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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. Temporary and associated with turnover in the labor market






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






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






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






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






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






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






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






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






10. 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






11. The average of all prices is falling






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






13. Consumption - investment - government - and net exports






14. The sale of goods and services to households






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






16. 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






17. Monetary






18. 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)






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






21. Periodic and predictable economic changes






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






23. GDP = C + Ig + G + Xn






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






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






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






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






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






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






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






31. Output sacrificed due to unemployment






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






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






34. All investment spending by government and business firms






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






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






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






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






39. 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






40. Cost of living allowance






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






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






43. Frictional + structural unemployment






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






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






46. Personal income less income taxes






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


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






49. Inflation caused by excess demand in the economy






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