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






2. 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






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






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


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






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






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






8. Recurrent ups and downs of economic activity






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






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






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






12. 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






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






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






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






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






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






18. 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






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






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






21. Cyclical unemployment is at 0






22. Frictional + structural unemployment






23. Output sacrificed due to unemployment






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






25. The average of all prices is falling






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






27. Maximum output of business cycle






28. Monetary






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






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






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






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






33. 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






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






35. Cost of living allowance






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






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






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






39. Inflation caused by excess demand in the economy






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






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






42. Periodic and predictable economic changes






43. The sale of goods and services to households






44. Personal income less income taxes






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






46. 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.






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






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






49. Consumption - investment - government - and net exports






50. 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)