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






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






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






4. Frictional + structural unemployment






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






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






7. GDP = C + Ig + G + Xn






8. Output sacrificed due to unemployment






9. The sale of goods and services to households






10. 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






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






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






13. 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






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






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






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






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






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


19. Cost of living allowance






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






21. All investment spending by government and business firms






22. Periodic and predictable economic changes






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






24. 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






25. Monetary






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






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






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






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






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






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






32. The average of all prices is falling






33. 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






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






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






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






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






38. Recurrent ups and downs of economic activity






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






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






41. Inflation caused by excess demand in the economy






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






43. Consumption - investment - government - and net exports






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






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






46. Maximum output of business cycle






47. 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






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






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






50. Personal income less income taxes