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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. 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






2. Frictional + structural unemployment






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






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






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






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






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






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






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






10. Consumption - investment - government - and net exports






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






12. Temporary and associated with turnover in the labor market






13. 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






14. Personal income less income taxes






15. The sale of goods and services to households






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






17. 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






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






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






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


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






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






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






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






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






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






27. GDP = C + Ig + G + Xn






28. Inflation caused by excess demand in the economy






29. 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






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






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






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






33. Cost of living allowance






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






35. Monetary






36. The average of all prices is falling






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






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






39. Maximum output of business cycle






40. Output sacrificed due to unemployment






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






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






43. Recurrent ups and downs of economic activity






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






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






46. Periodic and predictable economic changes






47. 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)






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






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






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