Test your basic knowledge |

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






2. Temporary and associated with turnover in the labor market






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






4. 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.






5. The average of all prices is falling






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






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


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






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






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






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






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






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






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






15. Cyclical unemployment is at 0






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






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






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






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






20. GDP = C + Ig + G + Xn






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






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






23. Maximum output of business cycle






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






25. The sale of goods and services to households






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






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






28. Personal income less income taxes






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






30. 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






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. Monetary






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






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






35. 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






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






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






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






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






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






41. Cost of living allowance






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






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






44. Recurrent ups and downs of economic activity






45. All investment spending by government and business firms






46. 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






47. Inflation caused by excess demand in the economy






48. Consumption - investment - government - and net exports






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






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