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






2. 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






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






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






5. 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)






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


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






8. 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






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






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






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






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






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






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






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






16. Cyclical unemployment is at 0






17. Cost of living allowance






18. Inflation caused by excess demand in the economy






19. 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.






20. Temporary and associated with turnover in the labor market






21. Personal income less income taxes






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






23. The average of all prices is falling






24. Consumption - investment - government - and net exports






25. 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






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






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






28. GDP = C + Ig + G + Xn






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






30. Output sacrificed due to unemployment






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






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






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






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






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






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






37. Monetary






38. The sale of goods and services to households






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






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






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






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






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






44. Frictional + structural unemployment






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






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






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






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






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






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