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






2. The sale of goods and services to households






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






4. GDP = C + Ig + G + Xn






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






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






7. Consumption - investment - government - and net exports






8. 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






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






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






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






12. Maximum output of business cycle






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






14. 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.






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






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






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






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






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






20. 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






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






22. Periodic and predictable economic changes






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






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






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






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






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






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






29. The average of all prices is falling






30. 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)






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






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






33. Inflation caused by excess demand in the economy






34. Output sacrificed due to unemployment






35. Temporary and associated with turnover in the labor market






36. Recurrent ups and downs of economic activity






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






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






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






40. Frictional + structural unemployment






41. Monetary






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






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






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






45. Cost of living allowance






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






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






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






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






50. 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