Test your basic knowledge |

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. Temporary and associated with turnover in the labor market






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






3. GDP = C + Ig + G + Xn






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






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






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






7. Recurrent ups and downs of economic activity






8. Periodic and predictable economic changes






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






10. The average of all prices is falling






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






12. Frictional + structural unemployment






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






14. Output sacrificed due to unemployment






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






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






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






18. Personal income less income taxes






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






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


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






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






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






24. Maximum output of business cycle






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






26. The sale of goods and services to households






27. 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






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






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






30. 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






31. Cost of living allowance






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






33. All investment spending by government and business firms






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






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






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






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






38. Inflation caused by excess demand in the economy






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






40. 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






41. Consumption - investment - government - and net exports






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






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






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






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






46. 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






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






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






49. 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.






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