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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. GDP = C + Ig + G + Xn






2. Periodic and predictable economic changes






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






4. Frictional + structural unemployment






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






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






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






8. 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






9. Recurrent ups and downs of economic activity






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






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






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






13. All investment spending by government and business firms






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






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






16. Monetary






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






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






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






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






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






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






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






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






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






26. Inflation caused by excess demand in the economy






27. 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






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






29. 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






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






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






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


33. Personal income less income taxes






34. Cyclical unemployment is at 0






35. 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






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






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






38. 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.






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






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






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






42. Output sacrificed due to unemployment






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






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






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






46. Consumption - investment - government - and net exports






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






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






49. Maximum output of business cycle






50. The sale of goods and services to households