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Test your basic knowledge |
CLEP Macroeconomics: Measurement Of Economic Performance
Start Test
Study First
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
structural unemployment
price index
seasonal changes
income approach
2. All people who are either employed or unemployed - but excludes people who are institutionalized or in the military
civilian labor force
GDP Price Index
intermediate goods
government expenditures
3. Second-hand sales (goods not produced that year) and financial transactions (moving money from x to y); not counted in GDP
how to determine GDP
cyclical / deficit demand unemployment
non-production transactions
full employment
4. A sustained rise in the general price level of an economy
inflation
rule of 70
seasonal changes
nominal income
5. A person who is available for and looking for work - but has none
Consumer Price Index (CPI)
nominal income
final goods
unemployed
6. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions
national income
intermediate goods
three kinds of Ig expenditures
seasonal unemployment
7. Those who are on ______ incomes are hurt most by inflation
national income accounting
circular flow diagram
government expenditures
fixed income
8. 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.
personal income
unemployment rate
expansion / recovery
how to determine GDP
9. Caused by the actions of people who have come to expect a certain amount of inflation in the economy
labor force
largest category of GDI
CPI equation
structural / expectational inflation
10. Maximum output of business cycle
national income
peak
three kinds of Ig expenditures
rule of 70
11. Phase of the business cycle where output and employment are at their lowest levels
demand pull
CPI equation
non-production transactions
trough
12. A basic accounting measure of total production of goods and services of the national economy in one year
participation rate
GDP (Gross Domestic Product)
demand pull
COLA
13. GDI = w + i + r + pi + misc
largest category of GDI
gross investment expenditures
GDI equation
frictional unemployment
14. Measures the amount of goods and services one's money can buy; measures purchasing power
COLA
fixed income
real income
natural employment
15. The sale of goods and services to households
consumption expenditures
income approach
GDP (Gross Domestic Product)
price index
16. All people living in a society who are of legal age to work
unemployment rate
GDP (Gross Domestic Product)
labor force
COLA
17. All investment spending by government and business firms
unemployment rate
expansion / recovery
gross investment expenditures
business cycle
18. Inflation arising from the supply or cost side of the economy
price index
civilian labor force
cost push
Okun's Law
19. Results from laborers having a mismatched skill set with what is demanded by the current labor market
frictional unemployment
structural unemployment
Okun's Law
inflation
20. 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
circular flow diagram
GDP Price Index
COLA
rule of 70
21. Shows how money and goods and services flow between the various markets and players in the economy
circular flow diagram
structural unemployment
seasonal changes
national income
22. 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
price index
nominal income
civilian labor force
recession
23. Monetary
inflation
fixed income
intermediate goods
GDP measures the market value of annual output and it is a __________ measure.
24. Cyclical unemployment is at 0
business cycle
full employment
peak
four kinds of spending
25. The number of dollars one receives as wages - rent - interest or profit
structural unemployment
nominal income
real income
largest category of GDI
26. Output measured at base year prices - and thus adjusted
labor force
natural employment
nominal GDP
real GDP
27. Total income earned by resource suppliers for their contributions to the production of the GNP
national income
participation rate
four kinds of spending
structural / expectational inflation
28. Temporary and associated with turnover in the labor market
largest category of GDI
unemployment rate
frictional unemployment
net export expenditures
29. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP
consumption expenditures
cost push
Okun's Law
final goods
30. Recurrent ups and downs of economic activity
expenditure approach
cyclical / deficit demand unemployment
business cycle
how to determine GDP
31. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories
participation rate
rule of 70
three kinds of Ig expenditures
structural unemployment
32. Output sacrificed due to unemployment
disposable income
peak
deflation
GDP gap
33. Allows us to keep tabs on the economic health of society and to develop policies that will improve that health
deflation
national income accounting
GDP Price Index
final goods
34. The percentage of unemployed workers in the civilian labor force
participation rate
unemployment rate
expenditure approach
demand pull
35. Measures national income as the sum of the incomes received by productive resources in the economy; also called Gross Domestic Income (GDI)
expansion / recovery
price index
income approach
disposable income
36. Output measured at current prices - and thus unadjusted figure for GDP
three kinds of Ig expenditures
national income accounting
nominal GDP
national income
37. Income earned that is available to resource suppliers and others before payment of personal taxes
real income
real GDP
personal income
GDP (Gross Domestic Product)
38. Personal income less income taxes
disposable income
national income
gross investment expenditures
rule of 70
39. Consumption - investment - government - and net exports
nominal GDP
five sources of income
national income
four kinds of spending
40. The total net sales of goods sold abroad minus the total net spent on purchases from other countries
net export expenditures
largest category of GDI
labor force
Consumer Price Index (CPI)
41. Excess unemployment caused because the economy deviates from the long run output potential of the economy
cyclical / deficit demand unemployment
fixed income
income approach
personal income
42. The civilian labor force expressed as a percentage of the labor force population
participation rate
GDP (Gross Domestic Product)
government expenditures
fixed income
43. GDP = C + Ig + G + Xn
GDP equation (expenditure approach)
civilian labor force
Okun's Law
inflation
44. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance
civilian labor force
final goods
largest category of GDI
price index
45. The average of all prices is falling
seasonal changes
demand pull
deflation
Okun's Law
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
disposable income
price index
GDP equation (expenditure approach)
seasonal unemployment
47. (1) wages - (2) rents - (3) profits - (4) interest - (5) misc
how to determine GDP
expenditure approach
five sources of income
national income
48. Inflation caused by excess demand in the economy
disposable income
national income
deflation
demand pull
49. Those that are used to produce other goods that will eventually be sold (miller sells flour to a baker); not counted in GDP
real GDP
frictional unemployment
intermediate goods
cyclical / deficit demand unemployment
50. Measures the prices of a fixed market basket of over 300 consumer goods and services purchased by the typical urban consumer
Consumer Price Index (CPI)
trough
fixed income
cyclical / deficit demand unemployment