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






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






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






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






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






6. 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)






7. Output sacrificed due to unemployment






8. Inflation caused by excess demand in the economy






9. Frictional + structural unemployment






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






11. Periodic and predictable economic changes






12. Recurrent ups and downs of economic activity






13. Personal income less income taxes






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






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






16. Consumption - investment - government - and net exports






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






18. All investment spending by government and business firms






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






20. 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.






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






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






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






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






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






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






27. GDP = C + Ig + G + Xn






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






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






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






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






32. 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






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






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






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






36. Monetary






37. The average of all prices is falling






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






39. 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






40. Temporary and associated with turnover in the labor market






41. 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






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


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






44. Cyclical unemployment is at 0






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






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






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






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






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






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