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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. Cost of living allowance






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






3. Temporary and associated with turnover in the labor market






4. 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






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






6. 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.






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






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






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






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






11. 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)






12. Cyclical unemployment is at 0






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






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






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






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






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






18. GDP = C + Ig + G + Xn






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






20. Maximum output of business cycle






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






22. Personal income less income taxes






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






24. Monetary






25. Recurrent ups and downs of economic activity






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






27. Consumption - investment - government - and net exports






28. 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






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






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






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






32. 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






33. All investment spending by government and business firms






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






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






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


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






38. 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






39. 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






40. Output sacrificed due to unemployment






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






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






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






44. The average of all prices is falling






45. Periodic and predictable economic changes






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






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






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






49. The sale of goods and services to households






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