government - and net exports






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






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






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






18. GDP = C + Ig + G + Xn






19. Inflation caused by excess demand in the economy






20. Temporary and associated with turnover in the labor market






21. 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)






22. Personal income less income taxes






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






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






25. Frictional + structural unemployment






26. Cyclical unemployment is at 0






27. All investment spending by government and business firms






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






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






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






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






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






33. 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.






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






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






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






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






38. The average of all prices is falling






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






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






41. 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






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






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






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






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






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






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






48. Monetary






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






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