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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. 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.






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






3. 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






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






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






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






7. Maximum output of business cycle






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






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






10. GDP = C + Ig + G + Xn






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






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






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






14. Recurrent ups and downs of economic activity






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






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






17. The average of all prices is falling






18. Cyclical unemployment is at 0






19. Temporary and associated with turnover in the labor market






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






21. Cost of living allowance






22. Consumption - investment - government - and net exports






23. 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






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






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






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






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


28. Output sacrificed due to unemployment






29. Monetary






30. Periodic and predictable economic changes






31. The sale of goods and services to households






32. 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






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






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






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






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






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






38. 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






39. Personal income less income taxes






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






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






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






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






44. All investment spending by government and business firms






45. 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)






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






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






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






49. Frictional + structural unemployment






50. 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