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






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






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






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






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






6. 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.






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






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






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






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






11. Monetary






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






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






14. Maximum output of business cycle






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






16. 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)






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






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






19. Inflation caused by excess demand in the economy






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






21. All investment spending by government and business firms






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






23. Output sacrificed due to unemployment






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






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






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






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






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






29. Consumption - investment - government - and net exports






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






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






32. The sale of goods and services to households






33. Temporary and associated with turnover in the labor market






34. Cyclical unemployment is at 0






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






36. 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






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






38. Recurrent ups and downs of economic activity






39. 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






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






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






42. Personal income less income taxes






43. 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






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






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






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






47. The average of all prices is falling






48. Cost of living allowance






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






50. 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