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






2. Personal income less income taxes






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






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






5. 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






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






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






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






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






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






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






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






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






14. The average of all prices is falling






15. Output sacrificed due to unemployment






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






17. The sale of goods and services to households






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






19. GDP = C + Ig + G + Xn






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






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






22. Monetary






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






24. Recurrent ups and downs of economic activity






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






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






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






28. 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






29. Periodic and predictable economic changes






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






31. Frictional + structural unemployment






32. 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.






33. Cost of living allowance






34. 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)






35. Consumption - investment - government - and net exports






36. 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






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






38. 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






39. Inflation caused by excess demand in the economy






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






41. Cyclical unemployment is at 0






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






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






44. Maximum output of business cycle






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






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






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






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

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






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