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






2. 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






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






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






5. 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






6. 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)






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






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






10. Cyclical unemployment is at 0






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






12. The sale of goods and services to households






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






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






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






16. Maximum output of business cycle






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






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






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






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






21. Inflation caused by excess demand in the economy






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






23. Temporary and associated with turnover in the labor market






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






25. Personal income less income taxes






26. Recurrent ups and downs of economic activity






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






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


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






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






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






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






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






34. Output sacrificed due to unemployment






35. Frictional + structural unemployment






36. GDP = C + Ig + G + Xn






37. Monetary






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






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






40. Periodic and predictable economic changes






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






42. 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






43. The average of all prices is falling






44. Consumption - investment - government - and net exports






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






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






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






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






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






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