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






2. Output sacrificed due to unemployment






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






4. GDP = C + Ig + G + Xn






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






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






7. All investment spending by government and business firms






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






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


10. Consumption - investment - government - and net exports






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






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






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






14. 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






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






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






17. Maximum output of business cycle






18. The sale of goods and services to households






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






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






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






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






23. 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






24. Inflation caused by excess demand in the economy






25. Frictional + structural unemployment






26. Cyclical unemployment is at 0






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






28. Recurrent ups and downs of economic activity






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






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






31. Periodic and predictable economic changes






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






33. 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)






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






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






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






37. 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






38. Temporary and associated with turnover in the labor market






39. 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






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






41. Monetary






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. The percentage of unemployed workers in the civilian labor force






44. Cost of living allowance






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






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






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






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






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






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