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






2. Personal income less income taxes






3. GDP = C + Ig + G + Xn






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






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






6. 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)






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






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






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






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






11. Periodic and predictable economic changes






12. 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






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






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






15. Consumption - investment - government - and net exports






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






17. Maximum output of business cycle






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






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






20. Inflation caused by excess demand in the economy






21. All investment spending by government and business firms






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






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






24. Recurrent ups and downs of economic activity






25. Monetary






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






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






28. 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






29. Frictional + structural unemployment






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


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






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






33. The average of all prices is falling






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






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






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






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






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






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






40. The sale of goods and services to households






41. Output sacrificed due to unemployment






42. 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.






43. 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






44. Cyclical unemployment is at 0






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






46. 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






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






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






49. Cost of living allowance






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