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






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






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






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






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






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






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






8. The average of all prices is falling






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






10. 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)






11. The sale of goods and services to households






12. Personal income less income taxes






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






14. Maximum output of business cycle






15. Monetary






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






17. Cost of living allowance






18. GDP = C + Ig + G + Xn






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






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






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






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






23. Output sacrificed due to unemployment






24. Frictional + structural unemployment






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






26. 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.






27. 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






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






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






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






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






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






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






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






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






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






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






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






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






40. 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






41. Cyclical unemployment is at 0






42. 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






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






44. 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






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






46. Temporary and associated with turnover in the labor market






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






48. Consumption - investment - government - and net exports






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

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