Test your basic knowledge |

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. 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






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






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






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






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






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






7. Cost of living allowance






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






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






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






11. Inflation caused by excess demand in the economy






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






13. Consumption - investment - government - and net exports






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






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






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






17. Recurrent ups and downs of economic activity






18. The average of all prices is falling






19. Maximum output of business cycle






20. The sale of goods and services to households






21. Frictional + structural unemployment






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


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






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






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






26. 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






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






28. GDP = C + Ig + G + Xn






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






30. 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






31. 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






32. Temporary and associated with turnover in the labor market






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






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






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






36. 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)






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






38. 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






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






40. Output sacrificed due to unemployment






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






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






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






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






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






46. Personal income less income taxes






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






48. All investment spending by government and business firms






49. Monetary






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