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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. Cyclical unemployment is at 0






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






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






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






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






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






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






8. 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






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






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






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






12. Output sacrificed due to unemployment






13. All investment spending by government and business firms






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






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






16. 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






17. GDP = C + Ig + G + Xn






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






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






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






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






22. 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






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






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






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






26. Monetary






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






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






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






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






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






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


33. Temporary and associated with turnover in the labor market






34. Frictional + structural unemployment






35. Cost of living allowance






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






37. Maximum output of business cycle






38. Recurrent ups and downs of economic activity






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






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






41. 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.






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






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






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






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






47. Consumption - investment - government - and net exports






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






49. Personal income less income taxes






50. Inflation caused by excess demand in the economy