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






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






3. Output sacrificed due to unemployment






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






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






7. 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






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






10. 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)






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






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






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






14. 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






15. The sale of goods and services to households






16. Cyclical unemployment is at 0






17. Inflation caused by excess demand in the economy






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






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






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






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


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






23. GDP = C + Ig + G + Xn






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






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






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






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






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






29. Periodic and predictable economic changes






30. 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






31. Maximum output of business cycle






32. The average of all prices is falling






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






34. 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.






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






36. Temporary and associated with turnover in the labor market






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






38. Frictional + structural unemployment






39. Consumption - investment - government - and net exports






40. Cost of living allowance






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






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






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






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






45. Recurrent ups and downs of economic activity






46. Personal income less income taxes






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






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






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






50. All investment spending by government and business firms