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






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






4. Cyclical unemployment is at 0






5. Inflation caused by excess demand in the economy






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






7. 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.






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






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






10. Frictional + structural unemployment






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






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






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






14. 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






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






16. GDP = C + Ig + G + Xn






17. Recurrent ups and downs of economic activity






18. Consumption - investment - government - and net exports






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






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






21. Periodic and predictable economic changes






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






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






24. Personal income less income taxes






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






26. The average of all prices is falling






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






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






29. Cost of living allowance






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






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






32. Output sacrificed due to unemployment






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






34. All investment spending by government and business firms






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






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






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


38. Monetary






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






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






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






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






43. 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






44. 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






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






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






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






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






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






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