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






2. Inflation caused by excess demand in the economy






3. 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






4. 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.






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






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






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






8. 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






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


10. 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






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






12. Frictional + structural unemployment






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






14. Personal income less income taxes






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






16. 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






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






18. Recurrent ups and downs of economic activity






19. Cyclical unemployment is at 0






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






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






22. The sale of goods and services to households






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






24. Maximum output of business cycle






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






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






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






28. 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






29. 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)






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






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






32. Periodic and predictable economic changes






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






34. Monetary






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






36. All investment spending by government and business firms






37. Temporary and associated with turnover in the labor market






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






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






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






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






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






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






44. Consumption - investment - government - and net exports






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






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






47. The average of all prices is falling






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






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






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