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






2. Monetary






3. Personal income less income taxes






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






5. The average of all prices is falling






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






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






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






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






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


11. Inflation caused by excess demand in the economy






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






13. Recurrent ups and downs of economic activity






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






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






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






17. Consumption - investment - government - and net exports






18. All investment spending by government and business firms






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






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






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






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






23. 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






24. 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.






25. The sale of goods and services to households






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






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






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






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






30. 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






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






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






33. Frictional + structural unemployment






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






35. Periodic and predictable economic changes






36. Temporary and associated with turnover in the labor market






37. Cost of living allowance






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






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






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






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






42. Maximum output of business cycle






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






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






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






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. Output sacrificed due to unemployment






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






50. 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