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CLEP Macroeconomics: Measurement Of Economic Performance

Subjects : clep, economics
  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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. Shows how money and goods and services flow between the various markets and players in the economy

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

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

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

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

6. 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

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

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

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

10. The average of all prices is falling

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

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

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

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

15. Frictional + structural unemployment

16. The sale of goods and services to households

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

18. 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.

19. Maximum output of business cycle

20. Temporary and associated with turnover in the labor market

21. Monetary

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

23. Periodic and predictable economic changes

24. Inflation caused by excess demand in the economy

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

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

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

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

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

30. Recurrent ups and downs of economic activity

31. 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)

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

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

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

35. GDP = C + Ig + G + Xn

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

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

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

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

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

41. 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

42. Personal income less income taxes

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

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

45. Consumption - investment - government - and net exports

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

47. Cyclical unemployment is at 0

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

49. All investment spending by government and business firms

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