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CLEP Macroeconomics: Measurement Of Economic Performance

Subjects : clep, economics
Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. Measures national income as the sum of the incomes received by productive resources in the economy; also called Gross Domestic Income (GDI)






2. 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.






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






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






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






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






7. 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






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






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






10. Inflation caused by excess demand in the economy






11. Temporary and associated with turnover in the labor market






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






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






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






15. All investment spending by government and business firms






16. Maximum output of business cycle






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






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






19. Frictional + structural unemployment






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






21. 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






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






23. The sale of goods and services to households






24. Cyclical unemployment is at 0






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






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






27. 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






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






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


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






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






32. 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)






33. Cost of living allowance






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






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






36. Consumption - investment - government - and net exports






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






38. 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






39. Personal income less income taxes






40. The average of all prices is falling






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






42. Periodic and predictable economic changes






43. GDP = C + Ig + G + Xn






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






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






46. Output sacrificed due to unemployment






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






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






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






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