Economic inequality is the disproportionate distribution of total national income among households. Which one of the following is correct about the alternative measurements of income inequality?

Kuznets ratio is a measure of the degree of inequality between high income and low-income groups in the country.

The Gini-coefficient value equals to zero implies perfect inequality.

The higher is the value of Gini coefficient, the lower the inequality.

In the Lorenz curve if income distribution were perfectly unequal, it would be represented by the 45-degree line.

Which one of the following is correct about the situation of global and regional poverty?

Extreme poverty remains wide spread in developing world in past decades.

There are clear indications that the conditions of global poverty has worsened over the past half century.

Sub-Saharan Africa showed a remarkable achievement in eradicating poverty from 1950 to 2000.

China has experienced virtually no rate of poverty reduction in the past decades.

Which one of the following is the main reason why women face poverty?

They have less access to education, formal sector employment and social security.

They are more likely to obtain formal employment in private companies.

They have unlimited control over household income and resources.

They have equal access to the resources that are necessary to create stable income.

Which one of the following is the objective of the third five-year plan (1968-1973) during the Imperial Period?

Raising manufacturing and agro-industrial performance and expansion of educational opportunities

Developing strong infrastructure particularly in transportation and communication

Accelerating agriculture development by promoting commercial agriculture

Diversifying of production and introduction of modern processing methods

The 1974 revolution by Derg resulted in the establishment of a socialist state which aimed at the nationalization and restricting of the Ethiopian economy. The regime changed the previous national development strategy placing the major emphasis on a centrally planned economy. Which one of the follow

The commercial farms were put under government control, and land tenancy was abolished.

The agriculture-led development was deployed as the main development strategy.

The rural land and other productive assets were privatized, and land was distributed among farmers.

Rural lands are transferred to large manufacturers due shift to industry-led development policy.

Gobezoch › Past exams › Economics

Grade 12 Economics national exam, 2018 E.C. (2026 G.C.)

77 questions · 120 minutes. The first 5 answers are shown with explanations; sit the whole paper timed in the app to get your score and the textbook page behind every question.

