Eco Q for G-12 Part -1.pdf Ethiopian curriculum

For Ethiopian

1. GaaffileeEkonomiksii
5/11/2024Prep.By: Tatek T.
1

2. PART –ONE
PREPARED BY: TATEKT.(MA)
APRIL 13, 2024
Grade 12
th
Economics Questions with key
Answers
5/11/2024Prep.By: Tatek T.
2

3. QUESTION
1.Whatisthedifferencebetweenmicroeconomicsand
macroeconomics?
A.Microeconomicsfocusesonindividualdecision-making,
whilemacroeconomicsstudiesoveralleconomic
behavior.
B.Microeconomicsstudiestheoveralleconomy,while
macroeconomicsfocusesonindividualunits.
C.Bothfocusonindividualdecision-making.
D.Bothfocusonoveralleconomicbehavior.
5/11/2024Prep.By: Tatek T.
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4. Answer
A
Microeconomics focuses on individual
decision-making, while macroeconomics
studies overall economic behavior.
5/11/2024Prep.By: Tatek T.
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5. QUESTION
2.What role did John Maynard Keynes' book
"The General Theory of Employment,
Interest and Money" play in the
development of macroeconomics?
A.It emphasized individual decision-making.
B.It introduced concepts like aggregate demand and
government intervention.
C.It focused solely on microeconomic analysis.
D.It had no impact on macroeconomics.
5/11/2024Prep.By: Tatek T.
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6. Answer
B
It introduced concepts like aggregate demand and
government intervention.
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7. QUESTION
3.Which of the following is NOT a focus
area of macroeconomics?
A.Economic growth
B.Employment
C.Microeconomic policies
D.Inflation
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8. Answer
C
Microeconomic policies
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9. QUESTION
5/11/2024Prep.By: Tatek T.
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4.Whatarethecentralmacroeconomic
questionsaddressedbythestudyof
macroeconomics?
A.Howtoincreaseindividualsavings.
B.Whysomefirmsfail.
C.Factorsdeterminingtotaloutputandeconomicgrowth.
D.Howtomaximizeprofitsforasinglefirm.

10. Answer
5/11/2024Prep.By: Tatek T.
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C
Factors determining total output and
economic growth.

11. QUESTION
5/11/2024Prep.By: Tatek T.
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5.WhichofthefollowingisNOTa
macroeconomicgoalmentionedinthenotes?
A.Achievingfullemployment
B.Maximizingprofitsforfirms
C.Ensuringfairdistributionofincome
D.Achievingpricestability

12. Answer
5/11/2024Prep.By: Tatek T.
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B
Maximizing profits for firms

13. QUESTION
5/11/2024Prep.By: Tatek T.
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6.Whichofthefollowingisa
macroeconomicvariable?
A.Thepriceofasingleproduct
B.Individualhouseholdincome
C.GrossDomesticProduct(GDP)
D.Thecostofproductionforasinglefirm

14. Answer
5/11/2024Prep.By: Tatek T.
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C
Gross Domestic Product (GDP)

15. QUESTION
5/11/2024Prep.By: Tatek T.
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7.Howmacroeconomicgoalsarerelatedtothe
focusareasofmacroeconomics?
A.Theyareunrelated.
B.Theyarecontradictory.
C.Theyalignwiththebroaderobjectivesof
macroeconomics.
D.Theyareonlyrelevantinmicroeconomicanalysis.

16. Answer
5/11/2024Prep.By: Tatek T.
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C
They align with the broader objectives of
macroeconomics.

17. QUESTION
5/11/2024Prep.By: Tatek T.
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8.Whyisitimportantforpolicymakersto
understandmacroeconomicvariables?
A.Tomaximizeindividualprofits
B.Toassessthehealthoftheeconomyanddesigneffective
policies
C.Topromoteinternationaltrade
D.Tominimizegovernmentintervention

18. Answer
5/11/2024Prep.By: Tatek T.
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B
To assess the health of the economy and
design effective policies

19. QUESTION
5/11/2024Prep.By: Tatek T.
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9.Whatistherelationshipbetweenthe
domesticeconomyandinternationaltrade
inmacroeconomics?
A.Theyarecompletelyindependent.
B.Thedomesticeconomyhasnoimpactoninternationaltrade.
C.Theyinteractthroughfactorslikeexports,imports,and
exchangerates.
D.Internationaltradeisnotrelevantinmacroeconomicanalysis.

20. Answer
5/11/2024Prep.By: Tatek T.
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C
Theyinteractthroughfactorslikeexports,
imports,andexchangerates.

21. QUESTION
5/11/2024Prep.By: Tatek T.
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10.Howdoesmacroeconomicscontributeto
addressingbroadereconomicproblemsand
findingsolutions?
A.Byfocusingsolelyonindividualdecision-making.
B.Byanalyzingoveralleconomicperformanceand
designingpolicies.
C.Byignoringmacroeconomicvariables.
D.Bymaximizinggovernmentintervention.

