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






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






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






4. 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






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






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






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






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






9. All investment spending by government and business firms






10. The sale of goods and services to households






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






12. The average of all prices is falling






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






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






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


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






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






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






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






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






21. Personal income less income taxes






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






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






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






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






26. 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






27. 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






28. 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.






29. Consumption - investment - government - and net exports






30. GDP = C + Ig + G + Xn






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






32. Maximum output of business cycle






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






34. Temporary and associated with turnover in the labor market






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






36. Recurrent ups and downs of economic activity






37. Frictional + structural unemployment






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






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






40. Output sacrificed due to unemployment






41. Periodic and predictable economic changes






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






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






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






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






46. 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)






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






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






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






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