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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 that is available to resource suppliers and others before payment of personal taxes






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






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






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






5. 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






6. Output sacrificed due to unemployment






7. Maximum output of business cycle






8. Monetary






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






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






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






12. Cyclical unemployment is at 0






13. Personal income less income taxes






14. 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






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






16. Temporary and associated with turnover in the labor market






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






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






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






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






21. 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






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






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






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






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






26. Frictional + structural unemployment






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






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


29. Recurrent ups and downs of economic activity






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






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






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






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






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






35. Consumption - investment - government - and net exports






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






37. 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.






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






39. 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)






40. Periodic and predictable economic changes






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






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






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






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






45. Cost of living allowance






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






47. Inflation caused by excess demand in the economy






48. The average of all prices is falling






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






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