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Test your basic knowledge |

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






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






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






4. GDP = C + Ig + G + Xn






5. Cost of living allowance






6. 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






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






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






9. 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.






10. 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






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






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






13. Frictional + structural unemployment






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






15. Output sacrificed due to unemployment






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






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






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






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






20. All investment spending by government and business firms






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






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






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






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






25. 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)






26. The average of all prices is falling






27. 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






28. 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






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






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






31. Periodic and predictable economic changes






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






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






34. Inflation caused by excess demand in the economy






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






36. Consumption - investment - government - and net exports






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






38. The sale of goods and services to households






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






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






41. Personal income less income taxes






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






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






44. Monetary






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


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






47. Maximum output of business cycle






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






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






50. Temporary and associated with turnover in the labor market






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