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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. Frictional + structural unemployment






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






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






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






5. Output sacrificed due to unemployment






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






7. 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






8. Consumption - investment - government - and net exports






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






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






11. 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.






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






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






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






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






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






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






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






19. All investment spending by government and business firms






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






21. The average of all prices is falling






22. GDP = C + Ig + G + Xn






23. Cyclical unemployment is at 0






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






25. Monetary






26. Maximum output of business cycle






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






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






29. The sale of goods and services to households






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






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






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






33. Cost of living allowance






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






35. Periodic and predictable economic changes






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






37. 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






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






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






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






41. 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






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






43. 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)






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


45. Recurrent ups and downs of economic activity






46. Temporary and associated with turnover in the labor market






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






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






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






50. Personal income less income taxes