Test your basic knowledge |

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






2. Cost of living allowance






3. Maximum output of business cycle






4. 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






5. Cyclical unemployment is at 0






6. Personal income less income taxes






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






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






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






10. Recurrent ups and downs of economic activity






11. Monetary






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






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






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






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






16. Temporary and associated with turnover in the labor market






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






18. 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






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






20. GDP = C + Ig + G + Xn






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






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






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






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






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






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






27. The sale of goods and services to households






28. 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






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






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






31. Periodic and predictable economic changes






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






33. Consumption - investment - government - and net exports






34. 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.






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






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






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






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






39. Output sacrificed due to unemployment






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






41. 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)






42. Inflation caused by excess demand in the economy






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


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






45. Frictional + structural unemployment






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






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






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






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






50. All investment spending by government and business firms