Test your basic knowledge |

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. 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






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






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






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






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






6. All investment spending by government and business firms






7. Periodic and predictable economic changes






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






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






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






11. 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)






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






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






14. Recurrent ups and downs of economic activity






15. 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






16. Inflation caused by excess demand in the economy






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






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






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






20. Monetary






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






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






23. 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






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






25. Temporary and associated with turnover in the labor market






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






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






28. Personal income less income taxes






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






30. The average of all prices is falling






31. Frictional + structural unemployment






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


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






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






35. Cost of living allowance






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






37. Output sacrificed due to unemployment






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






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






40. Consumption - investment - government - and net exports






41. 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






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






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






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






45. GDP = C + Ig + G + Xn






46. 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.






47. Cyclical unemployment is at 0






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






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






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