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Test your basic knowledge |
CLEP Macroeconomics: Measurement Of Economic Performance
Start Test
Study First
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. Total income earned by resource suppliers for their contributions to the production of the GNP
full employment
national income
net export expenditures
real GDP
2. Cyclical unemployment is at 0
structural / expectational inflation
full employment
government expenditures
trough
3. (base year basket valued at current year prices/base year basket valued at base year prices) x 100
CPI equation
rule of 70
cost push
Consumer Price Index (CPI)
4. 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
income approach
gross investment expenditures
GDP Price Index
national income accounting
5. (1) wages - (2) rents - (3) profits - (4) interest - (5) misc
five sources of income
fixed income
intermediate goods
GDP measures the market value of annual output and it is a __________ measure.
6. Shows how money and goods and services flow between the various markets and players in the economy
GDP (Gross Domestic Product)
price index
circular flow diagram
GDP equation (expenditure approach)
7. GDP = C + Ig + G + Xn
price index
GDP equation (expenditure approach)
civilian labor force
expansion / recovery
8. A person who is available for and looking for work - but has none
peak
unemployed
circular flow diagram
participation rate
9. The total net sales of goods sold abroad minus the total net spent on purchases from other countries
income approach
expansion / recovery
net export expenditures
deflation
10. The average of all prices is falling
how to determine GDP
real income
deflation
five sources of income
11. The percentage of unemployed workers in the civilian labor force
unemployment rate
circular flow diagram
gross investment expenditures
frictional unemployment
12. 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
GDP Price Index
structural unemployment
demand pull
recession
13. Results from laborers having a mismatched skill set with what is demanded by the current labor market
how to determine GDP
structural unemployment
national income accounting
GDP gap
14. Temporary and associated with turnover in the labor market
four kinds of spending
GDP equation (expenditure approach)
five sources of income
frictional unemployment
15. Output measured at current prices - and thus unadjusted figure for GDP
GDP gap
nominal GDP
seasonal changes
nominal income
16. 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.
how to determine GDP
COLA
cyclical / deficit demand unemployment
three kinds of Ig expenditures
17. Inflation arising from the supply or cost side of the economy
cost push
personal income
Consumer Price Index (CPI)
expansion / recovery
18. All investment spending by government and business firms
disposable income
gross investment expenditures
Okun's Law
natural employment
19. Monetary
seasonal unemployment
GDP measures the market value of annual output and it is a __________ measure.
civilian labor force
intermediate goods
20. 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)
expenditure approach
GDP Price Index
how to determine GDP
civilian labor force
21. Measures national income as the sum of the incomes received by productive resources in the economy; also called Gross Domestic Income (GDI)
Gross National Product (GNP)
income approach
civilian labor force
structural / expectational inflation
22. Those that are used to produce other goods that will eventually be sold (miller sells flour to a baker); not counted in GDP
intermediate goods
consumption expenditures
disposable income
GDP gap
23. Excess unemployment caused because the economy deviates from the long run output potential of the economy
national income
cyclical / deficit demand unemployment
inflation
GDI equation
24. The number of dollars one receives as wages - rent - interest or profit
nominal income
cyclical / deficit demand unemployment
CPI equation
circular flow diagram
25. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions
structural unemployment
seasonal unemployment
unemployment rate
real GDP
26. A basic accounting measure of total production of goods and services of the national economy in one year
five sources of income
recession
GDP Price Index
GDP (Gross Domestic Product)
27. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance
cyclical / deficit demand unemployment
non-production transactions
largest category of GDI
natural employment
28. Output sacrificed due to unemployment
national income accounting
GDP gap
real GDP
Okun's Law
29. Phase of the business cycle where output and employment are at their lowest levels
GDP equation (expenditure approach)
national income accounting
personal income
trough
30. Caused by the actions of people who have come to expect a certain amount of inflation in the economy
net export expenditures
COLA
structural / expectational inflation
expenditure approach
31. All people living in a society who are of legal age to work
final goods
national income accounting
expansion / recovery
labor force
32. Second-hand sales (goods not produced that year) and financial transactions (moving money from x to y); not counted in GDP
seasonal changes
GDP measures the market value of annual output and it is a __________ measure.
non-production transactions
Consumer Price Index (CPI)
33. Allows us to keep tabs on the economic health of society and to develop policies that will improve that health
national income accounting
frictional unemployment
national income
GDP gap
34. Inflation caused by excess demand in the economy
real income
demand pull
four kinds of spending
seasonal unemployment
35. Frictional + structural unemployment
natural employment
disposable income
participation rate
GDP (Gross Domestic Product)
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
five sources of income
four kinds of spending
price index
Consumer Price Index (CPI)
37. Recurrent ups and downs of economic activity
nominal GDP
business cycle
government expenditures
personal income
38. Personal income less income taxes
gross investment expenditures
GDI equation
national income accounting
disposable income
39. All people who are either employed or unemployed - but excludes people who are institutionalized or in the military
expenditure approach
civilian labor force
personal income
income approach
40. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories
three kinds of Ig expenditures
cost push
civilian labor force
gross investment expenditures
41. GDI = w + i + r + pi + misc
GDI equation
expenditure approach
trough
non-production transactions
42. Consumption - investment - government - and net exports
four kinds of spending
business cycle
CPI equation
disposable income
43. Income earned that is available to resource suppliers and others before payment of personal taxes
personal income
national income accounting
price index
final goods
44. Measures the prices of a fixed market basket of over 300 consumer goods and services purchased by the typical urban consumer
net export expenditures
Consumer Price Index (CPI)
full employment
real GDP
45. Those who are on ______ incomes are hurt most by inflation
fixed income
net export expenditures
cost push
nominal income
46. Maximum output of business cycle
gross investment expenditures
peak
business cycle
full employment
47. The civilian labor force expressed as a percentage of the labor force population
national income
participation rate
expenditure approach
rule of 70
48. 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
deflation
rule of 70
Gross National Product (GNP)
nominal income
49. Output measured at base year prices - and thus adjusted
real GDP
peak
inflation
nominal income
50. Government purchase of goods and services; does not include transfer payments and expenditures for servicing the national debt or investment goods
civilian labor force
intermediate goods
government expenditures
net export expenditures