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






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






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






4. Temporary and associated with turnover in the labor market






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






6. The average of all prices is falling






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






8. Periodic and predictable economic changes






9. Cost of living allowance






10. The sale of goods and services to households






11. Output sacrificed due to unemployment






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






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






14. Maximum output of business cycle






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






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






18. Cyclical unemployment is at 0






19. Frictional + structural unemployment






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






21. 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






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






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






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






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






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






27. 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)






28. Recurrent ups and downs of economic activity






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






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






31. 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






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






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






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






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






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






37. 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.






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






39. Monetary






40. 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






41. Consumption - investment - government - and net exports






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






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






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






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






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






47. Inflation caused by excess demand in the economy






48. All investment spending by government and business firms






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






50. GDP = C + Ig + G + Xn