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






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






3. 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






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






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






6. Monetary






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






8. Output sacrificed due to unemployment






9. Temporary and associated with turnover in the labor market






10. Consumption - investment - government - and net exports






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






12. 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.






13. 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)






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






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






16. GDP = C + Ig + G + Xn






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






18. Inflation caused by excess demand in the economy






19. All investment spending by government and business firms






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






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






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






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






24. Frictional + structural unemployment






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






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






27. 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






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






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


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






31. Recurrent ups and downs of economic activity






32. Cost of living allowance






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






34. 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






35. Periodic and predictable economic changes






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






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






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






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






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






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






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






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






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






45. Maximum output of business cycle






46. Personal income less income taxes






47. Cyclical unemployment is at 0






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






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






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