SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP
personal income
Gross National Product (GNP)
net export expenditures
final goods
2. Measures national income as the sum of the incomes received by productive resources in the economy; also called Gross Domestic Income (GDI)
deflation
GDP equation (expenditure approach)
government expenditures
income approach
3. 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
structural / expectational inflation
natural employment
price index
seasonal unemployment
4. Second-hand sales (goods not produced that year) and financial transactions (moving money from x to y); not counted in GDP
Okun's Law
GDP measures the market value of annual output and it is a __________ measure.
participation rate
non-production transactions
5. All people who are either employed or unemployed - but excludes people who are institutionalized or in the military
GDP measures the market value of annual output and it is a __________ measure.
civilian labor force
how to determine GDP
GDP (Gross Domestic Product)
6. Monetary
demand pull
GDP measures the market value of annual output and it is a __________ measure.
Okun's Law
trough
7. (base year basket valued at current year prices/base year basket valued at base year prices) x 100
Gross National Product (GNP)
GDP measures the market value of annual output and it is a __________ measure.
CPI equation
full employment
8. Output sacrificed due to unemployment
GDP gap
natural employment
largest category of GDI
Gross National Product (GNP)
9. Temporary and associated with turnover in the labor market
seasonal changes
largest category of GDI
real GDP
frictional unemployment
10. Consumption - investment - government - and net exports
seasonal unemployment
four kinds of spending
Gross National Product (GNP)
frictional unemployment
11. The number of dollars one receives as wages - rent - interest or profit
trough
price index
nominal income
seasonal unemployment
12. 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.
COLA
GDP equation (expenditure approach)
expenditure approach
how to determine GDP
13. 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)
expansion / recovery
four kinds of spending
GDP (Gross Domestic Product)
expenditure approach
14. Government purchase of goods and services; does not include transfer payments and expenditures for servicing the national debt or investment goods
GDI equation
government expenditures
expansion / recovery
fixed income
15. A person who is available for and looking for work - but has none
participation rate
final goods
unemployed
four kinds of spending
16. GDP = C + Ig + G + Xn
largest category of GDI
civilian labor force
GDP equation (expenditure approach)
GDI equation
17. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance
personal income
inflation
largest category of GDI
five sources of income
18. Inflation caused by excess demand in the economy
unemployed
demand pull
frictional unemployment
nominal income
19. All investment spending by government and business firms
gross investment expenditures
frictional unemployment
COLA
real income
20. Phase of the business cycle where output and employment begin to move toward full employment
expansion / recovery
government expenditures
GDP (Gross Domestic Product)
four kinds of spending
21. Total income earned by resource suppliers for their contributions to the production of the GNP
cyclical / deficit demand unemployment
national income
rule of 70
non-production transactions
22. Income earned that is available to resource suppliers and others before payment of personal taxes
final goods
personal income
GDP (Gross Domestic Product)
income approach
23. The percentage of unemployed workers in the civilian labor force
unemployment rate
price index
structural unemployment
cost push
24. Frictional + structural unemployment
gross investment expenditures
labor force
natural employment
GDP (Gross Domestic Product)
25. Excess unemployment caused because the economy deviates from the long run output potential of the economy
trough
cyclical / deficit demand unemployment
final goods
net export expenditures
26. (1) wages - (2) rents - (3) profits - (4) interest - (5) misc
four kinds of spending
recession
Okun's Law
five sources of income
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
participation rate
real GDP
recession
inflation
28. A basic accounting measure of total production of goods and services of the national economy in one year
GDP gap
government expenditures
participation rate
GDP (Gross Domestic Product)
29. For every 1% the actual unemployment rate exceeds the natural (frictional + structural) unemployment rate - a 2.5% GDP gap occurs
30. Those who are on ______ incomes are hurt most by inflation
fixed income
peak
non-production transactions
intermediate goods
31. Recurrent ups and downs of economic activity
business cycle
gross investment expenditures
three kinds of Ig expenditures
disposable income
32. Cost of living allowance
GDI equation
GDP Price Index
non-production transactions
COLA
33. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions
seasonal unemployment
GDP Price Index
how to determine GDP
CPI equation
34. 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
cyclical / deficit demand unemployment
disposable income
three kinds of Ig expenditures
GDP Price Index
35. Periodic and predictable economic changes
full employment
five sources of income
national income accounting
seasonal changes
36. Measures the prices of a fixed market basket of over 300 consumer goods and services purchased by the typical urban consumer
trough
price index
gross investment expenditures
Consumer Price Index (CPI)
37. Allows us to keep tabs on the economic health of society and to develop policies that will improve that health
peak
national income accounting
labor force
Gross National Product (GNP)
38. The civilian labor force expressed as a percentage of the labor force population
price index
national income accounting
five sources of income
participation rate
39. Phase of the business cycle where output and employment are at their lowest levels
GDP (Gross Domestic Product)
GDP gap
seasonal unemployment
trough
40. Those that are used to produce other goods that will eventually be sold (miller sells flour to a baker); not counted in GDP
unemployed
national income
civilian labor force
intermediate goods
41. Inflation arising from the supply or cost side of the economy
cost push
demand pull
unemployed
disposable income
42. Caused by the actions of people who have come to expect a certain amount of inflation in the economy
structural / expectational inflation
net export expenditures
GDP Price Index
national income accounting
43. Output measured at current prices - and thus unadjusted figure for GDP
structural / expectational inflation
unemployed
five sources of income
nominal GDP
44. Results from laborers having a mismatched skill set with what is demanded by the current labor market
largest category of GDI
consumption expenditures
how to determine GDP
structural unemployment
45. Maximum output of business cycle
price index
intermediate goods
GDI equation
peak
46. Personal income less income taxes
CPI equation
disposable income
GDP Price Index
COLA
47. Cyclical unemployment is at 0
seasonal unemployment
deflation
four kinds of spending
full employment
48. The total net sales of goods sold abroad minus the total net spent on purchases from other countries
net export expenditures
civilian labor force
fixed income
Gross National Product (GNP)
49. A sustained rise in the general price level of an economy
income approach
natural employment
final goods
inflation
50. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories
GDI equation
circular flow diagram
national income accounting
three kinds of Ig expenditures