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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. 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






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






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






4. Temporary and associated with turnover in the labor market






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






6. Monetary






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






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






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






10. Periodic and predictable economic changes






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


12. Maximum output of business cycle






13. 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.






14. Cyclical unemployment is at 0






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






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






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






18. 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






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






20. GDP = C + Ig + G + Xn






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






22. Cost of living allowance






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






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






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






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






27. 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






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






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






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






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






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






33. Consumption - investment - government - and net exports






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






35. Recurrent ups and downs of economic activity






36. Output sacrificed due to unemployment






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






38. Personal income less income taxes






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






40. 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






41. Frictional + structural unemployment






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






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






44. 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






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






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






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






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






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






50. The average of all prices is falling