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






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






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






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






5. The average of all prices is falling






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






7. 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






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






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






10. Consumption - investment - government - and net exports






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






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






13. Cost of living allowance






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






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






16. The sale of goods and services to households






17. Inflation caused by excess demand in the economy






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


19. Personal income less income taxes






20. 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






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






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






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






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






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






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






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






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






29. Recurrent ups and downs of economic activity






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






31. 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.






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






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






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






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






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






37. 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)






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






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. All investment spending by government and business firms






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






42. Monetary






43. Periodic and predictable economic changes






44. Cyclical unemployment is at 0






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






46. Maximum output of business cycle






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






48. Temporary and associated with turnover in the labor market






49. Output sacrificed due to unemployment






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