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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. The sale of goods and services to households






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






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






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






6. Periodic and predictable economic changes






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


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






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






10. Cost of living allowance






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






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






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






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






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






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






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






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






19. Cyclical unemployment is at 0






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






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






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






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






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






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






26. Inflation caused by excess demand in the economy






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






28. Temporary and associated with turnover in the labor market






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






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






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






32. 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






33. Output sacrificed due to unemployment






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






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






36. Recurrent ups and downs of economic activity






37. GDP = C + Ig + G + Xn






38. The average of all prices is falling






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






40. All investment spending by government and business firms






41. 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.






42. 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)






43. Maximum output of business cycle






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






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






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






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






48. 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






49. 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






50. Consumption - investment - government - and net exports