Sit this paper (timed)Practice mode

1.Economic inequality is the disproportionate distribution of total national income among households. Which one of the following is correct about the alternative measurements of income inequality?
- A. Kuznets ratio is a measure of the degree of inequality between high income and low-income groups in the country.
- B. The Gini-coefficient value equals to zero implies perfect inequality.
- C. The higher is the value of Gini coefficient, the lower the inequality.
- D. In the Lorenz curve if income distribution were perfectly unequal, it would be represented by the 45-degree line.
Answer: A. The question tests how income inequality can be measured. The Kuznets ratio compares the income share of high-income groups with that of low-income groups. A Gini coefficient of zero means perfect equality, not inequality; a higher Gini means greater inequality; the 45-degree Lorenz line represents perfect equality, not perfect inequality. Textbook: Grade 12, unit 6 · section 6.2.
2.Which one of the following is correct about the situation of global and regional poverty?
- A. There are clear indications that the conditions of global poverty has worsened over the past half century.
- B. Extreme poverty remains wide spread in developing world in past decades.
- C. Sub-Saharan Africa showed a remarkable achievement in eradicating poverty from 1950 to 2000.
- D. China has experienced virtually no rate of poverty reduction in the past decades.
Answer: B. Extreme poverty remained widespread in the developing world in recent decades. This is the accurate statement about global and regional poverty. A wrongly says global poverty clearly worsened; C wrongly claims remarkable poverty eradication in Sub-Saharan Africa; D wrongly says China made virtually no progress in reducing poverty. Textbook: Grade 12, unit 6 · section 6.3.
3.Which one of the following is the main reason why women face poverty?
- A. They have less access to education, formal sector employment and social security.
- B. They are more likely to obtain formal employment in private companies.
- C. They have unlimited control over household income and resources.
- D. They have equal access to the resources that are necessary to create stable income.
Answer: A. The key idea is how unequal access to opportunities can make women more likely to face poverty. Women may have less access to education, formal-sector jobs and social security, which limits income and protection. B is wrong because greater access to formal jobs would not explain greater poverty. C is wrong because women do not have unlimited control over household resources. D is wrong because equal access to resources would not explain this disadvantage. Textbook: Grade 12, unit 6 · section 6.4.
4.Which one of the following is the objective of the third five-year plan (1968-1973) during the Imperial Period?
- A. Developing strong infrastructure particularly in transportation and communication
- B. Accelerating agriculture development by promoting commercial agriculture
- C. Diversifying of production and introduction of modern processing methods
- D. Raising manufacturing and agro-industrial performance and expansion of educational opportunities
Answer: D. This question tests which main objective was set for the third five-year plan. The plan aimed to accelerate agricultural development by promoting commercial agriculture, so B fits. A describes transport and communication infrastructure, while C describes diversifying production and using modern processing methods. D describes manufacturing, agro-industry and education, rather than the objective asked for here. Textbook: Grade 12, unit 7 · section 7.1.1.
5.The 1974 revolution by Derg resulted in the establishment of a socialist state which aimed at the nationalization and restricting of the Ethiopian economy. The regime changed the previous national development strategy placing the major emphasis on a centrally planned economy. Which one of the following is correct about the major changes?
- A. The agriculture-led development was deployed as the main development strategy.
- B. The rural land and other productive assets were privatized, and land was distributed among farmers.
- C. The commercial farms were put under government control, and land tenancy was abolished.
- D. Rural lands are transferred to large manufacturers due shift to industry-led development policy.
Answer: C. The question tests changes made under the Derg’s centrally planned socialist economy. Commercial farms came under government control, and land tenancy was abolished, as stated in C. A does not describe the change asked about; B is wrong because productive assets were not privatized; D wrongly says rural land was transferred to large manufacturers. Textbook: Grade 11, unit 7 · section 7.2.
6.To measure the general price level of an economy policy makers, use the GDP deflator, Consumer's Price Index (CPI) and Producer Price Index (PPI). Which one of the following is correct about these measures?
- A. The ratio of Nominal GDP to real GDP is equivalent to CPI.
- B. The ratio of Real GDP to GDP deflator is equivalent to Nominal GDP.
- C. The ratio of Nominal GDP to real GDP is equivalent to PPI.
- D. The ratio of Nominal GDP to real GDP is equivalent to GDP deflator.
Answer, explanation and textbook page: open in the app.
7.Which one of the following is correct about the role of investment on economic growth?
- A. It boosts economic growth by increasing consumption expenditure.
- B. It leads to lower economic growth by reducing saving.
- C. It leads to higher economic growth by increasing capital stock.
- D. It limits economic growth by postponing gains in to longer period.
Answer, explanation and textbook page: open in the app.
