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






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






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






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






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






6. Cost of living allowance






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






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






9. Recurrent ups and downs of economic activity






10. Monetary






11. Consumption - investment - government - and net exports






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






13. Frictional + structural unemployment






14. Inflation caused by excess demand in the economy






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






16. 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






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






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






19. 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






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






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






22. The sale of goods and services to households






23. Temporary and associated with turnover in the labor market






24. All investment spending by government and business firms






25. GDP = C + Ig + G + Xn






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






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






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






29. Personal income less income taxes






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






31. 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)






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






33. 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






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






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






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






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






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






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






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






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






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






43. Cyclical unemployment is at 0






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






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






46. 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






47. The average of all prices is falling






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


49. Maximum output of business cycle






50. 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.