1.

Ethiopia has played very crucial role in the struggle for the independence of the one of the following
African countries. Which one?
A. Tunisia B. Nigeria C. Ghana D. Zimbabwe
2. Which of the following characteristics differentiates an assertive person from an aggressive one?
A. Agreeing with convincing ideas of other people
B. Attempting to gain control over all other groups
C. Assuming one’s own stand is always correct
D. Avoiding hurting others at the expense of one’s self
3. Identify the statement that does NOT imply assertive behavior:
A. Sharing experiences
B. Playing a positive role during conversation
C. Criticizing others and hasty generalization
D. Questioning meaningless traditions and practices
4. Many youngsters fall victim to the habit of smoking mainly because they:
A. live far from their parents and relatives
B. realized that smoking is mark of modernity
C. have income of their own at an early age
D. lack courage to resist their peers’ influence
5. Which of the following is NOT true about dependency?
A. It will create unbalanced economic relationship
B. It will create free market accesses to wealthy nations
C. It will make poor countries import manufactured goods, obsolete or used
D. It will result in sustainable economic growth
6. The ability to bear with unpleasant and annoying situation is known as
A. Assertiveness B. Arrogance C. Lenience D. Tolerance
7. One of the following Ethiopian rivers is different from others:
A. Abay B. Awash C. Tekeze D. Baro
8. Which of the following is correct about budget allocation for different regions of Ethiopia?
A. The federal government allocates and distributes money reasonably based on the specific
situations of different regions
B. The federal government allocates equal amount of money to all Nations, Nationalities and
peoples of Ethiopia
C. The federal government allocates less amount of money to less developed regions
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 D. The federal government allocates large amount of money to better developed regions
9. Assertive behavior includes all of the following, EXCEPT:
A. Questioning C. Critical arguments
B. Positive Thinking D. Hasty generalization
10. A self-reliant person is one who is
A. Self-sufficient in everything and requires no help from others.
B. Dependable to find solutions for serious social problems.
C. Refuses to accept the opinion of others at any time.
D. Aware of her/his own strengths and weaknesses.
11. If a person lacks self-confidence, he/she would NOT he expected to
A. Be a member of a certain community C. Engage in some type of work
B. Give respect to other people D. Stand up to challenging
situations
12. Proper recognition of our abilities, strengths and weaknesses implies:
A. Self-esteem B. self-reliance C. Self-respect D. self-awareness
13. Identify the correct statement from the given alternatives:
A. Self-reliance will normally lead to self-confidence
B. Self-confidence does not influence decision making
C. Self-confident individuals are not necessarily self-reliant
14. Self-confident individuals are always ready to:
A. hold back from telling the truth about others
B. flatter others in order to gain their good will
C. accept logical arguments and learn from them
D. avoid challenging situations or arguments
15. Which one of the following social groups is the most disadvantaged group in Ethiopia?
A. Artisans B. Women C. Children D. Persons with Disabilities
16. Which of the following is an attribute of a person who is self-confident?
A. Readiness to accept criticism
B. Determination to help other people
C. Reluctance to take on challenges
D. Having personal role models
17. Which one of the following is a correct match regarding attributes of self- reliance?

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 A. Self- confidence …… a drive to satisfy one’s own needs by claiming bigger share from
available resource.
B. Self- awareness …. a moderate view towards one’s strengths and weakness that promotes
knowledge of the true self.
C. Addictiveness …. an aggressive behavior through which one expresses presence, confidence
and power to secure recognition.
D. Independence …. a free and prosperous life achieved through disconnecting oneself from social
bond that can result in helping others.
18. An ethical consideration in decision making which argues that the outcome of any decision should
result in pleasure to the greatest number of people affected by the decision is:
A. rights approach C. ethical relativism
B. utilitarianism D. majoritarianism
19. Which one of the following is among the many benefits of self- awareness?
A. Readiness to be influenced by others.
B. Recognition of strengths and weaknesses.
C. Ability to develop a superiority attitude.
D. Give excuses to noticeable weaknesses.
20. Which of the following is among the attributes of self- reliant persons?
A. They do not receive support from their friends and relatives.
B. They have all kinds of abilities and skills to achieve their goals.
C. They share many characteristics of passive and isolated persons.
D. They have determination to earn their living from their own effort.
21. Which of the following is correct about self- reliance?
A. Self- awareness and passive behavior are important to develop self- reliance.
B. Manifesting an aggressive behavior is important to become a self- reliant person.
C. Self- confidence and assertiveness are among the attributes of a self- reliant person.
D. Self- reliant persons have a tendency of invading the personal boundaries of others.
22. Which of the following best explains the current economic policy of Ethiopia?
A. Permanent dependence on a agriculture and importation of industrial products.
B. Export- led growth in order to get earnings to import essential commodities.
C. Discouragement of direct foreign investment to enhance domestic industry.
D. Rapid industrialization to compete with the developed nations of the world.
23. Which of the following statement is true about peer influence?