8.Which one of the following statements is correct about the relationship between consumption and saving?
- A. When income is more than consumption there is a positive saving.
- B. When income equals to consumption there is a positive saving.
- C. When income is more than consumption there is a dissaving.
- D. When income is less than consumption there is a positive saving.
Answer, explanation and textbook page: open in the app.
9.Which one of the following correctly defines investment?
- A. It is the amount of goods purchased for current consumption.
- B. It involves reducing saving for purchasing consumer goods.
- C. It is the amount of goods purchased and not consumed in present time.
- D. It involves increasing consumption by selling fixed assets.
Answer, explanation and textbook page: open in the app.
10.Which one of the following best describes the ability of one country to produce one of the two goods at the lower cost relative to its trading partner?
- A. Absolute cost Advantage
- B. Principle of comparative advantage
- C. Absolute cost disadvantage
- D. Principle of comparative costs
Answer, explanation and textbook page: open in the app.
11.Which one of the following is the focus area of macroeconomics?
- A. What factors determine the productivity of manufacturing firms?
- B. How does the increase in selling price affect profitability of firms?
- C. What is the cause of inflation and how it can be determined?
- D. Why do outputs and employment of manufacturing firms fail?
Answer, explanation and textbook page: open in the app.
12.Which one of the following correctly explains the concept of aggregate demand?
- A. The total amount of goods produced in an economy at a given period.
- B. The total spending by different sectors of the economy at a given period.
- C. The sum of individuals demands for a given product with in a year.
- D. The total amount of spending by an individual with in a year.
Answer, explanation and textbook page: open in the app.
13.What explains the upward slope of the aggregate supply curve?
- A. Sticky wages
- B. Wage-inflation spiral
- C. Limited labor supply
- D. Sticky prices
Answer, explanation and textbook page: open in the app.
14.Which one of the following is correct about the short-run market equilibrium?
- A. At equilibrium the aggregate demand is greater than the aggregate supply.
- B. At equilibrium the aggregate demand is equals to the aggregate supply.
- C. At equilibrium the aggregate demand is less than the aggregate supply.
- D. At equilibrium the aggregate demand and aggregate supply equals to zero.
Answer, explanation and textbook page: open in the app.
15.Suppose an open economy interacting with the rest of the world through trade and investment. Which one of the following is a desirable outcome for this economy?
- A. A decrease in overall price level of good and services over a certain period
- B. An increase in the value of import more than the value of export
- C. A decrease in the level of output with in an economy over a given time period
- D. An increase in unemployment with in an economy over a given period of time
Answer, explanation and textbook page: open in the app.
16.Which one of the following is correct about economic growth?
- A. Short run growth occurs when there is a sustained increase in per capita income.
- B. Structural change is characterized by a decrease in share of industry in GDP.
- C. Long-run economic growth is associated with structural change in the economy.
- D. Structural change is characterized by an increase in share of agriculture in GDP.
Answer, explanation and textbook page: open in the app.
17.Among the followings, which one is NOT the possible reason behind why some countries are rich while the others are poor?
- A. Difference in nature of institutions
- B. Difference in natural resources endowment
- C. Difference in productivity of factor inputs
- D. Difference in location of the country
Answer, explanation and textbook page: open in the app.
18.Which one of the following is categorized under consumption expenditure on goods?
- A. Expenditure by households on medical care
- B. Households' expenditure on appliances
- C. Expenditure by households on education
- D. Households' expenditure on haircuts
Answer, explanation and textbook page: open in the app.
19.Total spending in the economy rises from one year to the next due to either the economy is producing a larger output or outputs are being sold at higher prices. To measure these effects, economists use real GDP and Nominal GDP. Which one of the following is correct about the two measures?
- A. Change in real GDP reflects only changes in the amounts being produced.
- B. Nominal GDP values the economy's production of goods and services at a constant base year price.
- C. Change in nominal GDP reflects only changes in the amounts being produced.
- D. Real GDP values the economy's production of goods and services at current price.
Answer, explanation and textbook page: open in the app.
20.Which one of the following statements is correct about product differentiation?
- A. It is the characteristic of firms operating under perfectly competitive market structure.
- B. It shows that fancied differentiation occurs when there are differences in input use.
- C. It shows that real differentiation occurs when there are differences in product specification.
- D. It is one way that firms operating in a pure monopoly market can acquire market power.
Answer, explanation and textbook page: open in the app.
21.Which one of the following statements is correct about collusive oligopoly?
- A. There are few dominant sellers selling only differentiated product.
- B. Cartel and price leadership are two alternative forms of competition.
- C. In a collusive oligopoly firms determine the price of their product independently.
