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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. Periodic and predictable economic changes






2. Frictional + structural unemployment






3. Inflation caused by excess demand in the economy






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






5. 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






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






7. Output sacrificed due to unemployment






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






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






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






11. The average of all prices is falling






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






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






14. 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






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






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






17. Temporary and associated with turnover in the labor market






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






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






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






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






22. Cost of living allowance






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






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






25. Consumption - investment - government - and net exports






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






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






28. 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






29. All investment spending by government and business firms






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






31. Cyclical unemployment is at 0






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






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






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






35. The sale of goods and services to households






36. Personal income less income taxes






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






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






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






40. GDP = C + Ig + G + Xn






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






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






43. 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.






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


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






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






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






48. 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






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






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