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






2. 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






3. All investment spending by government and business firms






4. The sale of goods and services to households






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






6. Frictional + structural unemployment






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






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






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






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






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






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






13. The average of all prices is falling






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






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


16. 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






17. Cyclical unemployment is at 0






18. Personal income less income taxes






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






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






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






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






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






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






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






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






27. Output sacrificed due to unemployment






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






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






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






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






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






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






34. Monetary






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






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






37. Recurrent ups and downs of economic activity






38. Inflation caused by excess demand in the economy






39. 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.






40. Consumption - investment - government - and net exports






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






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






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






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






45. GDP = C + Ig + G + Xn






46. Temporary and associated with turnover in the labor market






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






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






49. 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






50. 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)