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






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






3. 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.






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






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






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






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






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






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






10. Recurrent ups and downs of economic activity






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






12. Maximum output of business cycle






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






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






15. 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






16. Output sacrificed due to unemployment






17. Personal income less income taxes






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






19. 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






20. Cost of living allowance






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






22. 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






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






24. Inflation caused by excess demand in the economy






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






26. All investment spending by government and business firms






27. The average of all prices is falling






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






29. 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






30. GDP = C + Ig + G + Xn






31. Cyclical unemployment is at 0






32. Periodic and predictable economic changes






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






34. The sale of goods and services to households






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






36. 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)






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






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






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






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






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






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






43. Monetary






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






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


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






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






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






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






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