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






2. 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






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






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






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






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






7. Cost of living allowance






8. Personal income less income taxes






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






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






11. Monetary






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






13. Periodic and predictable economic changes






14. Results from laborers having a mismatched skill set with what is demanded by the current labor market






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






16. Consumption - investment - government - and net exports






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






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






19. Cyclical unemployment is at 0






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






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






22. 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






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






24. Frictional + structural unemployment






25. Output sacrificed due to unemployment






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






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)






28. 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.






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


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






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






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






33. 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






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






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






36. Temporary and associated with turnover in the labor market






37. 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






38. Recurrent ups and downs of economic activity






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






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






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






42. The average of all prices is falling






43. GDP = C + Ig + G + Xn






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






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






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






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






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






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






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