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






2. Recurrent ups and downs of economic activity






3. Maximum output of business cycle






4. 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






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






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






7. GDP = C + Ig + G + Xn






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






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






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






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






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






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






14. The average of all prices is falling






15. The sale of goods and services to households






16. 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






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






18. Temporary and associated with turnover in the labor market






19. All investment spending by government and business firms






20. Consumption - investment - government - and net exports






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






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






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






24. Personal income less income taxes






25. Inflation caused by excess demand in the economy






26. 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






27. 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.






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






29. Output sacrificed due to unemployment






30. Cyclical unemployment is at 0






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






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






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






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






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






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






37. Cost of living allowance






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






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






40. Periodic and predictable economic changes






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






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






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






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






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






46. Frictional + structural unemployment






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






48. 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)






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






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