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CLEP Macroeconomics: Measurement Of Economic Performance

Subjects : clep, economics
  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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. Those that are used to produce other goods that will eventually be sold (miller sells flour to a baker); not counted in GDP

2. The sale of goods and services to households

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

4. GDP = C + Ig + G + Xn

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

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

7. Consumption - investment - government - and net exports

8. 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

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

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

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

12. Maximum output of business cycle

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

14. 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.

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

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

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

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

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

20. 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

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

22. Periodic and predictable economic changes

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

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

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

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

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

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

29. The average of all prices is falling

30. 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)

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

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

33. Inflation caused by excess demand in the economy

34. Output sacrificed due to unemployment

35. Temporary and associated with turnover in the labor market

36. Recurrent ups and downs of economic activity

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

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

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

40. Frictional + structural unemployment

41. Monetary

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

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

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

45. Cost of living allowance

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

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

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

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

50. 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