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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. Temporary and associated with turnover in the labor market






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






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






4. 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)






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






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






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






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






9. Cost of living allowance






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






11. 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






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






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






14. Recurrent ups and downs of economic activity






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






16. Consumption - investment - government - and net exports






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






18. The sale of goods and services to households






19. Monetary






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






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






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






23. Personal income less income taxes






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






25. Output sacrificed due to unemployment






26. Frictional + structural unemployment






27. GDP = C + Ig + G + Xn






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






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


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






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






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






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






34. 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






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






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






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






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






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






41. All investment spending by government and business firms






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






43. Maximum output of business cycle






44. 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.






45. Cyclical unemployment is at 0






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






47. 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






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






49. Inflation caused by excess demand in the economy






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