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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. Personal income less income taxes






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

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






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






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






6. The sale of goods and services to households






7. Recurrent ups and downs of economic activity






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






9. Maximum output of business cycle






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






11. Frictional + structural unemployment






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






13. Consumption - investment - government - and net exports






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






15. 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






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






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






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






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






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






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






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






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






24. GDP = C + Ig + G + Xn






25. 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






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






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






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






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






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






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






32. Monetary






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






34. 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






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






36. 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






37. 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)






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






39. 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.






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






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






42. Inflation caused by excess demand in the economy






43. Output sacrificed due to unemployment






44. Cyclical unemployment is at 0






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






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






47. Temporary and associated with turnover in the labor market






48. All investment spending by government and business firms






49. The average of all prices is falling






50. Cost of living allowance