SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
CLEP Macroeconomics: Measurement Of Economic Performance
Start Test
Study First
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. 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
GDP measures the market value of annual output and it is a __________ measure.
price index
rule of 70
personal income
2. (1) wages - (2) rents - (3) profits - (4) interest - (5) misc
five sources of income
deflation
disposable income
GDP gap
3. Measures the amount of goods and services one's money can buy; measures purchasing power
real income
intermediate goods
final goods
inflation
4. Temporary and associated with turnover in the labor market
Gross National Product (GNP)
recession
frictional unemployment
natural employment
5. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP
four kinds of spending
final goods
real GDP
five sources of income
6. Monetary
deflation
labor force
GDP measures the market value of annual output and it is a __________ measure.
rule of 70
7. Caused by the actions of people who have come to expect a certain amount of inflation in the economy
GDP equation (expenditure approach)
inflation
structural / expectational inflation
structural unemployment
8. Output measured at current prices - and thus unadjusted figure for GDP
nominal GDP
GDP measures the market value of annual output and it is a __________ measure.
national income
GDP (Gross Domestic Product)
9. The percentage of unemployed workers in the civilian labor force
how to determine GDP
expansion / recovery
labor force
unemployment rate
10. Periodic and predictable economic changes
seasonal changes
non-production transactions
rule of 70
circular flow diagram
11. For every 1% the actual unemployment rate exceeds the natural (frictional + structural) unemployment rate - a 2.5% GDP gap occurs
12. Maximum output of business cycle
peak
frictional unemployment
disposable income
labor force
13. 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.
GDP gap
GDP (Gross Domestic Product)
frictional unemployment
how to determine GDP
14. Cyclical unemployment is at 0
GDI equation
full employment
Okun's Law
intermediate goods
15. Second-hand sales (goods not produced that year) and financial transactions (moving money from x to y); not counted in GDP
five sources of income
GDP (Gross Domestic Product)
seasonal changes
non-production transactions
16. A sustained rise in the general price level of an economy
inflation
Gross National Product (GNP)
seasonal unemployment
final goods
17. The civilian labor force expressed as a percentage of the labor force population
labor force
participation rate
national income accounting
full employment
18. 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
GDP Price Index
four kinds of spending
structural unemployment
gross investment expenditures
19. All people who are either employed or unemployed - but excludes people who are institutionalized or in the military
four kinds of spending
full employment
civilian labor force
GDI equation
20. GDP = C + Ig + G + Xn
GDP equation (expenditure approach)
four kinds of spending
structural unemployment
government expenditures
21. The total net sales of goods sold abroad minus the total net spent on purchases from other countries
net export expenditures
unemployed
GDI equation
GDP measures the market value of annual output and it is a __________ measure.
22. Cost of living allowance
seasonal unemployment
COLA
deflation
circular flow diagram
23. GDI = w + i + r + pi + misc
GDI equation
deflation
labor force
cost push
24. A person who is available for and looking for work - but has none
unemployed
unemployment rate
gross investment expenditures
personal income
25. Inflation arising from the supply or cost side of the economy
recession
cost push
demand pull
deflation
26. All people living in a society who are of legal age to work
five sources of income
fixed income
Gross National Product (GNP)
labor force
27. 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
trough
recession
cyclical / deficit demand unemployment
Gross National Product (GNP)
28. Those who are on ______ incomes are hurt most by inflation
price index
Okun's Law
non-production transactions
fixed income
29. Government purchase of goods and services; does not include transfer payments and expenditures for servicing the national debt or investment goods
disposable income
GDP Price Index
government expenditures
recession
30. Phase of the business cycle where output and employment are at their lowest levels
full employment
trough
gross investment expenditures
GDI equation
31. Income earned that is available to resource suppliers and others before payment of personal taxes
GDP gap
personal income
largest category of GDI
net export expenditures
32. Shows how money and goods and services flow between the various markets and players in the economy
cyclical / deficit demand unemployment
circular flow diagram
national income
natural employment
33. Consumption - investment - government - and net exports
four kinds of spending
Consumer Price Index (CPI)
labor force
GDP Price Index
34. Measures the prices of a fixed market basket of over 300 consumer goods and services purchased by the typical urban consumer
Consumer Price Index (CPI)
demand pull
seasonal unemployment
five sources of income
35. Recurrent ups and downs of economic activity
circular flow diagram
GDP gap
business cycle
final goods
36. Output sacrificed due to unemployment
GDP equation (expenditure approach)
GDP gap
deflation
GDP (Gross Domestic Product)
37. Excess unemployment caused because the economy deviates from the long run output potential of the economy
cyclical / deficit demand unemployment
GDP measures the market value of annual output and it is a __________ measure.
seasonal changes
frictional unemployment
38. Personal income less income taxes
nominal income
expenditure approach
cyclical / deficit demand unemployment
disposable income
39. Allows us to keep tabs on the economic health of society and to develop policies that will improve that health
three kinds of Ig expenditures
Consumer Price Index (CPI)
national income accounting
labor force
40. 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
Gross National Product (GNP)
income approach
price index
national income
41. Frictional + structural unemployment
circular flow diagram
GDP Price Index
largest category of GDI
natural employment
42. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories
personal income
COLA
three kinds of Ig expenditures
unemployment rate
43. Measures national income as the sum of the incomes received by productive resources in the economy; also called Gross Domestic Income (GDI)
seasonal unemployment
gross investment expenditures
income approach
unemployment rate
44. 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
expenditure approach
Gross National Product (GNP)
non-production transactions
GDP measures the market value of annual output and it is a __________ measure.
45. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions
intermediate goods
income approach
seasonal unemployment
civilian labor force
46. Those that are used to produce other goods that will eventually be sold (miller sells flour to a baker); not counted in GDP
national income
five sources of income
Gross National Product (GNP)
intermediate goods
47. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance
expansion / recovery
largest category of GDI
demand pull
final goods
48. A basic accounting measure of total production of goods and services of the national economy in one year
GDP (Gross Domestic Product)
national income accounting
price index
net export expenditures
49. (base year basket valued at current year prices/base year basket valued at base year prices) x 100
four kinds of spending
CPI equation
five sources of income
consumption expenditures
50. The average of all prices is falling
deflation
Okun's Law
unemployment rate
business cycle