- D. In collusive oligopoly firms can set up a monopoly price on their product.
Answer, explanation and textbook page: open in the app.
22.Which one of the following GDP measurement approaches captures government purchase and net export as its component?
- A. The income approach
- B. The expenditure approach
- C. The value-added approach
- D. The product approach
Answer, explanation and textbook page: open in the app.
23.Suppose the planning expert wants to measure the GDP of the country using alternative approaches by including all the necessary components in each approach. Which one of the following statements is correct about the components of approaches?
- A. In expenditure approach, we add the returns of factors of production to measure GDP.
- B. The income approach of GDP accounting represents the demand for final goods and services.
- C. In the product approach GDP is estimated by calculating the value added at each stage of production.
- D. Rent and profit payments are components of the value-added approach of measuring GDP.
Answer, explanation and textbook page: open in the app.
24.Which one of the following is correct about nominal GDP and real GDP?
- A. Nominal GDP values goods and services at current price.
- B. Nominal GDP is GDP adjusted for price changes.
- C. Real GDP values goods and services at current price.
- D. Nominal is GDP computed using a base year price.
Answer, explanation and textbook page: open in the app.
25.Which one of the following is among the key strategic pillars of the ten-year development plan in the home- grown economic reform period?
- A. Strengthen human resource development
- B. Quality economic growth and shared prosperity
- C. A massive push to accelerate economic growth
- D. Managing risk and volatility
Answer, explanation and textbook page: open in the app.
26.Which one of the following is correct about the vulnerability and impact of climate change?
- A. The poor and marginalized people are the least exposed to adverse impact of climate change.
- B. Africa and South Asia are identified as the two most vulnerable regions to climate change.
- C. The developed countries will be hit the earliest and hardest by climate change.
- D. Developed countries have contributed little to causing the problem.
Answer, explanation and textbook page: open in the app.
27.For developing countries like Ethiopia, climate change complicates the existing challenges of poverty reduction. To minimize its effect, if Ethiopia follows tax on carbon and subsidies to encourage faster technological progress, which one of the following terms best reflects the country's strategy?
- A. Mitigation of climate change
- B. Adaptation to climate change
- C. Coping with climate change
- D. Vulnerability to climate change
Answer, explanation and textbook page: open in the app.
28.Which one of the following terms explains an economy characterized by low carbon usage, resource efficiency and socially inclusive?
- A. Green economy
- B. Green growth
- C. Developed economy
- D. Developing economy
Answer, explanation and textbook page: open in the app.
29.Ethiopia is cited as one of the most vulnerable countries to future climate change. Accordingly, the country has been implementing an environment and climate change strategy which envisaged carbon-neutral growth based on an energy efficient development trajectory. Which one is it?
- A. National Adoption Programme of Action
- B. Nationally Appropriate Mitigation Actions
- C. Climate Resilient Green Economy Strategy
- D. Green Industrialization Strategy
Answer, explanation and textbook page: open in the app.
30.Which one of the following is the extra or additional total cost that results from producing one more unit of output?
- A. Average Variable Cost
- B. Average Total Cost
- C. Marginal Cost
- D. Average Fixed Cost
Answer, explanation and textbook page: open in the app.
31.Among the following statements, which one is a character of pure monopoly market structure?
- A. A single buyer and many sellers
- B. Many buyers and many sellers
- C. Few sellers and many buyers
- D. Single seller and many buyers
Answer, explanation and textbook page: open in the app.
32.The beverage industry is composed of many firms producing and supplying differentiated products. What kind of market structure does the beverage industry resembles?
- A. Perfectly Competitive
- B. Oligopoly
- C. Monopolistically competitive
- D. Monopoly
Answer, explanation and textbook page: open in the app.
33.Which one of the following is the major role of non-banking financial institutions?
- A. Mobilizing savings from depositors
- B. Facilitating bank-related financial services
- C. Providing loan to borrowers
- D. Serving as intermediary between borrowers and lenders
Answer, explanation and textbook page: open in the app.
34.Which one of the following is correct about the roles and functions of microfinance institutions?
- A. Controlling the creation of credit by commercial banks
- B. Selling and purchasing foreign currencies and issue letter of credit
- C. Providing large loans for development of agriculture and industry
- D. Providing credit without a collateral through group lending
Answer, explanation and textbook page: open in the app.
35.Which one of the following principles of taxation states that the tax system should be able to yield enough revenue so that it should not be forced to resort to deficit financing?
- A. Principle of fiscal adequacy
- B. Principle of economy
- C. Principle of maximum revenue
- D. Principle of tax equity
Answer, explanation and textbook page: open in the app.
36.Which one of the following is the objective of tax imposition by the government?
- A. Increasing income and wealth inequalities
- B. Encouraging the consumption of harmful products
- C. Encouraging export and minimize unemployment
