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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. 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






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






3. Recurrent ups and downs of economic activity






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






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






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






7. Inflation caused by excess demand in the economy






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






9. 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.






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






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






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






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






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






16. Output sacrificed due to unemployment






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






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






19. Consumption - investment - government - and net exports






20. 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)






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






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






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






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






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


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






27. Frictional + structural unemployment






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






29. Cyclical unemployment is at 0






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






31. Personal income less income taxes






32. The sale of goods and services to households






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






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






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






36. Temporary and associated with turnover in the labor market






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






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






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






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






41. Cost of living allowance






42. All investment spending by government and business firms






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






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






45. 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






46. Maximum output of business cycle






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






48. 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






49. GDP = C + Ig + G + Xn






50. Periodic and predictable economic changes