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






2. All investment spending by government and business firms






3. Frictional + structural unemployment






4. GDP = C + Ig + G + Xn






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






6. 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)






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






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






9. 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






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






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






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






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






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






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






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






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






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


19. The average of all prices is falling






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






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






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






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






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






25. 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






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






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






28. 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






29. Output sacrificed due to unemployment






30. The sale of goods and services to households






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






32. Periodic and predictable economic changes






33. Monetary






34. 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.






35. Temporary and associated with turnover in the labor market






36. 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






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






38. Personal income less income taxes






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






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






41. Cost of living allowance






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






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






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






45. Cyclical unemployment is at 0






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






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






48. Consumption - investment - government - and net exports






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






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