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






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






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






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






5. 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






6. 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






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






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






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






10. Consumption - investment - government - and net exports






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






12. Maximum output of business cycle






13. Periodic and predictable economic changes






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






15. GDP = C + Ig + G + Xn






16. Output sacrificed due to unemployment






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






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






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






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






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






22. 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)






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






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






25. Personal income less income taxes






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






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






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






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






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






31. Frictional + structural unemployment






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






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






34. Monetary






35. 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.






36. The average of all prices is falling






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






38. Temporary and associated with turnover in the labor market






39. Inflation caused by excess demand in the economy






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


41. Cost of living allowance






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






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






44. The sale of goods and services to households






45. Recurrent ups and downs of economic activity






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






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






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






49. 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






50. Cyclical unemployment is at 0