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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. Cost of living allowance






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






3. Inflation caused by excess demand in the economy






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






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






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






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






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






9. Temporary and associated with turnover in the labor market






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






11. Periodic and predictable economic changes






12. Monetary






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






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






15. 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






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






17. Recurrent ups and downs of economic activity






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






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






20. All investment spending by government and business firms






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






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






23. The sale of goods and services to households






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






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






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






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






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






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






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






31. 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






32. Output sacrificed due to unemployment






33. 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)






34. Personal income less income taxes






35. GDP = C + Ig + G + Xn






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






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






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






39. 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.






40. 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






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






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






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






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






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






46. Frictional + structural unemployment






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






48. Consumption - investment - government - and net exports






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






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