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






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






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






4. Consumption - investment - government - and net exports






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






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






7. 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






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






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






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






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






12. Cost of living allowance






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


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






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






16. Inflation caused by excess demand in the economy






17. Personal income less income taxes






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






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






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






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






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






23. 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






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






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






26. All investment spending by government and business firms






27. Periodic and predictable economic changes






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






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






30. The average of all prices is falling






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






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






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






34. 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






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






36. 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






37. 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.






38. Recurrent ups and downs of economic activity






39. Output sacrificed due to unemployment






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






41. Maximum output of business cycle






42. The sale of goods and services to households






43. GDP = C + Ig + G + Xn






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






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






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






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






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






49. 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)






50. Frictional + structural unemployment