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






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






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






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






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






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






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






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






9. Temporary and associated with turnover in the labor market






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






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






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






13. Output sacrificed due to unemployment






14. 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.






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






16. Cyclical unemployment is at 0






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






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






19. All investment spending by government and business firms






20. 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)






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






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






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






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






25. The sale of goods and services to households






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






27. Recurrent ups and downs of economic activity






28. 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






29. 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






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






31. 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






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






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






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






35. Monetary






36. GDP = C + Ig + G + Xn






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






38. Cost of living allowance






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






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






41. The average of all prices is falling






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






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






44. Personal income less income taxes






45. 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






46. Frictional + structural unemployment






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






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






49. Consumption - investment - government - and net exports






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