- D. Increasing regional imbalances
Answer, explanation and textbook page: open in the app.
37.Which type of tax is imposed and payable on luxury items according to the Ethiopian tax policy?
- A. Turnover tax
- B. Surtax
- C. Value added tax
- D. Excise tax
Answer, explanation and textbook page: open in the app.
38.Suppose an Ethiopian importer is importing commodities by taking a full advantage of the deductions or incentives approved in the tax schedule by the government to reduce its tax obligation. Which one of the following terms reflects such kind of a tax non-compliance problem?
- A. Tax avoidance
- B. Tax evasion
- C. Tax reduction
- D. Tax advantage
Answer, explanation and textbook page: open in the app.
39.Which one of the following is a measure of inequality which is often expressed by the ratio of the area between the Lorenz curve and a $45^\circ$ line and the total area under the $45^\circ$ line?
- A. Kuznets ratio
- B. Human Development Index
- C. Per capita income
- D. Gini Coefficient
Answer, explanation and textbook page: open in the app.
40.Which one of the following is correct about the effect of change in income?
- A. Normal goods are goods for which consumption decreases as income increases.
- B. When consumer income increases, ceteris paribus, budget line shifts downward.
- C. Inferior goods are goods of which consumption decreases as income increases.
- D. When consumer income decreases, ceteris paribus, budget line shifts outward.
Answer, explanation and textbook page: open in the app.
41.Given two goods X and Y, and income of the consumer, what happens if the price of X changes, ceteris paribus?
- A. A decrease in price of X will lead to inward rotation of the budget line.
- B. An increase in price of X decreases the maximum amount of good X that the consumer can buy.
- C. An increase in price of X increases the maximum amount of good X that the consumer can buy.
- D. An increase in price of X will lead to outward rotation of the budget line.
Answer, explanation and textbook page: open in the app.
42.Suppose the firm is operating under the market structure characterized by the increase price will reduce its quantity demanded and the decrease in price will result in an increase in quantity demanded. The shape of the demand curve for the firm will be
- A. horizontal.
- B. vertical.
- C. downward sloping.
- D. upward sloping.
Answer, explanation and textbook page: open in the app.
43.Short-run equilibrium of the monopolist is a point where
- A. profits are maximized.
- B. losses are maximized.
- C. profits are minimized.
- D. revenues are minimized.
Answer, explanation and textbook page: open in the app.
44.What differentiates a product group from an industry? A product group is a
- A. collection of firms producing identical commodities.
- B. group of firms supplying to identical consumers.
- C. group of products having the same quality.
- D. collection of firms producing differentiated products.
Answer, explanation and textbook page: open in the app.
45.Which one of the following is correct about the optimum of the consumer under the cardinal utility theory?
- A. The equilibrium is defined by the tangency of the indifference curve and the budget line.
- B. The equilibrium is defined by equality between the total utility and income of the consumer.
- C. At equilibrium, the marginal utility from the commodity must be equal to the price of the commodity.
- D. At equilibrium, the total utility of the commodity must be equal to the price of the commodity.
Answer, explanation and textbook page: open in the app.
46.Which one of the following is correct about market demand and individual demand for a commodity?
- A. Individual demand is the quantity of the commodity that a person is willing to buy based on his/her preference.
- B. Quantity demanded in the market of the commodity that a person is willing to buy based on his/her preference.
- C. Market demand is the sum of the individual demand of all consumers in the market at that price.
- D. Market demand curve can be derived by taking horizontal summation of individual demand curves.
Answer, explanation and textbook page: open in the app.
47.Excess supply occurs in the market when
- A. quantity supplied exceeds quantity demanded
- B. quantity supplied equals quantity demanded
- C. quantity supplied is less than quantity demanded
- D. quantity demanded exceeds quantity supplied
Answer, explanation and textbook page: open in the app.
48.Which one of the following is correct about capital side technical progress?
- A. It increases the marginal product of Labor more than the marginal product of capital.
- B. It increases the marginal product of capital and the marginal product of labor equally.
- C. It increases the marginal product of capital more than the marginal product of labor.
- D. It increases the marginal product of capital while the marginal product of labor is constant.
Answer, explanation and textbook page: open in the app.
49.Which one of the following is correct about the effect of change in demand and supply on equilibrium price and quantity?
- A. If supply is constant, an increase in demand will lead to decrease in price and increase in quantity.
- B. If demand is constant, an increase in supply will lead to increase in both the equilibrium price and quantity.
- C. If demand is constant, a decrease in supply leads to increase both price and quantity.
- D. If demand is constant, an increase in supply leads to increase in price and decrease in quantity.
Answer, explanation and textbook page: open in the app.
50.Which one of the following is the objective of income policies?
- A. It can be used as substitute when expansionary fiscal and monetary policies fail
- B. It can be used to reduce the price level.
