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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. 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






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






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






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






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






6. Cost of living allowance






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






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






9. Frictional + structural unemployment






10. Temporary and associated with turnover in the labor market






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






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






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






14. 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






15. 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






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






17. The sale of goods and services to households






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






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






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






21. Monetary






22. GDP = C + Ig + G + Xn






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






24. Output sacrificed due to unemployment






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






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






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






28. Personal income less income taxes






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






30. Maximum output of business cycle






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






32. 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






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






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






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






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






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






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






39. 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)






40. Consumption - investment - government - and net exports






41. Recurrent ups and downs of economic activity






42. The average of all prices is falling






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






44. All investment spending by government and business firms






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






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






47. Periodic and predictable economic changes






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






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