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






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






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






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






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






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






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






8. Cyclical unemployment is at 0






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






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






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






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






13. The average of all prices is falling






14. Personal income less income taxes






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






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






17. All investment spending by government and business firms






18. Inflation caused by excess demand in the economy






19. Frictional + structural unemployment






20. Monetary






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






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






23. Recurrent ups and downs of economic activity






24. 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






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






26. Consumption - investment - government - and net exports






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






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






29. Temporary and associated with turnover in the labor market






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






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






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






33. 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






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






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






36. 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.






37. Output sacrificed due to unemployment






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






39. 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






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






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






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






43. 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)






44. GDP = C + Ig + G + Xn






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






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






47. 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






48. Periodic and predictable economic changes






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






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