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


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






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






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






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






6. Output sacrificed due to unemployment






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






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






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






10. Cyclical unemployment is at 0






11. Frictional + structural unemployment






12. 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






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






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






15. Recurrent ups and downs of economic activity






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






17. GDP = C + Ig + G + Xn






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






19. Inflation caused by excess demand in the economy






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






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






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






23. Monetary






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






25. The sale of goods and services to households






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






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






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






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






30. Consumption - investment - government - and net exports






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






32. Temporary and associated with turnover in the labor market






33. Cost of living allowance






34. 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






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. Personal income less income taxes






38. 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






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






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






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






42. 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.






43. All investment spending by government and business firms






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






45. Periodic and predictable economic changes






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






47. The average of all prices is falling






48. 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






49. 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






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