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






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






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






4. GDP = C + Ig + G + Xn






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






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






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






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


9. The average of all prices is falling






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






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






12. 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






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






14. Monetary






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






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






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






18. Temporary and associated with turnover in the labor market






19. 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






20. Cost of living allowance






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






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






23. Periodic and predictable economic changes






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






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






26. The sale of goods and services to households






27. Frictional + structural unemployment






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






29. Recurrent ups and downs of economic activity






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






31. Output sacrificed due to unemployment






32. Maximum output of business cycle






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






34. Personal income less income taxes






35. 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






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






37. Cyclical unemployment is at 0






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






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






40. 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.






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






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






43. All investment spending by government and business firms






44. Inflation caused by excess demand in the economy






45. 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






46. Consumption - investment - government - and net exports






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






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






49. 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)






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