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. 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






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






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






4. 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.






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






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






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






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






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






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






11. Recurrent ups and downs of economic activity






12. Personal income less income taxes






13. All investment spending by government and business firms






14. Cost of living allowance






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






16. Inflation caused by excess demand in the economy






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






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






19. 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






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






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






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






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






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






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






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






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






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






29. GDP = C + Ig + G + Xn






30. Consumption - investment - government - and net exports






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






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






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






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






35. The average of all prices is falling






36. 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






37. 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)






38. Monetary






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






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






41. Temporary and associated with turnover in the labor market






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






43. Frictional + structural unemployment






44. The sale of goods and services to households






45. Periodic and predictable economic changes






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






47. Output sacrificed due to unemployment






48. 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






49. Maximum output of business cycle






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