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






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






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






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






5. Cyclical unemployment is at 0






6. Output sacrificed due to unemployment






7. Consumption - investment - government - and net exports






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






9. 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






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






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






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






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






14. Monetary






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






16. All investment spending by government and business firms






17. 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






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






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






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






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






22. The sale of goods and services to households






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






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






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






26. 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.






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






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






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






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






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






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






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






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






35. The average of all prices is falling






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






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


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






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. GDP = C + Ig + G + Xn






41. Maximum output of business cycle






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






43. 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)






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






45. Periodic and predictable economic changes






46. Temporary and associated with turnover in the labor market






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






48. Personal income less income taxes






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