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CLEP Macroeconomics: Measurement Of Economic Performance

Subjects : clep, economics
  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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 that is available to resource suppliers and others before payment of personal taxes

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

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

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

5. Temporary and associated with turnover in the labor market

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

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

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

9. All investment spending by government and business firms

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

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

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. Personal income less income taxes

15. Recurrent ups and downs of economic activity

16. The average of all prices is falling

17. Consumption - investment - government - and net exports

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

19. 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

20. Output sacrificed due to unemployment

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

22. Inflation caused by excess demand in the economy

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

24. The sale of goods and services to households

25. 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

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

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

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

29. Maximum output of business cycle

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

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

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

33. Periodic and predictable economic changes

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

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

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

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

38. 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

39. Monetary

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

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

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

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

44. 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

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

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

47. GDP = C + Ig + G + Xn

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

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

50. 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