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 A. Peer influence always has negative pressure that push individuals to start bad habits.
B. Every student is exposed to negative and positive group pressures in his/her school life.
C. Young people should avoid all kinds of peer influence in order to build an independent life.
D. Peer pressure is often associated with influences that encourage individuals to adopt positive
behaviors.
24. What is the major purpose of attracting foreign direct investment in the context of Ethiopia?
A. Protecting the country from the negative effects of economic globalization.
B. Allowing foreign direct investors to send most of their profit to their country.
C. Providing foreign direct investors with access to the resources of the country.
D. Fostering technology transfer, increasing productivity and income of the country.
25. Which one of the following is correct about decision making?
A. It is quite unrealistic to be morally sensitive while deciding on technical issues.
B. Good decision making usually requires organizing serious meeting with co-workers.
C. For business people moral sensitivity usually clashes with their decision of getting profit.
D. Sometimes people can do the right things without considering the moral dimension of their
actions.
26. What is the back bone of Ethiopia’s economy?
A. Agriculture B. Industry C. Commerce D. Service
sector
27. The payment that a person who wants insurance service pays to the insurer is known as
A. Collateral B. Indemnity C. Premium D. Warranty
28. At present, goods from other countries could be found at a cheaper price than those goods produced in
the country. What could be the final result of such practice?
A. Enabling the country to focus on other areas of production and wise use of available
resources
B. Increased dependency on foreign countries and disintegration of the national economy
C. Prosperity to the country as it could import cheaply and use the remaining money for
investment
D. Popular support to the policy that enable the people to get needed goods at a cheap price
29. One of the shortcomings of the traditional institution Idir for which it is criticized by some people is
that it
A. Gives services only to its members, not to non-members
B. Does not give interest on the money saved by the member

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 C. Is organized by people who have relatively equal position
D. Does not support very needy member while they are alive
30. How could banks pay important role in the proper use of money in a country?
A. By collecting money that is out of use in the economy
B. By lending money to people who applied for a loan
C. By lending money for most promising productive ventures
D. By issuing new money whenever the previous ones become old
31. What is the link between international economic realities and national economy in the context of
Ethiopia?
A. National economy is not affected by international economic realties
B. National economy cannot operate independently ant is influenced by international economic
realties
C. There is not direct link between internationals and national economic situations
D. Foreign investment does not support national economy
32. Identify the correct statement from the given alternatives about poverty eradication in Ethiopia?
A. Government institutions alone can succeed in eradication poverty
B. Humanitarian activity is not associated with poverty eradication at all
C. Government institutions must be supported by civil societies and humanitarian organizations
in the effort to eradicate poverty
D. Poverty eradication is not the major agenda of Ethiopia government and peoples
33. One reason why known drug addicts could NOT be expected to be responsible citizens is because there
is a very high possibility that they
A. Cannon stop taking drugs even if they are rehabilitated
B. Are afflicted by serious illnesses and could die of them
C. May not have enough money to support themselves
D. Could engage in criminal activities to satisfy their addiction
34. Why do many Ethiopians prefer to use imported products than the local ones?
A. Because all local products have poor qualities
B. Because all imported products have good qualities
C. Because there is a bad habit of giving low value for local products
D. Because Ethiopians have very little knowledge of making local products
35. Which of the following institutions has no role in shaping globalization?
A. World Bank Group C. World Trade Organization

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 B. Transparency International D. International Monetary Fun
36. In theory, Markets in free-market economic are regulated by:
A. relationship between demand and supply C. freedom given to merchants to fix prices
honestly
B. amicable relationship between sellers and buyers D. abundance of goods and
services in the market
37. Which one of the following is true about modern saving institutions in Ethiopia?
A. Modern saving institutions include Banks and Insurance companies
B. Modern saving institutions are inaccessible to the majority of the people
C. Modern saving institutions have completely replaced the traditional ones
D. Modern saving institutions are owned by the government alone
38. Which of the following mechanisms can be suggested to improve saving habits in Ethiopia?
A. Avoiding leisure activities at all C. Increasing salaries of government workers
every year
B. Avoiding social interactions and commitments D. Limiting one’s interests to one’s
income amount
39. To improve the life of their peoples governments of developing countries should:
A. Allocate greater budget for expansion of social services
B. Fix the price of basic necessities like food and clothing
C. Give economic subsidies to the poor so that they can compete
D. Provide food and material aid to the needy people
40. Ethiopian farmers are encouraged to produce and use organic fertilizers, as much as possible, mainly
because these fertilizers are:
A. proved to give much greater yield than the inorganic ones
B. sought after by exporters and could bring foreign exchange
C. easily produced in large quantities and sell to other farmers
D. environmentally friendly and do not harm the land
41. Which of the following is true about the Abay River?
A. It is the most utilized river in Ethiopia
B. It is the bond that links Ethiopia, Egypt and Sudan
C. It is the only cross-boundary river in Ethiopia
D. It is the only river that has never attracted the attention of Europeans
42. Which of the following most widely practiced indigenous mechanism of saving in Ethiopia?

