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






2. The sale of goods and services to households






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






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






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






6. Inflation caused by excess demand in the economy






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






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


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






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






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






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






13. Frictional + structural unemployment






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






15. Periodic and predictable economic changes






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






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






18. The average of all prices is falling






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






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






21. 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






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






23. Cyclical unemployment is at 0






24. 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






25. All investment spending by government and business firms






26. 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






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






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. Maximum output of business cycle






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






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






32. Temporary and associated with turnover in the labor market






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






34. Consumption - investment - government - and net exports






35. 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.






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






37. 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)






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






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






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






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






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






43. Cost of living allowance






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






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






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






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






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






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






50. Output sacrificed due to unemployment