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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. Maximum output of business cycle






2. 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






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






4. Periodic and predictable economic changes






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






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






7. Cyclical unemployment is at 0






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






9. 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






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






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






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






13. GDP = C + Ig + G + Xn






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






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






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






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






18. 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






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






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






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






22. Frictional + structural unemployment






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






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






25. Cost of living allowance






26. Monetary






27. The average of all prices is falling






28. 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.






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






30. 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






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






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






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






34. Personal income less income taxes






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






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






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






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






39. 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)






40. Output sacrificed due to unemployment






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






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






43. Consumption - investment - government - and net exports






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






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






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






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






48. The sale of goods and services to households






49. Inflation caused by excess demand in the economy






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