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






2. The sale of goods and services to households






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






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






5. 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)






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






7. Periodic and predictable economic changes






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






9. Monetary






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






11. 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






12. 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






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






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






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






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






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






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






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






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






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






22. GDP = C + Ig + G + Xn






23. Consumption - investment - government - and net exports






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






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






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






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


28. Cost of living allowance






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






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






31. The average of all prices is falling






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






33. Maximum output of business cycle






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






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






36. 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.






37. 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






38. Personal income less income taxes






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






40. Recurrent ups and downs of economic activity






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






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






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






44. Cyclical unemployment is at 0






45. 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






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






47. All investment spending by government and business firms






48. Inflation caused by excess demand in the economy






49. Output sacrificed due to unemployment






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