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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. 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






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






3. 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)






4. GDP = C + Ig + G + Xn






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






6. 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






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






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






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






10. Recurrent ups and downs of economic activity






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






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






13. Cost of living allowance






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






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






16. Frictional + structural unemployment






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






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






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






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






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






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


23. Personal income less income taxes






24. 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






25. Output sacrificed due to unemployment






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






27. 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






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






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






30. The average of all prices is falling






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






32. Periodic and predictable economic changes






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






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






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






36. Maximum output of business cycle






37. The sale of goods and services to households






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






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






40. 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.






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






42. Monetary






43. Temporary and associated with turnover in the labor market






44. Consumption - investment - government - and net exports






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






46. 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






47. Inflation caused by excess demand in the economy






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






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






50. All investment spending by government and business firms