Test your basic knowledge |

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






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






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






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






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






6. Inflation caused by excess demand in the economy






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






8. Frictional + structural unemployment






9. Output sacrificed due to unemployment






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






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






12. Periodic and predictable economic changes






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






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






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






17. Cost of living allowance






18. Consumption - investment - government - and net exports






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






20. Personal income less income taxes






21. Temporary and associated with turnover in the labor market






22. Monetary






23. The sale of goods and services to households






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






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. 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.






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






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






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






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






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






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






33. The average of all prices is falling






34. GDP = C + Ig + G + Xn






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






36. 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






37. Recurrent ups and downs of economic activity






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






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






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






41. 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






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






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






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






45. 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






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






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






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






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






50. All investment spending by government and business firms