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






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






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






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






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






6. Periodic and predictable economic changes






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






8. 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






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






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






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






12. Consumption - investment - government - and net exports






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






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






15. GDP = C + Ig + G + Xn






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






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






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






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






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






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






22. Inflation caused by excess demand in the economy






23. 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






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






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






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






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






28. Recurrent ups and downs of economic activity






29. Cost of living allowance






30. 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






31. 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.






32. Monetary






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


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






35. Cyclical unemployment is at 0






36. Output sacrificed due to unemployment






37. The sale of goods and services to households






38. 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






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






40. All investment spending by government and business firms






41. Temporary and associated with turnover in the labor market






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






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






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






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






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






47. 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)






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






49. Maximum output of business cycle






50. The average of all prices is falling