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


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






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






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






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






6. Temporary and associated with turnover in the labor market






7. 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






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






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






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






11. Cyclical unemployment is at 0






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






13. GDP = C + Ig + G + Xn






14. Output sacrificed due to unemployment






15. Cost of living allowance






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






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






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






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






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






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






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






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






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






25. Periodic and predictable economic changes






26. The average of all prices is falling






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






28. Consumption - investment - government - and net exports






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






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






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






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






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






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






35. Inflation caused by excess demand in the economy






36. 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






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






38. Recurrent ups and downs of economic activity






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






40. Monetary






41. 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






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






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






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






45. Maximum output of business cycle






46. All investment spending by government and business firms






47. Personal income less income taxes






48. 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






49. The sale of goods and services to households






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