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






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






3. 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






4. Maximum output of business cycle






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






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






8. All investment spending by government and business firms






9. Cyclical unemployment is at 0






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






11. 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.






12. GDP = C + Ig + G + Xn






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






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






15. The average of all prices is falling






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






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






18. Recurrent ups and downs of economic activity






19. Frictional + structural unemployment






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






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






22. Consumption - investment - government - and net exports






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






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






25. Inflation caused by excess demand in the economy






26. 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






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






28. 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






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






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






31. The sale of goods and services to households






32. Temporary and associated with turnover in the labor market






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






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






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






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






37. Output sacrificed due to unemployment






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






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






40. 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






41. Periodic and predictable economic changes






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






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






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






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






46. Cost of living allowance






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






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






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






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