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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. Periodic and predictable economic changes






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






3. Frictional + structural unemployment






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






5. 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)






6. The average of all prices is falling






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






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






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






10. 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






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






12. Output sacrificed due to unemployment






13. Maximum output of business cycle






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






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






16. 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






17. Cyclical unemployment is at 0






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






19. 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.






20. The sale of goods and services to households






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






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






23. 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






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






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






26. Personal income less income taxes






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






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






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






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


31. All investment spending by government and business firms






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






33. GDP = C + Ig + G + Xn






34. Inflation caused by excess demand in the economy






35. 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






36. 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






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






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






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






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






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






42. Recurrent ups and downs of economic activity






43. Temporary and associated with turnover in the labor market






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






45. Consumption - investment - government - and net exports






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






47. Cost of living allowance






48. Monetary






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






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