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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. All investment spending by government and business firms






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






3. Temporary and associated with turnover in the labor market






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






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






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






7. Output sacrificed due to unemployment






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. 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






10. Personal income less income taxes






11. 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






12. Cost of living allowance






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






14. Recurrent ups and downs of economic activity






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






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






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






18. The sale of goods and services to households






19. Inflation caused by excess demand in the economy






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






21. GDP = C + Ig + G + Xn






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






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






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






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






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






27. 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)






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






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






30. Periodic and predictable economic changes






31. Cyclical unemployment is at 0






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






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






34. 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.






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






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






37. The average of all prices is falling






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






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






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






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






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






43. Maximum output of business cycle






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






45. Frictional + structural unemployment






46. Consumption - investment - government - and net exports






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






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






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






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