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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. 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

2. Cost of living allowance

3. Recurrent ups and downs of economic activity

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

5. Cyclical unemployment is at 0

6. GDP = C + Ig + G + Xn

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

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

9. The sale of goods and services to households

10. Inflation caused by excess demand in the economy

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

12. Monetary

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

14. 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)

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

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

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

18. Periodic and predictable economic changes

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

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

21. Frictional + structural unemployment

22. Temporary and associated with turnover in the labor market

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

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

25. Maximum output of business cycle

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

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

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

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

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

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

32. Output sacrificed due to unemployment

33. 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.

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

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

36. 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

37. The average of all prices is falling

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

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

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

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

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

43. 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

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

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

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

47. All investment spending by government and business firms

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

49. 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

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