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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. 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






2. Cost of living allowance






3. Recurrent ups and downs of economic activity






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






5. Cyclical unemployment is at 0






6. GDP = C + Ig + G + Xn






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






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






9. The sale of goods and services to households






10. Inflation caused by excess demand in the economy






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






12. Monetary






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






14. 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)






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






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






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






18. Periodic and predictable economic changes






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






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






21. Frictional + structural unemployment






22. Temporary and associated with turnover in the labor market






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






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






25. Maximum output of business cycle






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






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






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






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






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






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






32. Output sacrificed due to unemployment






33. 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.






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






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






36. 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






37. The average of all prices is falling






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






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






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






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






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






43. 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






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






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






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






47. All investment spending by government and business firms






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






49. 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






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