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






2. Output sacrificed due to unemployment






3. Monetary






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






5. Frictional + structural unemployment






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






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






8. Maximum output of business cycle






9. Temporary and associated with turnover in the labor market






10. The average of all prices is falling






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






12. Periodic and predictable economic changes






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






14. 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)






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






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






17. The sale of goods and services to households






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






19. 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






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






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






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






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






24. 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






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






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






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






28. 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






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






30. Inflation caused by excess demand in the economy






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






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






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






34. 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






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


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






37. All investment spending by government and business firms






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






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






40. GDP = C + Ig + G + Xn






41. Cost of living allowance






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






43. Personal income less income taxes






44. 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.






45. Cyclical unemployment is at 0






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






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






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






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






50. 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