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






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






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






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






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






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






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






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






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






10. 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






11. Output sacrificed due to unemployment






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






13. Consumption - investment - government - and net exports






14. 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






15. The sale of goods and services to households






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






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






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






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






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






21. Recurrent ups and downs of economic activity






22. 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)






23. Temporary and associated with turnover in the labor market






24. Periodic and predictable economic changes






25. Cost of living allowance






26. 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






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






28. The average of all prices is falling






29. 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






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






31. Maximum output of business cycle






32. Monetary






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






34. GDP = C + Ig + G + Xn






35. Cyclical unemployment is at 0






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






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






38. All investment spending by government and business firms






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






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






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






42. Personal income less income taxes






43. Frictional + structural unemployment






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






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






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






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


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






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






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