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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. 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






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






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






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






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






6. Periodic and predictable economic changes






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






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






9. 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






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






11. Consumption - investment - government - and net exports






12. Personal income less income taxes






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


14. Output sacrificed due to unemployment






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






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






17. Recurrent ups and downs of economic activity






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






19. 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






20. 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






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






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






23. The sale of goods and services to households






24. All investment spending by government and business firms






25. 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






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






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






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






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






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






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






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






33. Temporary and associated with turnover in the labor market






34. 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.






35. Cost of living allowance






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






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






39. Cyclical unemployment is at 0






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






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






42. Frictional + structural unemployment






43. Maximum output of business cycle






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






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






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






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






48. The average of all prices is falling






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






50. Monetary