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






3. Recurrent ups and downs of economic activity






4. 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)






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






6. 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






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






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






9. Consumption - investment - government - and net exports






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






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






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






13. 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






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






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






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






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






18. Frictional + structural unemployment






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






20. Output sacrificed due to unemployment






21. 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






22. The sale of goods and services to households






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






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






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






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






27. All investment spending by government and business firms






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






29. Cost of living allowance






30. The average of all prices is falling






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






32. Inflation caused by excess demand in the economy






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






34. GDP = C + Ig + G + Xn






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






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






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






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






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






40. Periodic and predictable economic changes






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






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






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






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






45. Personal income less income taxes






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






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


48. 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






49. 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.






50. Maximum output of business cycle