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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. Personal income less income taxes






2. Periodic and predictable economic changes






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






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






5. Inflation caused by excess demand in the economy






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






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






8. The average of all prices is falling






9. Frictional + structural unemployment






10. 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






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






12. The sale of goods and services to households






13. Monetary






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






15. Recurrent ups and downs of economic activity






16. 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)






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






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






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






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






21. 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






22. Consumption - investment - government - and net exports






23. Output sacrificed due to unemployment






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






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






26. 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






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






28. Maximum output of business cycle






29. 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.






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






31. Temporary and associated with turnover in the labor market






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






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






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






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






36. All investment spending by government and business firms






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






38. GDP = C + Ig + G + Xn






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






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






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






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






43. 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






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






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






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






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


48. Cost of living allowance






49. 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






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