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Test your basic knowledge |
CLEP Macroeconomics: Measurement Of Economic Performance
Start Test
Study First
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. GDP = C + Ig + G + Xn
GDP equation (expenditure approach)
GDP gap
natural employment
expansion / recovery
2. The percentage of unemployed workers in the civilian labor force
unemployment rate
gross investment expenditures
Consumer Price Index (CPI)
how to determine GDP
3. 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)
inflation
circular flow diagram
expenditure approach
cost push
4. Inflation arising from the supply or cost side of the economy
cost push
COLA
labor force
net export expenditures
5. Those who are on ______ incomes are hurt most by inflation
national income
three kinds of Ig expenditures
fixed income
business cycle
6. A person who is available for and looking for work - but has none
unemployed
cost push
net export expenditures
structural unemployment
7. 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
rule of 70
frictional unemployment
deflation
five sources of income
8. Measures national income as the sum of the incomes received by productive resources in the economy; also called Gross Domestic Income (GDI)
income approach
natural employment
final goods
three kinds of Ig expenditures
9. 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.
three kinds of Ig expenditures
how to determine GDP
GDP (Gross Domestic Product)
net export expenditures
10. Total income earned by resource suppliers for their contributions to the production of the GNP
gross investment expenditures
national income
national income accounting
participation rate
11. Cyclical unemployment is at 0
inflation
five sources of income
seasonal changes
full employment
12. Phase of the business cycle where output and employment are at their lowest levels
trough
GDP equation (expenditure approach)
national income accounting
demand pull
13. Output measured at base year prices - and thus adjusted
trough
natural employment
structural / expectational inflation
real GDP
14. All people living in a society who are of legal age to work
natural employment
labor force
largest category of GDI
GDP measures the market value of annual output and it is a __________ measure.
15. For every 1% the actual unemployment rate exceeds the natural (frictional + structural) unemployment rate - a 2.5% GDP gap occurs
16. Personal income less income taxes
GDP measures the market value of annual output and it is a __________ measure.
deflation
disposable income
natural employment
17. Results from laborers having a mismatched skill set with what is demanded by the current labor market
four kinds of spending
structural unemployment
GDP gap
demand pull
18. 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
personal income
Gross National Product (GNP)
recession
labor force
19. The sale of goods and services to households
nominal GDP
consumption expenditures
national income accounting
five sources of income
20. Inflation caused by excess demand in the economy
demand pull
fixed income
non-production transactions
intermediate goods
21. Caused by the actions of people who have come to expect a certain amount of inflation in the economy
participation rate
intermediate goods
seasonal changes
structural / expectational 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
intermediate goods
cyclical / deficit demand unemployment
how to determine GDP
circular flow diagram
23. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories
Gross National Product (GNP)
four kinds of spending
deflation
three kinds of Ig expenditures
24. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance
intermediate goods
how to determine GDP
largest category of GDI
labor force
25. Allows us to keep tabs on the economic health of society and to develop policies that will improve that health
cost push
expansion / recovery
national income
national income accounting
26. Shows how money and goods and services flow between the various markets and players in the economy
circular flow diagram
real GDP
GDI equation
participation rate
27. All investment spending by government and business firms
income approach
net export expenditures
gross investment expenditures
labor force
28. Measures the prices of a fixed market basket of over 300 consumer goods and services purchased by the typical urban consumer
price index
Consumer Price Index (CPI)
structural unemployment
non-production transactions
29. Periodic and predictable economic changes
inflation
natural employment
seasonal changes
participation rate
30. Excess unemployment caused because the economy deviates from the long run output potential of the economy
largest category of GDI
government expenditures
cyclical / deficit demand unemployment
GDP (Gross Domestic Product)
31. Maximum output of business cycle
peak
net export expenditures
GDP (Gross Domestic Product)
COLA
32. Measures the amount of goods and services one's money can buy; measures purchasing power
real income
recession
participation rate
disposable income
33. Second-hand sales (goods not produced that year) and financial transactions (moving money from x to y); not counted in GDP
inflation
GDP gap
GDP measures the market value of annual output and it is a __________ measure.
non-production transactions
34. Frictional + structural unemployment
expansion / recovery
income approach
natural employment
nominal income
35. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP
business cycle
final goods
circular flow diagram
GDP equation (expenditure approach)
36. 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
three kinds of Ig expenditures
price index
deflation
five sources of income
37. (1) wages - (2) rents - (3) profits - (4) interest - (5) misc
government expenditures
Okun's Law
GDP equation (expenditure approach)
five sources of income
38. The average of all prices is falling
GDI equation
GDP gap
intermediate goods
deflation
39. A basic accounting measure of total production of goods and services of the national economy in one year
intermediate goods
national income
structural / expectational inflation
GDP (Gross Domestic Product)
40. Recurrent ups and downs of economic activity
business cycle
inflation
net export expenditures
demand pull
41. Cost of living allowance
COLA
five sources of income
peak
non-production transactions
42. GDI = w + i + r + pi + misc
consumption expenditures
inflation
circular flow diagram
GDI equation
43. A sustained rise in the general price level of an economy
unemployment rate
inflation
full employment
unemployed
44. (base year basket valued at current year prices/base year basket valued at base year prices) x 100
CPI equation
government expenditures
five sources of income
expansion / recovery
45. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions
expansion / recovery
non-production transactions
government expenditures
seasonal unemployment
46. The total net sales of goods sold abroad minus the total net spent on purchases from other countries
net export expenditures
participation rate
structural unemployment
largest category of GDI
47. Consumption - investment - government - and net exports
business cycle
government expenditures
four kinds of spending
five sources of income
48. All people who are either employed or unemployed - but excludes people who are institutionalized or in the military
civilian labor force
frictional unemployment
personal income
GDP measures the market value of annual output and it is a __________ measure.
49. 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
CPI equation
recession
participation rate
deflation
50. The number of dollars one receives as wages - rent - interest or profit
disposable income
fixed income
real GDP
nominal income