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






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






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






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






6. Temporary and associated with turnover in the labor market






7. Periodic and predictable economic changes






8. 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






9. GDP = C + Ig + G + Xn






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






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






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






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






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






15. 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






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






17. Consumption - investment - government - and net exports






18. Maximum output of business cycle






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






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. 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






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






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


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






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






26. Cyclical unemployment is at 0






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






28. 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)






29. Cost of living allowance






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






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






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






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






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






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






36. Output sacrificed due to unemployment






37. 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.






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






39. Frictional + structural unemployment






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






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






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






43. Monetary






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






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






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






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






48. Recurrent ups and downs of economic activity






49. All investment spending by government and business firms






50. Inflation caused by excess demand in the economy