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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. Output sacrificed due to unemployment






2. 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






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






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






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






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






7. The sale of goods and services to households






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






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






10. Frictional + structural unemployment






11. Cyclical unemployment is at 0






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






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






14. 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






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






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






17. Periodic and predictable economic changes






18. Cost of living allowance






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


20. 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






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






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






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






24. Personal income less income taxes






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






26. Maximum output of business cycle






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






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






29. Temporary and associated with turnover in the labor market






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






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






32. All investment spending by government and business firms






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. Monetary






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






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






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






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






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






40. Consumption - investment - government - and net exports






41. Inflation caused by excess demand in the economy






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






43. 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)






44. 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






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






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






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






48. Recurrent ups and downs of economic activity






49. GDP = C + Ig + G + Xn






50. 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.