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CLEP Macroeconomics: Measurement Of Economic Performance

Subjects : clep, economics
  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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. Measures national income as the sum of the incomes received by productive resources in the economy; also called Gross Domestic Income (GDI)

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

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

4. 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

5. Maximum output of business cycle

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

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

8. 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)

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

10. Recurrent ups and downs of economic activity

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

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

13. Inflation caused by excess demand in the economy

14. GDP = C + Ig + G + Xn

15. Frictional + structural unemployment

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

17. Cost of living allowance

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

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

20. Monetary

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

22. 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

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

24. Cyclical unemployment is at 0

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

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

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

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

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

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

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

32. Output sacrificed due to unemployment

33. Consumption - investment - government - and net exports

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

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

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

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

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

40. All investment spending by government and business firms

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

43. The average of all prices is falling

44. Periodic and predictable economic changes

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

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

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. Personal income less income taxes

49. Temporary and associated with turnover in the labor market

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