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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. The percentage of unemployed workers in the civilian labor force






2. The sale of goods and services to households






3. Frictional + structural unemployment






4. Maximum output of business cycle






5. Consumption - investment - government - and net exports






6. Output sacrificed due to unemployment






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






8. 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)






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






10. 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.






11. 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






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






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






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






15. 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






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






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






18. Temporary and associated with turnover in the labor market






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






20. Personal income less income taxes






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






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


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






24. 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






25. Inflation caused by excess demand in the economy






26. Cost of living allowance






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






28. Cyclical unemployment is at 0






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






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






31. The average of all prices is falling






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






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






34. Periodic and predictable economic changes






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






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






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






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






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






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






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






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






43. Recurrent ups and downs of economic activity






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






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






46. 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






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






48. All investment spending by government and business firms






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






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