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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 percentage of unemployed workers in the civilian labor force






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






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






4. Consumption - investment - government - and net exports






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






6. Cyclical unemployment is at 0






7. Monetary






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






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






10. Maximum output of business cycle






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






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






13. 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






14. Temporary and associated with turnover in the labor market






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






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






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






18. 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)






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






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






21. Inflation caused by excess demand in the economy






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






23. 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






24. The sale of goods and services to households






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






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






27. 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.






28. Frictional + structural unemployment






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






30. Cost of living allowance






31. 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






32. Personal income less income taxes






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






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






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






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






37. The average of all prices is falling






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






39. 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






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






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






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






43. GDP = C + Ig + G + Xn






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






45. Output sacrificed due to unemployment






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






47. Recurrent ups and downs of economic activity






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


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






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