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






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






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






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






5. 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)






6. Cost of living allowance






7. All investment spending by government and business firms






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






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






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






11. 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






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






13. Consumption - investment - government - and net exports






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






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






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






17. 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






18. GDP = C + Ig + G + Xn






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






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






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






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






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






24. Inflation caused by excess demand in the economy






25. Monetary






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






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






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






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






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






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






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






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






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






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






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






37. 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






38. 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






39. The average of all prices is falling






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






41. Output sacrificed due to unemployment






42. Temporary and associated with turnover in the labor market






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






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






45. Personal income less income taxes






46. The sale of goods and services to households






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






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






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






50. Frictional + structural unemployment