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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. Output measured at base year prices - and thus adjusted






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






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






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






6. Cost of living allowance






7. Periodic and predictable economic changes






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






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






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






12. 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






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






14. Maximum output of business cycle






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






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






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






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






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






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






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






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






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






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






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






26. 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






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






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






29. Monetary






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






31. Frictional + structural unemployment






32. Temporary and associated with turnover in the labor market






33. Output sacrificed due to unemployment






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


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






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






37. All investment spending by government and business firms






38. GDP = C + Ig + G + Xn






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






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






41. 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)






42. 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






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






44. 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






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






46. Consumption - investment - government - and net exports






47. The sale of goods and services to households






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






49. Recurrent ups and downs of economic activity






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