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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. Output sacrificed due to unemployment






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






3. Monetary






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






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






6. Cyclical unemployment is at 0






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






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






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.






10. The sale of goods and services to households






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






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






13. Recurrent ups and downs of economic activity






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






15. Consumption - investment - government - and net exports






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






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






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






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






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






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






22. Periodic and predictable economic changes






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






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






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






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






27. 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






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






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






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






31. 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)






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






33. 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






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






35. All investment spending by government and business firms






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


37. Frictional + structural unemployment






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






39. GDP = C + Ig + G + Xn






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






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






42. 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






43. Personal income less income taxes






44. Cost of living allowance






45. The average of all prices is falling






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






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






48. Temporary and associated with turnover in the labor market






49. Inflation caused by excess demand in the economy






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