Test your basic knowledge |

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






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






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






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






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






6. GDP = C + Ig + G + Xn






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






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






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






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






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






12. 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






13. 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.






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






15. Recurrent ups and downs of economic activity






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






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






18. Maximum output of business cycle






19. Periodic and predictable economic changes






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






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






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






23. All investment spending by government and business firms






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






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






26. The average of all prices is falling






27. 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






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






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






30. 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






31. Inflation caused by excess demand in the economy






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






33. Output sacrificed due to unemployment






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






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






36. Consumption - investment - government - and net exports






37. Cost of living allowance






38. The sale of goods and services to households






39. 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






40. Monetary






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






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






43. Temporary and associated with turnover in the labor market






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






45. Personal income less income taxes






46. 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)






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






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






49. 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






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