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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. Cost of living allowance






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






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






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






5. Cyclical unemployment is at 0






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






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






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


9. 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






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






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






12. 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






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






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






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






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






17. 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






18. All investment spending by government and business firms






19. Output sacrificed due to unemployment






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






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






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






23. The sale of goods and services to households






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






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






26. GDP = C + Ig + G + Xn






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






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






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






30. Frictional + structural unemployment






31. Maximum output of business cycle






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






33. Consumption - investment - government - and net exports






34. Personal income less income taxes






35. The average of all prices is falling






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






37. 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






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






39. Temporary and associated with turnover in the labor market






40. Inflation caused by excess demand in the economy






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






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






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






44. Recurrent ups and downs of economic activity






45. 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)






46. 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






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






48. 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.






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






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