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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. Periodic and predictable economic changes






2. 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






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






4. The average of all prices is falling






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






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






7. Monetary






8. Cyclical unemployment is at 0






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






10. 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.






11. GDP = C + Ig + G + Xn






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






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






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






15. 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






16. 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






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






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






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






20. Consumption - investment - government - and net exports






21. Maximum output of business cycle






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






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






24. The sale of goods and services to households






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






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






27. 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)






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


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






30. Frictional + structural unemployment






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






32. Cost of living allowance






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






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. Temporary and associated with turnover in the labor market






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






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






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






39. Inflation caused by excess demand in the economy






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






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






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






43. Recurrent ups and downs of economic activity






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






45. Personal income less income taxes






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






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






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






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






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