Aleta Hidase Secondary High School Second Semester

Economics Final Exam For Grade 11

(Sene 2016 E.C/Jun 2024) (Total Marks=40.%)

(Time allowed=1:20')

Part 1; write "TRUE" Statement is Correct and write "FALSE"Statement is incorrect.

1. The difference between the receipt and payment of such transfer is Net transfer.
2. The higher price of imported goods are expected to increase the demand in the domestic
market.
3. The contribution of the industrial sector to the GDP of Ethiopia a greater than that of the
agricultural sector.
4. Trade balance shows that the balance in the trading of merchandise goods by including trade
in service.
5. Trade restrictions are imposed on domestic trade, particularly on export.
6. When import value are more than export value, the country said to have a trade surplus.
7. The debit items which lead to a payment of inflow are recorded with a plus sign.
8. An increase in the value of currency in terms of foreign currency is called appreciation.
9. Productivity is commonly defined as the ratio between the input volume and the volume of out
puts.
10. Purchasing goods from a foreign country is import goods.

Part:2.Choose the correct answer from the given alternatives .

1. Whose theories believed that country wealth is based on the holdings of precious metals?

A. David Ricardo B. Adam Smith C. John mill D. Mercantilists

2. Which sector is the most dominant in Ethiopian economy in terms of absorbing of more employment
opportunity?

A. Hotel sector. B. Service sector C. Industrial sector D. Agricultural sector

3. Which famous economists developed the principle of comparative advantage?

A. Adam Smith B. Fried man. C. David Ricardo D. John Maynard

4. The current account of the Ethiopian balance of payment does not include?

A. Investment income. B. Export and import goods and services

 C. Sale of securities to foreigner. D. Unilateral transfer

5. Who is educated at Glasgow University?

A. David Ricardo. B. Adam Smith. C. James mill D. Jean Colbert

6. Banking and Insurance sectors include at:

A. Industrial sector. B. Service sector. C. Agricultural sector. D. All

7. All are the characteristics of uni modal agricultural strategy Except one?

A. It enhance commercial farming. B. It is pro poor growth strategy

C. It focus on the production of food security

D. Development & diffusion highly divisible innovation the small size holding

8. Comparative advantage is:

A. the ability to produce a goods at a lower opportunities cost relative to another country

B. the value of the next best opportunity

C. the ability to produce a goods at lower cost or with higher productive

D. All are answer

9. When its balance of trade is deficit?

A. When export greater than import. B. When export less than import

C.When export equal to import. D. When import less than export

10. Which one is the predominant farming system in Ethiopia?

A. the State farming system. B. the small holder farming system

C. the collective farming system. D.the large scale animal husbandry

11. Productivity can be increased by the following ways Except one.

A. Increasing the input by maintaining the output as constant

B. Increasing the output using the same input

C. Increasing the output to a maximum extent with smaller increase in input

D. Reducing the input by maintaining the output as constant

12. All items are registered as credit Except one.

A. Exports goods. B. Imports goods. C. Receipts of interest

D. Investment inflow to the home country

13. If the dollar price of the Ethiopian birr increase, then:

A. Both Ethiopia birr and USD has appreciated

B. Ethiopian birr and the USD has depreciated

C. Ethiopian birr has appreciated with the USD has depreciated

D. Ethiopian birr has depreciated while the USD has appreciated

14. All are the limitations of bi-modal agricultural strategy Except one.

A. It creates differentiation in the rural society

B. Promote the eviction of small peasant

C. It deprive the majority of rural populations of land

D. It support individual right to acquire land

15. Exchange rate between two currencies is defined as:

A. Ratio of import volume to export volume for a particular country

B. Difference between total export and imports of a country

C. Price at which the sales and purchase of foreign goods take place

D. It the rate at which one unit of a currency is exchanged for another currency

16. Developing nations have:

A. Lower infant mortality rate B.Higher life expectancy. C. Lower rate literacy

D. Greater degree of equality in the economic distribution

17. The Devaluation of a country currency cause the price of imports to:.

A. Rise and prices of exports to rise B. Rise and the price of exports to fall

C. Fall and the price of exports to rise. D. Fall and the price of exports to fall

18. Amartya sen's welfare theory individual ideas relies on:.

 A. Capability. B. Wealth C. Education. D. All

19. A quotas means:. A. Reduce the quantity of imported goods

B. Price related restrictions. C. Rises the price of the imported goods

D. Increase the volume of imported goods

20. Which statement is correct regarding to trade restriction.

A. Tariff restrictions reduces the price of imported goods

B. Tariff restrictions increases the price of imported goods

C. Tariff restrictions decrease domestic production

D. Tariff restrictions decrease the price of domestic goods

21. The current account balance equal to:.

A. Exports minus imports. B. Sum of import and export

C. Sum of trade balance, net service and net transfer

D. Net service minus unilateral transfer

22. When the relative costs for commodity are different between countries as basis for beneficial trade
exists, this situation describe the principle of:.

A. Economic development. B. Economic growth.

C. Comparative advantage. D. Absolute advantage

23. Suppose that, the price of 1 kg of rice is 100 ETB birr in Ethiopia and 5 USD in USA, the nominal
exchange rate is 45 birr. Calculate the real exchange rate?

A. 0.0225. B. 0.225. C. 22.5. D. 2.25

24. All are several advantage of domestic trade Except one.

A. Transaction costs which are associated to be much lower

B. The market due to lack of tariffs and customs duties

C. The market more quickly as they have a Long distance to travel

D. Transportation costs are also much lower

25. If the country impose tariff on imported goods, what happened to imported goods?
 A. Imported goods will be cheaper relative to domestically produced goods

B. Imported goods will be expensive relative to domestically produced goods

C. The price of imported goods will not be affected

D. All are answer

26. The common measure of economic development is:.

A. Per capital GDP. B. The rate of population growth

C. The level of health and education of the population. D. All of the above

27. Exchange rate determination is purely a task of the force of demand and supply is:.

A. Managed floating rate system B. Adjustable rate system

C. Flexible exchange rate system. D. Fixed exchange rate system

28. The real GDP in 2016 is 18206884 dollars and in 2015 it was 17820426 dollars, then calculate the
GDP growth?

A. 5.17 B. 4.17 C. 3.17 D. 2. 17

29. The several reasons for restricting trade including.

A. To maintain the domestic standard of living

B. To protect domestic jobs argument

C. To protect small and infant industries

D. All are answer

30. Which agricultural strategy is advocate the intensification of small peasants and commercial farms?

A. Uni-modal agriculture B. Bi-modal agriculture

C. Small holder agriculture. D. Pastoral agriculture

Prepared by Mess & Sancho.

 ANSWER. SHEET

NAME:__________________________________________________________Sec________No______

Part 1: True/False. Part 2: Choose

1.____________. 1.__________ 11.__________. 21._________

2.____________. 2._________. 12.__________. 22.________

3.____________. 3._________. 13.__________. 23.________

4.____________. 4.__________. 14.___________. 24.________

5.____________. 5.__________. 15.___________. 25._________

6.____________. 6.__________. 16.___________. 26._________

7.____________. 7.___________. 17.____________. 27._________

8.____________. 8.____________. 18.____________. 28._________

9.____________. 9.____________. 19.____________. 29._________

10.___________. 10.___________. 20.___________. 30._________