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






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






3. Recurrent ups and downs of economic activity






4. 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






5. Monetary






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






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






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






9. Personal income less income taxes






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






11. All investment spending by government and business firms






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






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






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






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






16. Temporary and associated with turnover in the labor market






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






18. Output sacrificed due to unemployment






19. The average of all prices is falling






20. 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)






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






22. Inflation caused by excess demand in the economy






23. Periodic and predictable economic changes






24. 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






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






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


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






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






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






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






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






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






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






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






35. Consumption - investment - government - and net exports






36. Cost of living allowance






37. Maximum output of business cycle






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






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






40. 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






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






42. Cyclical unemployment is at 0






43. The sale of goods and services to households






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






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






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






47. 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






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






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






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