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. 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






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






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






4. Cyclical unemployment is at 0






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






6. Output sacrificed due to unemployment






7. Periodic and predictable economic changes






8. 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






9. Recurrent ups and downs of economic activity






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






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






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






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






14. 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)






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






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






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






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






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






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






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






22. All investment spending by government and business firms






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






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






25. The sale of goods and services to households






26. Maximum output of business cycle






27. Frictional + structural unemployment






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






29. 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






30. Monetary






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






32. Temporary and associated with turnover in the labor market






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






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






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






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






37. Inflation caused by excess demand in the economy






38. Consumption - investment - government - and net exports






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






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






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






42. Personal income less income taxes






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






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






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






46. 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






47. Cost of living allowance






48. 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.






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






50. GDP = C + Ig + G + Xn