22. Answer
5/11/2024Prep.By: Tatek T.
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B
Byanalyzingoveralleconomic
performanceanddesigningpolicies.

23. QUESTION
5/11/2024Prep.By: Tatek T.
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11.Whatistheprimaryconcernofmacroeconomicswhenit
comestomeasuringtheperformanceofaneconomy?
A.Analyzingindividualmarkettrends
B.ForecastingGDPbyanalyzingmajoreconomicfactors
C.Calculatingthetotalvalueofimportsandexports
D.Assessingthestabilityofinterestrates

24. Answer
5/11/2024Prep.By: Tatek T.
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B
Forecasting GDP by analyzing major economic factors

25. QUESTION
5/11/2024Prep.By: Tatek T.
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12.WhichofthefollowingbestdefinesGrossDomesticProduct
(GDP)?
A.Thetotalvalueofgoodsandservicesproduceddomesticallyandinternationally
B.Thetotalmarketvalueofallfinalgoodsandservicesproducedwithinacountry's
bordersinayear
C.Thetotalincomeearnedbyacountry'scitizensfromforeigninvestments
D.Thetotalvalueofallgoodsandservicesimportedandexportedbyacountryina
year

26. Answer
5/11/2024Prep.By: Tatek T.
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B
Thetotalmarketvalueofallfinalgoodsandservices
producedwithinacountry'sbordersinayear

27. QUESTION
5/11/2024Prep.By: Tatek T.
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13.HowisGrossNationalProduct(GNP)differentfromGDP?
A.GNPincludesonlydomesticallyproducedgoods,whileGDPincludes
bothdomesticandforeigngoods.
B.GNPincludesthevalueofallgoodsandservicesproducedwithina
country'sborders,whileGDPincludesonlyfinalgoodsandservices.
C.GNPincludesthevalueofgoodsproducedabroadbyacountry'scitizens,
whileGDPdoesnot.
D.GNPincludesthevalueofgoodsproducedabroadbyacountry'scitizens,
whileGDPincludesthevalueofgoodsproduceddomestically.

28. Answer
5/11/2024Prep.By: Tatek T.
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C
GNP includes the value of goods produced abroad by a
country's citizens, while GDP does not.

29. QUESTION
5/11/2024Prep.By: Tatek T.
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14.Whichequationrepresentstherelationship
betweenGNPandGDP?
A.GNP=GDP-NFI
B.GNP=GDP+NFI
C.GNP=GDPxNFI
D.GNP=GDP/NFI

30. Answer
5/11/2024Prep.By: Tatek T.
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B
GNP = GDP + NFI

31. QUESTION
5/11/2024Prep.By: Tatek T.
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15.WhichapproachtomeasuringGDPinvolvesadding
themarketvalueofgoodsandservicesproducedby
eachsectoroftheeconomy?
A.Productapproach
B.Expenditureapproach
C.Incomeapproach
D.Value-addedapproach

32. Answer
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A
Product approach

33. QUESTION
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16.Which component is NOT included in the
calculation of GDP using the expenditure
approach?
A.Personal consumption of households (C)
B.Gross private domestic investment (I)
C.Government purchases of goods and services (G)
D.Net factor income received from abroad (NFI)

34. Answer
5/11/2024Prep.By: Tatek T.
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D
Net factor income received from abroad (NFI)

35. QUESTION
5/11/2024Prep.By: Tatek T.
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17.What is the significance of measuring real
GDP?
A.It reflects changes in the price level over time.
B.It accounts for differences in price levels between
countries.
C.It provides a more accurate measure of economic growth
than nominal GDP.
D.It measures the total value of goods and services
produced without adjusting for inflation.

36. Answer
5/11/2024Prep.By: Tatek T.
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C
It provides a more accurate measure of
economic growth than nominal GDP.

37. QUESTION
5/11/2024Prep.By: Tatek T.
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18.What does economic growth represent?
A.A decrease in the capacity of an economy to produce
goods and services
B.An increase in the cost of living
C.An increase in the standard of living and higher incomes
D.A decrease in the overall productivity of factors of
production

38. Answer
5/11/2024Prep.By: Tatek T.
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C
An increase in the standard of living and
higher incomes

39. QUESTION
5/11/2024Prep.By: Tatek T.
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19.What is the Human Development Index
(HDI) used for?
A.Measuring changes in the price level
B.Evaluating the overall quality of life and development
in a country
C.Calculating the rate of inflation
D.Assessing changes in real per capita income

40. Answer
5/11/2024Prep.By: Tatek T.
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B
Evaluating the overall quality of life and
development in a country

41. QUESTION
5/11/2024Prep.By: Tatek T.
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20.What is inflation?
A.A decrease in the general price level
B.A continuous rise in the general price level
C.A measure of changes in real per capita income
D.An increase in the purchasing power of money

42. Answer
5/11/2024Prep.By: Tatek T.
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B
A continuous rise in the general price level