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






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






3. Cyclical unemployment is at 0






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






5. Monetary






6. Periodic and predictable economic changes






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






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






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






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






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






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






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






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






15. Temporary and associated with turnover in the labor market






16. 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)






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






18. 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






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






20. All investment spending by government and business firms






21. Cost of living allowance






22. 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






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






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






25. The average of all prices is falling






26. The sale of goods and services to households






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






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






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






30. Output sacrificed due to unemployment






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






32. Recurrent ups and downs of economic activity






33. 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






34. 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.






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






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






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






38. Consumption - investment - government - and net exports






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






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






41. 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






42. Inflation caused by excess demand in the economy






43. Personal income less income taxes






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






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






46. Maximum output of business cycle






47. 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






48. GDP = C + Ig + G + Xn






49. Frictional + structural unemployment






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