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






2. 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






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






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






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






6. 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)






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






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






9. Inflation caused by excess demand in the economy






10. All investment spending by government and business firms






11. Periodic and predictable economic changes






12. 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.






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






14. Recurrent ups and downs of economic activity






15. Maximum output of business cycle






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






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






18. Frictional + structural unemployment






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






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






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






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






23. Cyclical unemployment is at 0






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


25. Monetary






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






27. 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






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






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






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






31. Consumption - investment - government - and net exports






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






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






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






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






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






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






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






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






40. 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






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






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






43. 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






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






45. The average of all prices is falling






46. The sale of goods and services to households






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






48. Cost of living allowance






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






50. Personal income less income taxes