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






2. All investment spending by government and business firms






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






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






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






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






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






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






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






10. 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






11. 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)






12. Recurrent ups and downs of economic activity






13. Consumption - investment - government - and net exports






14. Inflation caused by excess demand in the economy






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






16. Frictional + structural unemployment






17. Cost of living allowance






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






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






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


21. 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






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






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






24. Output sacrificed due to unemployment






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






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






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






28. Cyclical unemployment is at 0






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






30. Monetary






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






32. 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






33. 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






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






35. The sale of goods and services to households






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






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






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






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






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






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






42. Personal income less income taxes






43. Periodic and predictable economic changes






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






45. Maximum output of business cycle






46. 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






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






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






49. Temporary and associated with turnover in the labor market






50. GDP = C + Ig + G + Xn