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


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






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






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






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






6. Cost of living allowance






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






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






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






10. Frictional + structural unemployment






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






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






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






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






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






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






17. GDP = C + Ig + G + Xn






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






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






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






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






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






23. Output sacrificed due to unemployment






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






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






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






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






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






29. 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






30. Cyclical unemployment is at 0






31. The average of all prices is falling






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






34. 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






35. The sale of goods and services to households






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






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






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






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






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






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






42. All investment spending by government and business firms






43. Inflation caused by excess demand in the economy






44. Monetary






45. 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






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






47. 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






48. Periodic and predictable economic changes






49. Personal income less income taxes






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






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