Bole Bulbula General Secondary School

2016 E.C First semester Economics Mid Examination for Grade 12.
Name_________________________ Sec: ______ Roll №:___ Time: 40 minutes
I. Choose the correct answer from the following alternatives and write the letter of your
answer on the given blank space.
___ 1. Which one of the following is true about Measure approaches of GDP/DNP?

A. Product approach is estimated by summing personal consumption.

B. Expenditure approach is calculated GDP by adding market value.

C. Income approach is calculated in constant price level.

D. Expenditure approach is can be estimated by summing personal consumption.

__ 2. Real GNP is _____?

A. a accounts for difference in price level.

B. a accounts for constant price level.

C. is measured in actual market price.

D. total amount of final goods and services

__3. Which one of the following is NOT the key challenges of macroeconomics?

A. Economic growth. C. Business cycle.

B. Inflation. D. Nominal GDP.

__4. Which one of the following is NOT the component of Aggregate demand?

A. Private investment demand. C. Net export demand.

B. Government supply of goods. D. Household consumption demand.

__5.Which one of the following is NOT a macroeconomic questions?

A. What determines the level of economic activity in society?

B. What determines how many goods and services a national produces?

C. What determines how many jobs are available in an economy?

D. What causes a firm to grow?

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__6. If national economy is closed, a county has no interaction with the rest of the world, then,

A. GNP>GDP C. GNP=GDP

B. GNP<GDP D. GNP≤GDP

__7. Which one of the following alternative does not describe aggregate demand?

A. it’s the sum of spending money by consumers.

B. it’s the total expenditure of consumptions.

C. it’s the total supply of goods by all firms.

D. it’s the amount of money spend to purchase goods and services.

__8. Which one of the following is wrong about aggregate demand curve?

A. it shows the amount of real output buyers desire to purchase.

B. Its curve is upward sloping.

C. it shows AD rises with a fall in general price level.

D. its curve is downward slopes.

__9. One of the following is incorrect about interest rate effect?

A. higher price level decrease the demand for money

B. a fixed supply of money increase in money demand

C. higher interest rate curtail investment spending

D. Higher price level reduce the real output demand

__10. Which one of the following is true about increase in wealth?

A. Consumption increase =AD increase

B. Consumption increase =AD decrease

C. Consumption decrease =AD Increase

D. Consumption decrease= AD decrease

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__11. One of the following is correct about investment (I)?

A, decrease in interest rate=I ↑=> DA ↑

B, Increase in interest rate=I↓=>AD↓

C, decrease in interest rate=I↓ => DA ↑

D, All except C

__12. Suppose that the nominal wage is 45 dollar an hour, and the price level as measured by a
price index is 1.5. What is the real wage?

A. 50 B. 25 C. 60 D. 30

__13. Which one of the following is wrong concept about short and long run?

A. in long run the economy producer’s full employment

B. in short run at least one variable input is fixed

C. In long run all inputs are variable

D. in short run the economy produces full employment.

__14. Which one of the following refers to the recurrent ups and downs in the level of economic
activity?
A. Economic boom C. Unemployment
B. Economic trough D. Business cycle.
__15. Technological change has the largest impact on which form of unemployment?
A. Frictional Unemployment C. Cyclical unemployment

B. Structural Unemployment D. Economic growth

__16. Which one of the following is wrong about supply of labour?

A. The quantity supply of labour is directly related to the real wage.

B. The real wage rises, the quantity supply of labour rise.
C. The quantity supply of labour is inversely related to the real wage
D. As the real wage fall the quantity supplied of labour falls
__17 which one of the following is different from others?
A. total employment C. National income
B. Individual producer D. Aggregate supply

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__ 18. Which One of the following is not one of the three approach to measure GDP/GNP?

A. product approach C. Employment approach

B. Expenditure approach D. Income approach

__19. A regular and continues rise in the general price level is called?

A. defilation B. Inflation C. Economic growth D. Surplus

---20. If your current price total is 560 birr and your past price total is 400. What will be the
Inflation rate?

A. 40 B. 70 C. 130 D. 20

__21. The printing of money by a government to rise its revenue is known as

A. Corruption B. Seinorage C. National income D. Profit

__22. Which one of the following is true about the purchasing power of Ethiopian birr?

A. If dollar >ETB it’s appreciated. C. If dollar <ETB it’s appreciated

B. If dollar =ETB its depreciated D. If dollar < ETB it’s depreciated

__23. In which types of inflation the price of goods and services are uncontrollable?

A, walking Inflation B. Galloping Inflation C. Hyperinflation D .Running

inflation

__24. In creeping inflation, the price of the commodity increase at annually.

A. 3% or less B. 10% to 20% C. 3% to 10% D. Above 50%

__25. The long run aggregate supply curve price of the commodity is

A. constant B. Different C. decline D. rise

---26. Which one of the following is true about the peak point?

A. Full employment C. Inflation is high

B. high unemployment D. Low defilation.

__27. At the contraction inflation is; ___

A. high B. Low C. Slows D. Increase

__28 ___ point was increasing employment, Economic growth and upward pressure on prices

A. Peak B. Contractions C. Expansion D. Trough

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__29. In the point of depression; ---

A. Unemployment increases C. Decrease Inflation

B. Increase deflation D. Increase GDP

__30. Who is the Father of Economics?

A. Milton Friedman B. John Maynard C. John Tailor D. Adam smith

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