Test your basic knowledge |

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. Monetary






2. 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






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






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






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






6. Maximum output of business cycle






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






8. Cyclical unemployment is at 0






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






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






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






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






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






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






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






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






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






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






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






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






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






24. 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.






25. The average of all prices is falling






26. Temporary and associated with turnover in the labor market






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






28. Consumption - investment - government - and net exports






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






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






31. Frictional + structural unemployment






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






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






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






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






36. The sale of goods and services to households






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






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






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






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






42. 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






43. Recurrent ups and downs of economic activity






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






45. Output sacrificed due to unemployment






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






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






50. GDP = C + Ig + G + Xn