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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. The sale of goods and services to households






2. Frictional + structural unemployment






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






4. Recurrent ups and downs of economic activity






5. 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






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






7. Monetary






8. Consumption - investment - government - and net exports






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






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






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






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






13. GDP = C + Ig + G + Xn






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






15. Periodic and predictable economic changes






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






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






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


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






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






21. Output sacrificed due to unemployment






22. 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.






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






24. 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






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






26. Maximum output of business cycle






27. Cyclical unemployment is at 0






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






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






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






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






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






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






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






35. Inflation caused by excess demand in the economy






36. Personal income less income taxes






37. All investment spending by government and business firms






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






39. 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






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






41. Cost of living allowance






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






43. The average of all prices is falling






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






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






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






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






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






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






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