Welcome to your GRADE 12 ECONOMICS MODEL EXAMINATIONS 2017
CHOOSE ONLY THE CORRECT ANSWER
1.
Which of the following is defines marginal utility?
2.
Which one of the following is best expresses the law of diminishing marginal utility?
3.
Which one of the following is incorrect statement about characteristics of indifference curve?
4.
All are assumptions of ordinal utility theory except one .
5.
Consider two goods, X and Y. If the consumer is indifferent between consuming bundles of (10X, 5Y) and (5X, 10Y) then, what kind of relationship exists between the goods?
6.
The locus of combinations or bundle of goods that can be purchased if all the income spent is -------
7.
When a consumer is below his budget line rather than on it, this implies that the consumer
8.
If the consumer’s income is Birr 900 and the price of X is Birr 8 per unit and the price of Y is Birr 16 per unit then, Calculate the slope of budget line.
9.
Given two commodities X and Y and level of income M, if price of good X decreases (money income and price of Y remaining the same), which of the following is true?
10.
At equilibrium, the slope of highest attainable Indifference curve is :
11.
The main criteria to classify or distinguish markets are
12.
Based on the numbers of firm in the market which one indicates correctly chronological order from largest to smallest.
13.
Perfect competition is characterized by all of the following EXCEPT
14.
All of the following are true about the long-run equilibrium of perfectly competitive firms EXCEPT one.
15.
Perfectly competitive firm has a marginal cost function of MC = 2Q + 20 and the equilibrium price is Birr 100. Find the profit maximizing level of output.
16.
Which one of the following is NOT true about reasons for the existence of monopolies?
17.
What is the difference between first degree and Second degree price discrimination in monopoly market?
18.
Which market structure differentiated product ?
19.
What is the difference between perfect competition and monopolistic competition?
20.
Which one of the following are not the features of oligopoly firm?
21.
If a firm sells its output on a market that is characterized by few sellers and many buyers and limited long-run resource mobility, then the firm is
22.
Which one are not the reasons of National income accounting practice is good for an economy?
23.
Which one of the following is best describe national income accounting?
24.
Which one of the following statement is false EXCEPT.
25.
Which one of the following statement correctly represent GNP.
26.
Which one of the following statement is false about product approach of measuring GDP except.
27.
Which statement is correct about trade balance?
28.
Which one of the following is NOT common problem of measuring GDP?
29.
Which statement is false about nominal and real GDP?
30.
The measure of price typical basket of goods bought by firm.
31.
Which one of the following statement is true about price index?
32.
If consumer has 3000ETB and makes consumption expenditure of 2000ETB, the APC of a household is:
33.
Which one of the following statement is true?
34.
An increase in consumer confidence is MOST likely to lead to:
35.
Which of the following best describes the concept of marginal propensity to consume (MPC)?
36.
If the marginal propensity to save (MPS) is 0.2, what is the marginal propensity to consume (MPC)?
37.
What is the primary purpose of investment in economics?
38.
Which of the following is NOT typically considered a component of business investment?
39.
What does the term "present value" refer to in the context of investment?
40.
Suppose BEKELE has a monthly income of $3,000 and he want to save 15% of it. What is the amount he allocate to save in each month?
41.
What would be the consequence of a country consistently having a trade deficit?
42.
Which of the following is a key measure of national income?
43.
The expenditure approach to calculating GDP includes which of the following components?
44.
Which approach to measuring GDP is most likely to be affected by changes in inventory levels?
45.
An economy experiences a decline in business investment and an increase in consumer spending. What would likely be the impact on the different approaches to calculating GDP?
47.
What is a potential limitation of using the income approach to measure GDP?
48.
Which of the following is a potential weakness of the expenditure approach to measuring GDP?
49.
Why are firms in an oligopoly considered "mutually interdependent"?
50.
How does product differentiation affect firms in an oligopoly?
51.
Which one of the following is false in perfectly competitive market?
52.
What is a "kinked demand curve" used to describe in oligopoly theory?
53.
How might the presence of an oligopoly affect consumer choice compared to a perfectly competitive market?
54.
In evaluating an oligopolistic market, which of the following is the most relevant factor to analyze?
