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






2. The average of all prices is falling






3. 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.






4. Consumption - investment - government - and net exports






5. 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






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






7. 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






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






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






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






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






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






13. GDP = C + Ig + G + Xn






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






15. The sale of goods and services to households






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






17. Output sacrificed due to unemployment






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






19. 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






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






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






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






23. Inflation caused by excess demand in the economy






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






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






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






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






28. Personal income less income taxes






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






30. Monetary






31. 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






32. 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)






33. Temporary and associated with turnover in the labor market






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






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






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






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






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






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






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






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






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






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






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






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






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


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






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






49. 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






50. Frictional + structural unemployment