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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. 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






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






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






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






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






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






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






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






9. Cyclical unemployment is at 0






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






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






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






13. 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






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






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


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






17. 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






18. Inflation caused by excess demand in the economy






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






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






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






22. Personal income less income taxes






23. Monetary






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






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






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






27. 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






28. Periodic and predictable economic changes






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






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






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






32. Frictional + structural unemployment






33. The average of all prices is falling






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






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






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






37. Cost of living allowance






38. GDP = C + Ig + G + Xn






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






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






41. Consumption - investment - government - and net exports






42. All investment spending by government and business firms






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






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






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






46. Recurrent ups and downs of economic activity






47. The sale of goods and services to households






48. Temporary and associated with turnover in the labor market






49. 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.






50. Output sacrificed due to unemployment