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






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






3. Output sacrificed due to unemployment






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






5. Consumption - investment - government - and net exports






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






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






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






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






10. GDP = C + Ig + G + Xn






11. Cost of living allowance






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






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






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






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






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






17. The average of all prices is falling






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






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






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






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






22. Periodic and predictable economic changes






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






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






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






26. Monetary






27. Recurrent ups and downs of economic activity






28. All investment spending by government and business firms






29. 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






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






31. Frictional + structural unemployment






32. Personal income less income taxes






33. 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






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






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






37. Maximum output of business cycle






38. 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






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






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


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






42. Cyclical unemployment is at 0






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






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






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






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






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






48. Inflation caused by excess demand in the economy






49. 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)






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