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






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






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






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






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






7. Personal income less income taxes






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


9. 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






10. Consumption - investment - government - and net exports






11. All investment spending by government and business firms






12. Temporary and associated with turnover in the labor market






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






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






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






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






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






18. Cyclical unemployment is at 0






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






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






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






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






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






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






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






26. 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.






27. GDP = C + Ig + G + Xn






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






29. 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)






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






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






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






33. Recurrent ups and downs of economic activity






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






35. The sale of goods and services to households






36. 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






37. 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






38. Monetary






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






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






41. Periodic and predictable economic changes






42. Cost of living allowance






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






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






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






46. Maximum output of business cycle






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






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






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






50. Frictional + structural unemployment