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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. Maximum output of business cycle






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






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






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






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






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






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






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






9. 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)






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






11. Personal income less income taxes






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






13. Consumption - investment - government - and net exports






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






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






16. 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






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






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






19. Recurrent ups and downs of economic activity






20. 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






21. All investment spending by government and business firms






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






23. The sale of goods and services to households






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






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






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






27. Frictional + structural unemployment






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






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






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






31. Periodic and predictable economic changes






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






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






34. Cyclical unemployment is at 0






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






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






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






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






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






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






41. 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






42. GDP = C + Ig + G + Xn






43. Temporary and associated with turnover in the labor market






44. Monetary






45. Inflation caused by excess demand in the economy






46. 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






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






48. Output sacrificed due to unemployment






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






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