- C. It can be used as substitute when expansionary monetary policy fails
- D. It can be used to increase money supply during inflation.
Answer, explanation and textbook page: open in the app.
51.Which one of the following consumer protection arguments states that it is a moral responsibility of the business to serve the interest of consumers?
- A. Consumer satisfaction
- B. Social responsibility
- C. Principle of trusteeship
- D. Principle of social justice
Answer, explanation and textbook page: open in the app.
52.Which one of the following is correct about the pricing policy?
- A. A price ceiling keeps a price from falling below a particular level.
- B. A price ceiling provides unintended incentives causing a surplus in the market.
- C. A price floor must be higher than the equilibrium price in order to be effective.
- D. A price floor is a maximum legal price below the equilibrium price.
Answer, explanation and textbook page: open in the app.
53.Which one of the following is correct about the major challenges of the agricultural sector in the Ethiopian economy?
- A. Increasing availability of marketing facilities
- B. Increasing adaption of modern agricultural practices
- C. Increasing prices of agricultural outputs
- D. Increasing prices of agricultural inputs
Answer, explanation and textbook page: open in the app.
54.Which one of the following is correct about the contribution of the service sector in the Ethiopian Economy over the last two decades?
- A. Its employment contribution is largest next to the industrial sector.
- B. Its large contribution to the GDP comes from government employment.
- C. Its contribution to foreign exchange earning has been decreasing overtime.
- D. Its achievements have been mainly reflected in areas of wholesale trade.
Answer, explanation and textbook page: open in the app.
55.Gemechu owns a sole proprietorship type of business and incurred a loss. Which one of the following could result in the sale of his private house if his business assets are not enough to cover the business liabilities?
- A. Unlimited liability
- B. Non-transferability of shares
- C. Not suitable for large scale operations
- D. Limited managerial expertise
Answer, explanation and textbook page: open in the app.
56.Which one of the following statements is correct about the budget line?
- A. It shows the optimal combination of two goods that the consumer can buy when his or her income changes.
- B. It shows the various combinations of two commodities which give equal satisfaction to the consumer.
- C. It shows different combinations of two goods that a consumer can buy with a given income at a given price.
- D. It shows the locus of points representing various combinations of the two commodities purchased by the consumer.
Answer, explanation and textbook page: open in the app.
57.Which one of the following factors causes upward shift of the budget line?
- A. Increase in both income of the consumer and prices of commodities
- B. Increase in income keeping the price of commodities unchanged
- C. Decrease in income keeping the price of commodities unchanged
- D. Decrease in both income of the consumer and price of commodities
Answer, explanation and textbook page: open in the app.
58.For a constant aggregate demand, if the shock in the economy shifts the aggregate supply curve to the left, what would be the possible cause?
- A. Improvement in production technology
- B. An increase in money supply, given the price level
- C. Increase in the amount of capital and labor
- D. An increase in price of factors of production
Answer, explanation and textbook page: open in the app.
59.Which one of the following is the major feature of pure public goods?
- A. Rivalry in consumption and excludability
- B. Non rivalry in consumption and non-excludability
- C. Non rivalry in consumption and excludability
- D. Rivalry in consumption and non-excludability
Answer, explanation and textbook page: open in the app.
60.Which one of the following is correct about the difference between pure private good and pure public goods?
- A. In pure private goods additional cost incurred by the additional person is zero.
- B. In pure public goods additional cost incurred by the additional person is positive.
- C. In pure private goods the benefits of using the good cannot be priced.
- D. In pure public goods the benefits of using the good cannot be priced.
Answer, explanation and textbook page: open in the app.
61.Which one of the following is correct about the characteristics of externality?
- A. Externalities are reciprocal in nature
- B. Externalities can only be generated by consumers
- C. Externalities are rival and non-excludable
- D. Externalities are the result of one person's action
Answer, explanation and textbook page: open in the app.
62.Suppose in a car market transaction, sellers take advantage of buyers because the sellers have better information about the dynamic of product quality and market price change of cars than the buyers. Which one of the following is the implication of such kind of asymmetric information?
- A. It results in efficient market equilibrium for involving parties.
- B. It guarantees the same decision for the involving parties.
- C. It creates an imbalance in power in transactions to involving parties.
- D. It helps all involving parties to have equal information about the good.
Answer, explanation and textbook page: open in the app.
63.Among the following statements, which one is correct about the limitation of Human Development Index (HDI)?
- A. It assigns weights to certain factors that have equal trade-offs.
- B. It correlates factors that are more common in developing economies.
- C. It takes into account factors such as inequality and poverty.
- D. The values of the factors that make up the HDI are limited between 0 and 2.
