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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. Frictional + structural unemployment






3. Cost of living allowance






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






5. GDP = C + Ig + G + Xn






6. Personal income less income taxes






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






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






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






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






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






12. The sale of goods and services to households






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






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






15. Temporary and associated with turnover in the labor market






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






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






18. Periodic and predictable economic changes






19. Cyclical unemployment is at 0






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






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






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


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






24. 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






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






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






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






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






29. The average of all prices is falling






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






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






32. Monetary






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






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






35. 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






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






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






38. 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)






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






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






41. All investment spending by government and business firms






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






43. Maximum output of business cycle






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






45. Consumption - investment - government - and net exports






46. Output sacrificed due to unemployment






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






48. Inflation caused by excess demand in the economy






49. 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






50. Recurrent ups and downs of economic activity