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. Recurrent ups and downs of economic activity






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






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






5. 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






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






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






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






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






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






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






12. Personal income less income taxes






13. Cost of living allowance






14. Consumption - investment - government - and net exports






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






16. Maximum output of business cycle






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






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






19. Inflation caused by excess demand in the economy






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






21. 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






22. Cyclical unemployment is at 0






23. 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






24. GDP = C + Ig + G + Xn






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






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






27. Output sacrificed due to unemployment






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






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






30. 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






31. All investment spending by government and business firms






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






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






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






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






36. Monetary






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






38. 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.






39. The average of all prices is falling






40. Temporary and associated with turnover in the labor market






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






42. Frictional + structural unemployment






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






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






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






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






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






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


49. 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)






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