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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. Maximum output of business cycle






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






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






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






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






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






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






8. Periodic and predictable economic changes






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






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






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






12. 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






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






14. All investment spending by government and business firms






15. Monetary






16. Recurrent ups and downs of economic activity






17. Temporary and associated with turnover in the labor market






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






19. 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






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


21. Frictional + structural unemployment






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






23. Personal income less income taxes






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






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






26. 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)






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






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






29. GDP = C + Ig + G + Xn






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






31. Inflation caused by excess demand in the economy






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






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






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






36. 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






37. Cyclical unemployment is at 0






38. Consumption - investment - government - and net exports






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






40. The sale of goods and services to households






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






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






43. Cost of living allowance






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






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






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






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






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






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






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