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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 investment spending by government and business firms






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






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






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. Consumption - investment - government - and net exports






8. Cyclical unemployment is at 0






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






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






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






12. Recurrent ups and downs of economic activity






13. 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






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






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






18. The sale of goods and services to households






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






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






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






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






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






24. Monetary






25. Temporary and associated with turnover in the labor market






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






27. 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.






28. Cost of living allowance






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






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






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






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






33. Periodic and predictable economic changes






34. The average of all prices is falling






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






36. Inflation caused by excess demand in the economy






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






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






39. 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






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


41. 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






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






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






44. GDP = C + Ig + G + Xn






45. Personal income less income taxes






46. 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






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






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






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






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