Answer, explanation and textbook page: open in the app.
64.In which one of the following Millenium Development Goal (MDG) that Ethiopia made significant progress?
- A. Eradicating extreme poverty and hunger
- B. Ensuring environmental sustainability
- C. Improving maternal health
- D. Developing a global partnership for development
Answer, explanation and textbook page: open in the app.
65.Which one of the following is correct about the relationship between the Millennium Development Goals and the Sustainable Development Goals?
- A. Millennium development goals are less ambitious and narrow compared to sustainable development goals.
- B. Millennium development goals include affordable and clean energy as a goal which are not included in sustainable development goals.
- C. Millennium development goals exclude poverty reduction as a goal which are included in sustainable development goals.
- D. Sustainable development goals are more universal in coverage compared to millennium development goals.
Answer, explanation and textbook page: open in the app.
66.Which one of the following is separately categorized under the Sustainable Development Goals?
- A. Reduce child mortality
- B. Responsible consumption and production
- C. Combat HIV/AIDS, malaria and other diseases
- D. Achieve universal primary education
Answer, explanation and textbook page: open in the app.
67.Which one of the following is advantage of bi-modal agricultural strategy?
- A. It protects peasants from eviction.
- B. It reduces poverty in the rural economy.
- C. It reduces outgoing migration from rural areas.
- D. It promotes large-scale diversification.
Answer, explanation and textbook page: open in the app.
68.Which one of the following is correct about the Mercantilists' view on trade?
- A. To promote a favorable trade balance, they advocate trade liberalization.
- B. To minimize imports, they advocate imposition of tariff and quota.
- C. To generate more revenue for importing nation imports were considered good.
- D. To prevent the country's holdings of gold being depleted increasing imports is important.
Answer, explanation and textbook page: open in the app.
69.Assume that the total value of export of goods and services of Country "X" in the year 2020 was less than the total value of imported goods. Which one of the following statements is correct about the status of this country?
- A. There is trade surplus
- B. There is trade balance
- C. There is capital account deficit
- D. There is trade deficit
Answer, explanation and textbook page: open in the app.
70.Which of the following is correct about the effect of devaluation of local currency on the economy?
- A. It is expected to equally encourage export and imports.
- B. With devaluation, imports become expensive while exports become cheap.
- C. It is expected to encourage imports and discourage exports.
- D. With devaluation, import becomes cheaper while exports become expensive.
Answer, explanation and textbook page: open in the app.
71.Which one of the following explains the basic difference between economic growth and development?
- A. While a country may grow richer through the growth of its real output it does not necessarily mean that it will develop.
- B. Economic growth is a process where there is improvement in the lives of all people in the country.
- C. Economic development is determined by the percentage increase of the GDP from one time period to other.
- D. GDP per capita measures the effect of economic development on living standard of the population.
Answer, explanation and textbook page: open in the app.
72.Which one of the following indicators is component of Human Development Index?
- A. Multidimensional Poverty Index
- B. Gender Empowerment Measure
- C. Gender Inequality Index
- D. Educational Attainment Index
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73.If the Real GDP of country "A" in the year 2023 is 19,550,000 dollar and in the year 2022 it was 18,600,000 dollar, then the real GDP growth in 2023 as compared to the previous year will be equal to
- A. 5.11%
- B. 3.39%
- C. 6.55%
- D. 4.86%
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74.Given the following short run total production function (TP) where Labor(L) is the only variable input used in the production process: $TP=L^3-3L$, if the firm want to increase the amount of labor(L) used from 4 to 5, then which one of the following is the Marginal Product (MP) of extra unit of labor?
- A. 80
- B. 52
- C. 58
- D. 32
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75.Given the budget equation as: $2X+3Y=60$ where Price of commodity X ($P_x=2$), Price of commodity Y ($P_y=3$), and income of the consumer ($M=60$), then which one of the following is slope of the budget line?
- A. $\frac{3}{2}$
- B. $-\frac{3}{2}$
- C. $\frac{1}{3}$
- D. $-\frac{2}{3}$
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76.Given the following numerical values of marginal and total utility derived from consumption of orange in the table below. Quantity Consumed(Q) | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 Total Utility (TU) | 0 | 13 | 24 | ? | 37 | 38 | 38 | 37 | 34 | 30 Marginal Utility (MU) | - | 13 | 11 | 7 | 6 | 1 | 0 | -1 | -3 | -4 Depending on the information provided in the table, what is the total utility of the 3 rd unit of orange?
- A. 36
- B. 31
- C. 30
- D. 37
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77.In a hypothetical country, (K) the number of employed labor is 25 million and the number of unemployed labors is 5 million. Moreover, the total adult population of the country is given as 80 million. How much is the labor force participation rate?
- A. 25.1
- B. 25%
- C. 31.3%
- D. 37.5%
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Other Economics years: 2017 2016 2012 2011