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






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






3. 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.






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






5. Frictional + structural unemployment






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






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






8. Periodic and predictable economic changes






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






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






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






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






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






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






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






16. Output sacrificed due to unemployment






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






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






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






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


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






22. 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






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. Cost of living allowance






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






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






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






28. 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






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






30. Monetary






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






32. GDP = C + Ig + G + Xn






33. Consumption - investment - government - and net exports






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






35. 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






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






37. Cyclical unemployment is at 0






38. Personal income less income taxes






39. 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)






40. All investment spending by government and business firms






41. Temporary and associated with turnover in the labor market






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






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






44. The average of all prices is falling






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






46. Recurrent ups and downs of economic activity






47. 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






48. Inflation caused by excess demand in the economy






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






50. The sale of goods and services to households