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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. All investment spending by government and business firms






2. 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






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






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






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






6. 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






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






8. The sale of goods and services to households






9. Output sacrificed due to unemployment






10. 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)






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






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






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






14. GDP = C + Ig + G + Xn






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






16. Cyclical unemployment is at 0






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






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






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






20. Temporary and associated with turnover in the labor market






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






22. Personal income less income taxes






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






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






25. Monetary






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


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






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






29. Periodic and predictable economic changes






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






31. 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






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






33. Frictional + structural unemployment






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






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






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






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






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






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






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






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






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






43. The average of all prices is falling






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






45. 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






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






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






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






49. Cost of living allowance






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