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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 percentage of unemployed workers in the civilian labor force






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






3. All investment spending by government and business firms






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






5. Output sacrificed due to unemployment






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






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






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






9. Recurrent ups and downs of economic activity






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






11. Temporary and associated with turnover in the labor market






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






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






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






15. Maximum output of business cycle






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






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






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






19. Inflation caused by excess demand in the economy






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






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






22. Personal income less income taxes






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






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






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


26. Frictional + structural unemployment






27. 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






28. The average of all prices is falling






29. 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






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






31. Periodic and predictable economic changes






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






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






34. The sale of goods and services to households






35. Consumption - investment - government - and net exports






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






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






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






39. Cost of living allowance






40. 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






41. Cyclical unemployment is at 0






42. 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.






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






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






45. 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)






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






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






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






49. GDP = C + Ig + G + Xn






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