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Test your basic knowledge |
CLEP Macroeconomics: Measurement Of Economic Performance
Start Test
Study First
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. Phase of the business cycle where output and employment begin to move toward full employment
GDP gap
expansion / recovery
real income
full employment
2. Allows us to keep tabs on the economic health of society and to develop policies that will improve that health
national income accounting
participation rate
fixed income
largest category of GDI
3. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP
final goods
GDP Price Index
non-production transactions
expenditure approach
4. 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
Okun's Law
Gross National Product (GNP)
how to determine GDP
rule of 70
5. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance
three kinds of Ig expenditures
largest category of GDI
structural / expectational inflation
unemployment rate
6. Inflation caused by excess demand in the economy
cost push
demand pull
natural employment
non-production transactions
7. Total income earned by resource suppliers for their contributions to the production of the GNP
non-production transactions
structural / expectational inflation
national income
structural unemployment
8. Cyclical unemployment is at 0
CPI equation
nominal GDP
inflation
full employment
9. Those that are used to produce other goods that will eventually be sold (miller sells flour to a baker); not counted in GDP
Gross National Product (GNP)
intermediate goods
rule of 70
consumption expenditures
10. The total net sales of goods sold abroad minus the total net spent on purchases from other countries
GDI equation
fixed income
frictional unemployment
net export expenditures
11. 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
real GDP
rule of 70
circular flow diagram
government expenditures
12. Those who are on ______ incomes are hurt most by inflation
deflation
real GDP
fixed income
participation rate
13. Periodic and predictable economic changes
real income
demand pull
inflation
seasonal changes
14. 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
income approach
price index
expenditure approach
natural employment
15. 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
demand pull
non-production transactions
consumption expenditures
GDP Price Index
16. Personal income less income taxes
Okun's Law
national income
disposable income
CPI equation
17. Consumption - investment - government - and net exports
national income
natural employment
four kinds of spending
GDI equation
18. Output sacrificed due to unemployment
GDP measures the market value of annual output and it is a __________ measure.
national income
GDP gap
nominal GDP
19. Income earned that is available to resource suppliers and others before payment of personal taxes
how to determine GDP
trough
business cycle
personal income
20. Excess unemployment caused because the economy deviates from the long run output potential of the economy
natural employment
price index
cyclical / deficit demand unemployment
rule of 70
21. Results from laborers having a mismatched skill set with what is demanded by the current labor market
national income
structural unemployment
gross investment expenditures
business cycle
22. Government purchase of goods and services; does not include transfer payments and expenditures for servicing the national debt or investment goods
government expenditures
price index
unemployed
unemployment rate
23. The average of all prices is falling
real income
GDI equation
deflation
COLA
24. Recurrent ups and downs of economic activity
GDP Price Index
business cycle
non-production transactions
full employment
25. Measures national income as the sum of the incomes received by productive resources in the economy; also called Gross Domestic Income (GDI)
income approach
Okun's Law
national income accounting
non-production transactions
26. Shows how money and goods and services flow between the various markets and players in the economy
circular flow diagram
cost push
COLA
rule of 70
27. 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)
structural / expectational inflation
GDP Price Index
net export expenditures
expenditure approach
28. The percentage of unemployed workers in the civilian labor force
cost push
largest category of GDI
unemployment rate
national income accounting
29. Monetary
intermediate goods
recession
GDP measures the market value of annual output and it is a __________ measure.
seasonal changes
30. 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.
real income
how to determine GDP
four kinds of spending
seasonal changes
31. (1) wages - (2) rents - (3) profits - (4) interest - (5) misc
how to determine GDP
structural / expectational inflation
GDP Price Index
five sources of income
32. Output measured at base year prices - and thus adjusted
CPI equation
cyclical / deficit demand unemployment
full employment
real GDP
33. Inflation arising from the supply or cost side of the economy
national income accounting
frictional unemployment
expenditure approach
cost push
34. Phase of the business cycle where output and employment are at their lowest levels
seasonal changes
structural unemployment
trough
cyclical / deficit demand unemployment
35. Frictional + structural unemployment
labor force
natural employment
income approach
seasonal changes
36. All people who are either employed or unemployed - but excludes people who are institutionalized or in the military
civilian labor force
GDP equation (expenditure approach)
net export expenditures
rule of 70
37. Cost of living allowance
intermediate goods
COLA
income approach
consumption expenditures
38. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions
largest category of GDI
seasonal unemployment
GDP gap
seasonal changes
39. Caused by the actions of people who have come to expect a certain amount of inflation in the economy
Gross National Product (GNP)
GDP gap
five sources of income
structural / expectational inflation
40. 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
demand pull
GDP (Gross Domestic Product)
GDP Price Index
recession
41. Second-hand sales (goods not produced that year) and financial transactions (moving money from x to y); not counted in GDP
recession
unemployment rate
disposable income
non-production transactions
42. A basic accounting measure of total production of goods and services of the national economy in one year
structural / expectational inflation
GDP (Gross Domestic Product)
how to determine GDP
natural employment
43. The civilian labor force expressed as a percentage of the labor force population
participation rate
three kinds of Ig expenditures
seasonal changes
net export expenditures
44. A person who is available for and looking for work - but has none
structural / expectational inflation
unemployed
Okun's Law
real GDP
45. GDI = w + i + r + pi + misc
GDP equation (expenditure approach)
GDI equation
government expenditures
Consumer Price Index (CPI)
46. GDP = C + Ig + G + Xn
final goods
Consumer Price Index (CPI)
GDP equation (expenditure approach)
consumption expenditures
47. (base year basket valued at current year prices/base year basket valued at base year prices) x 100
five sources of income
CPI equation
labor force
GDP (Gross Domestic Product)
48. All people living in a society who are of legal age to work
recession
labor force
demand pull
GDP equation (expenditure approach)
49. A sustained rise in the general price level of an economy
GDP measures the market value of annual output and it is a __________ measure.
inflation
frictional unemployment
rule of 70
50. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories
national income
inflation
GDP equation (expenditure approach)
three kinds of Ig expenditures