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






2. Cyclical unemployment is at 0






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






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






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






6. The average of all prices is falling






7. 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)






8. 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






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






10. Output sacrificed due to unemployment






11. 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.






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






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






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






15. Maximum output of business cycle






16. The sale of goods and services to households






17. 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






18. Periodic and predictable economic changes






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






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






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






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






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






24. Monetary






25. GDP = C + Ig + G + Xn






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






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






28. 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






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






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






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






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






33. Temporary and associated with turnover in the labor market






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






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






36. Consumption - investment - government - and net exports






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






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






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






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






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






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


43. Frictional + structural unemployment






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






45. Recurrent ups and downs of economic activity






46. All investment spending by government and business firms






47. 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






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






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






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