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






2. 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






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


4. 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)






5. Temporary and associated with turnover in the labor market






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






7. Inflation caused by excess demand in the economy






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






9. GDP = C + Ig + G + Xn






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






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






12. All investment spending by government and business firms






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






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






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






16. Recurrent ups and downs of economic activity






17. 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






18. Cyclical unemployment is at 0






19. 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






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






21. 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






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






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






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






25. Consumption - investment - government - and net exports






26. Output sacrificed due to unemployment






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






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






29. Frictional + structural unemployment






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






31. Periodic and predictable economic changes






32. Maximum output of business cycle






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






34. The average of all prices is falling






35. Monetary






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






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






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






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






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






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






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






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






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






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






46. Personal income less income taxes






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






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






49. The sale of goods and services to households






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