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






3. Monetary






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






5. The sale of goods and services to households






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






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






8. Personal income less income taxes






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






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






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






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






13. Frictional + structural unemployment






14. The average of all prices is falling






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






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






17. 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






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






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






20. All investment spending by government and business firms






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






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






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






24. 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.






25. Maximum output of business cycle






26. Cyclical unemployment is at 0






27. Cost of living allowance






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






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






30. Recurrent ups and downs of economic activity






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






32. Consumption - investment - government - and net exports






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






34. GDP = C + Ig + G + Xn






35. 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)






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






37. 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






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






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






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






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






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






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






44. Temporary and associated with turnover in the labor market






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






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






47. Inflation caused by excess demand in the economy






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






49. 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






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