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






2. 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






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






4. All investment spending by government and business firms






5. 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






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






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






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






9. 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






10. Periodic and predictable economic changes






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






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






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






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






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






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






17. Temporary and associated with turnover in the labor market






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






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






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






21. The sale of goods and services to households






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






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






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






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






26. 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






27. Output sacrificed due to unemployment






28. Cost of living allowance






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






30. Personal income less income taxes






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






32. Frictional + structural unemployment






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






34. Consumption - investment - government - and net exports






35. The average of all prices is falling






36. Maximum output of business cycle






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






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






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






40. Recurrent ups and downs of economic activity






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






42. GDP = C + Ig + G + Xn






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






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






45. 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.






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






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






48. 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






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






50. 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)