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






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






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






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






5. Frictional + structural unemployment






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






7. 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






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






9. 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.






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






11. Consumption - investment - government - and net exports






12. The average of all prices is falling






13. The sale of goods and services to households






14. Cost of living allowance






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






16. Maximum output of business cycle






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






18. 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






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






20. 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






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






22. Personal income less income taxes






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






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






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






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






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






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






29. 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






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






31. Cyclical unemployment is at 0






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






33. All investment spending by government and business firms






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






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






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






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






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






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






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






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






42. Inflation caused by excess demand in the economy






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






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






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






46. Recurrent ups and downs of economic activity






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






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


49. Monetary






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