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






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






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






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






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






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






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






8. Personal income less income taxes






9. 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






10. Output sacrificed due to unemployment






11. GDP = C + Ig + G + Xn






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






13. Periodic and predictable economic changes






14. Frictional + structural unemployment






15. Cost of living allowance






16. 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






17. Monetary






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






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






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






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






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






23. Consumption - investment - government - and net exports






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






25. 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






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






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






28. Inflation caused by excess demand in the economy






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






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






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






32. Maximum output of business cycle






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






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






35. The average of all prices is falling






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


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






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






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






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






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






42. All investment spending by government and business firms






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






44. Cyclical unemployment is at 0






45. Temporary and associated with turnover in the labor market






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






47. 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.






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






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






50. Recurrent ups and downs of economic activity