55.
Which one of the following is not the objective of macroeconomics analyzing?
56.
Which one of the following is correct?
57.
Consumers Price Index in 2001 E. C is 140, and in 2002 is 120, then, what is the inflation rate from 2000 to 2002?
58.
What is the minimum amount of remuneration that an employer is required to pay to wage earners for the work that is performed during a given period?
59.
What are the types of inflation, if the inflation rate is 3% to 10%?
60.
Which one of the following refers to the recurrent ups and downs in the level of economic activity?
61.
Which one of the following is not true about the GDP?
62.
In a country A, the price index was 100 in 2003, 125 in 2004 and 150 in 2005 .What was the changes to inflation in the country in 2005?
63.
The phase of business cycle during which business confidence in the economy is at its lowest is known as:
64.
Labour force consists of all those:
65.
Suppose the government of Ethiopia decided to build a new school. Which category of Expenditure budget will the money be spent?
66.
The Government body responsible for the implementation of monetary policy is
67.
Macroeconomic policy reforms taken in Ethiopia include
68.
Who is the economist mostly close to associated with monetarist school thought?
69.
Which one of the following is the best description of the inflation?
70.
Under fixed exchange rate policy, what is an increase in the exchange rates due to political and economic decisions of the government?
71.
Which one of the following factors causes an increase of one country GDP?
72.
In the case of inflationary gap:
73.
Aggregate demand is determined by:
74.
To control the situation of deficient demand, what is the government measurement?
75.
What is the role of central bank to control the situation of excess demand?
76.
A reduction in bank interest rate is:
77.
Which one of the following is the components of aggregate demand that includes output, the cost of capital and expectation about the future.
79.
Which one of the following is not true about aggregate demand?
80.
Which one of the following is NOT the determinant of aggregate demand?
81.
The Keynesian aggregate supply curve is:
82.
An increase in aggregate demand :
83.
Suppose that the nominal wages is$ 30 an hours , and the price level as measured by price index is 1.50 .What is the real wages ?
84.
Aggregate demand curve is typically:
85.
Which one of the following is not the components of aggregate demand?
86.
What is the market failure in economics ?
87.
Which one of the following is not the cause of market failure?
88.
Which one of the following is not the example of pure public goods?
89.
A positive externality exists when:
90.
According to A.C. Pigou, which one is not solution assumptions of externality ?
91.
Which one of the following is correct about externalities?
92.
When there is negative externality:
93.
What is a situation in which different agents have a different amount of information about a good, when one party in a transaction is in possession of more information than the other ?
94.
Which types of asymmetric information is situations where one side of the market cannot observe the “type” or quality of the goods on the other side of the market?
95.
What is the goal of consumer’s protection?
96.
Which one of the following arguments that favors of consumer protection, when business must be guided by certain social and ethical norms?
97.
The main objectives of the Consumer Protection Act in Ethiopia are to:
98.
What is the general objectives of macroeconomic policy?
99.
Which economic thought believed that an automatic mechanism works to restore stability in the economy recession would cure itself and inflation will be automatically controlled?
100.
Which one of the following is excluded under the government spending?
101.
Which types of tax the government imposes on export and import goods?
102.
What do you think would be the sign of the net exports (NX) of Ethiopia?
103.
The total market value of all final goods and services which are produced annually by resources of a country irrespective of the location of these resource.
104.
Which one of the following is NOT parts of consumption expenditure?
105.
When there is a single owner, these types of business form is:
106.
Product differentiation is a typical feature of:
107.
Which one of the following is not method of measuring GDP?
108.
What is the types of unemployment exists due to technological change?
109.
Which one of the following factors shifts the aggregate demand curve to the right?
110.
Which one of the following is mostly likely to cause decreasing aggregate demand?
111.
The increase in spending that occurs because of the increases the real value of money, when the price level falls is called
112.
Which one of the following is NOT the determinant of aggregate demand?
113.
Which one of the following is the element of fiscal policy?
114.
Which one of the following is not tool of fiscal policy ?
115.
The primary goal of central bank is to:
116.
Which one of the following is not tool of monetary policy?
