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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. 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






2. 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.






3. 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






4. 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






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






6. Personal income less income taxes






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






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






9. Recurrent ups and downs of economic activity






10. Cost of living allowance






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






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






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






14. Consumption - investment - government - and net exports






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






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






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






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






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






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






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






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






23. Maximum output of business cycle






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






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






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






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






28. Monetary






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






30. The sale of goods and services to households






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






32. Periodic and predictable economic changes






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






34. All investment spending by government and business firms






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






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






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






38. Inflation caused by excess demand in the economy






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






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






41. GDP = C + Ig + G + Xn






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






43. Cyclical unemployment is at 0






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






45. The average of all prices is falling






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






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






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


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






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