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 A. Agriculture B. Industry C. Afersata D. Gudifacha
43. A mechanism by which people spend their money to get profit, expand their business and contribute to
the development of national economy is
A. Planning B. Saving C. investment D. cost effectiveness
44. Saving should be understood as
A. Hording money for ;the sake of having it C. Forfeiting necessities to keep money
B. Planned and wise use of money D. Refraining from spending money
45. It is possible to reduce the poverty situation in Ethiopia by
A. Focusing all attention on agricultural production rather than on industry
B. Providing quality basic education to the uneducated and eradicating illiteracy
C. Working to expand export of unfinished good in order to import food items
D. Giving financial support to the people who are living in absolute poverty
46. What comparative advantage could Ethiopia offer to potential foreign investors more than anything else
now?
A. Modern and up-to date communication system
B. Highly educated industrial work force
C. Easy access to maritime transport to facilitate export
D. Abundant work force that could be easily trained
47. To achieve the planned goal of change and transformation Ethiopia needs to
A. Apply the basic principles of Neo-Liberalism
B. Abolish all indigenous institutions like edir
C. Apply scientific and technological knowledge and promote socio-cultural values
simultaneously
D. Endorse closed-door policy to avoid the negative influence of globalization
48. The developing countries of the world are highly dependent on rich nations. This practice has brought
about
A. Speedy economic and social development in the developing nations
B. Improvement in the ability of the poor nations to stand for their interests
C. Increased interference of rich nations in the internal affairs of the poor nations
D. Equitable and mutually beneficial relationship between the poor and rich nations
49. Chewing Chat, smoking Cigarettes and drinking alcohol are no advised as leisure activates, particularly
for young students like you because:
A. They are expensive for students

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 B. Of the problem of addiction and consequent effects
C. Such practices would retard the memory of students
D. Such practices are out of the norms and values of Ethiopians.
50. Which of the following true about Idir and Equb?
A. Both are traditional saving institutions in Ethiopia
B. Both are practiced only in the rural parts of Ethiopia
C. Idir is not associated with saving
D. Equb is a backward saving system which is now being totally replaced by modern banking

51. The FDRE government can nationalize privately owned property provided that:
A. the property is owned by a suspected criminal
B. the owner failed to pay taxes or bank loans
C. the owner is amply or adequately compensated
D. the property is found to be unproductive under the owner
52. The principles of free market economy include all the following except:
A. freedom of decision to economic agents
B. less government involvement in the market
C. letting market forces determine the extent of transactions and prices
D. having prices fixed for commodities by the government
53. What are the two major international monetary institutions?
A. IMF and WHO
B. World Band and WHO
C. World Bank and IMF
D. IMF and FAO
54. Which of the following is true about Macro economics?
A. It deals with the behavior of individual economic agents
B. It deals with the working of the overall economy
C. It deals with the activities of industrial sector
D. It deals with traditional saving mechanisms
55. Which of the following is true?
A. There is no relationship between saving and development
B. Idir and Iqub are backward saving mechanisms that do not help individuals improve their
lives

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 C. Saving plays a crucial role in the development endeavors of countries like Ethiopia
D. World Bank is the only global monetary organization
56. What does wise saving mean?
A. Saving money even before satisfying your basic needs.
B. Saving money after satisfying all your personal wants.
C. Saving money after satisfying your basic needs.
D. Saving money by reducing from your basic needs.
57. What is the best mechanism to develop the habit of saving?
A. consume one’s income at once.
B. maximize extravagant purchase.
C. limit interest to one’s income.
D. spend more money than one earns.
58. Which of the following is an international organization that gives loans and grants to national
governments?
A. world trade organization C. United nations security council
B. international monitory fund D. international labor organization
59. One of the following personal practices contribute for improving the habit of saving. which one is
it?
A. Engaging in impulsive purchase if it is within one’s own means.
B. Purchasing law cost and low quality goods and services of personal use.
C. Avoiding spending on some of the basic needs which do not have immediate lethal
consequence.
D. Avoiding extravagance and spending one’s income on goods and services which are really
necessary.
60. Which of the following best explains new thinking is saving?
A. Spending money on expensive imported products.
B. Wastage of inputs to reduce coast of production.
C. Avoidance of cheap locally manufactured goods.
D. Feeling proud of buying locally produced items.
61. Which of the following is the best approach to use our money wisely in the process of purchasing
goods?
A. Concentrating on high quality goods imported from Europe.
B. Considering our budget, the quality and price of the goods.
C. Choosing cheap imported goods regardless of their quality.
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 D. Choosing high quality and fashionable goods as much as we can.
62. Which one of the following is correct about macroeconomics?
A. It studies the behavior consumers and producers.
B. It is more important in economic studies that microeconomics.
C. It analyses the economic welfare of a particular group of people.
D. It is an approach to analyze the growth performance of a country.

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