Test your basic knowledge |

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. 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






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






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






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






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






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






7. Cyclical unemployment is at 0






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






9. The average of all prices is falling






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






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






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


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






14. Cost of living allowance






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






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






17. GDP = C + Ig + G + Xn






18. Inflation caused by excess demand in the economy






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






20. Output sacrificed due to unemployment






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






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






23. 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)






24. 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






25. Temporary and associated with turnover in the labor market






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






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






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






29. Maximum output of business cycle






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






31. Recurrent ups and downs of economic activity






32. The sale of goods and services to households






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






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






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






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






37. Periodic and predictable economic changes






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






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






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






41. Frictional + structural unemployment






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






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






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






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






46. 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.






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






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






49. Monetary






50. Personal income less income taxes