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






3. Monetary






4. Frictional + structural unemployment






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






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






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






8. Maximum output of business cycle






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






10. 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)






11. 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






12. 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






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






14. Consumption - investment - government - and net exports






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






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






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


18. Cost of living allowance






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






20. GDP = C + Ig + G + Xn






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






22. Periodic and predictable economic changes






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






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






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






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






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






28. The average of all prices is falling






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






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






31. 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






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






33. Recurrent ups and downs of economic activity






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






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






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






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






38. Temporary and associated with turnover in the labor market






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






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






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






42. Cyclical unemployment is at 0






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






44. The sale of goods and services to households






45. 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.






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






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






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






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






50. All investment spending by government and business firms