Economics second round model exit exam 2016

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Economics second round model exit exam 2016

Choose the best answer

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1) A macroeconomic policy is said to be conducted by rule if policymakers:

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2) Which of the following statements is necessarily incorrect about AK endogenous growth model?

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3) Which one of the investment theory shows the linkage between fluctuation in investment and stock markets

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4) According to the Life-Cycle hypothesis

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5) If the monetary base is $500 billion, the reserve deposit ratio is 0.1 and currency-deposit ratio is 0.6; what will be the money multiplier and the money supply respectively?

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6) _____________is the purchase and sale of government securities by the central bank to maintain the proper level of money supply in the economy.

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7) According to Keynes the Motive for people to hold money as a cushion against an unexpected need is called

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8) Which of the following countries have greater balance of payment?

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9) Which of the following represents trade pessimists?

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10) Pick a region of the world among which the life expectancy is relatively highest

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11) One of the following factors inversely affects the demand for education

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12) Which of the following is not economic cost of corruption?

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13) Which of the following is not causes of inequality?

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14) Which of the following is false according to Lewis model regarding traditional sector?

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15) The physical quality of life index (PQLI) is an aggregation of widely available indicators of basic human needs. Which of the following is not a component of the PQLI?

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16) Non-traded goods do not enter measured GDP because

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17) A ________ occurs if all players in a game play their best strategies regardless of what their competitors do.

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18) The general equilibrium of production occurs at a point where the _________ is the same for all the firms, that is, at a point which satisfies the Pareto Optimality criterion of efficiency in factor substitution.

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19) A profit-maximizing firm hires labor up to the point where

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20) Oligopolistic industries are characterized by:

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21) When comparing monopolistic competition and perfect competition markets, which of the following is true?

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22) The following is incorrect about the relationship between MC, AVC and ATC curves

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23) Implicit costs are costs :

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24) A form of oligopoly in which a dominant firm sets the price and all smaller firms in the industry follow the dominant firm’s pricing policy is called

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25) According to the balanced growth theory, underdevelopment would be solved by

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26) Which one of the following is not correct

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27) The type of monopoly that was created due to efficiency in producing certain product

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28) Which of the following is not the possible sources of monopoly?

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29) Under perfectly competitive market in long run, equilibrium condition for firms will be:

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30) In TR-TC approach, firms in perfectly competitive market get positive profit at the point where;

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31) Identify correct statement about the assumption of perfectly competitive market structure

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32) Given the supply and demand functions for two related goods, tea and coffee,
Q_d^t=30-8P_t+2P_c , Q_S^t=-15+2P_t
〖 Q〗_d^c=28+4P_t-6P_C , Q_S^C=12+2P_C
Where〖 Q〗_d^t,〖 Q〗_d^c, Q_S^t, Q_(S,)^C P_t and P_c represented quantity demand for tea and coffee, supply of tea and coffee, price of tea and coffee respectively. What is the equilibrium price of tea

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33) Given the supply and demand functions for two related goods, tea and coffee,

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34) Which one of the following represent the solution of difference equation x_(t+1)=1⁄2 x_t+3

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35) Which one of the following is the general solution of differential equation (x ) ̇+2x=8

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36) Given demand function p=30-4Q , what is consumer surplus at Q=5

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37) The derivative of multivariate function y=x_1^2 x_2 , where x_1=t^2 and x_2=3t-1 is

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38) Suppose that m=100-200t+250t^2, where m is import and t is tariff. Using differential approximation what is the change in import if the initial tariff rate is 0.2 and it is scheduled to rise to 0.25?

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39) Given production and constraint functions Q=L^.25 K^0.75 and 2X_1+4X_2=100 respectively , what is the amount of labor and capital which maximize the above production function?

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40) Consider production function Q=300√L -4L . where Q denotes output and L denotes the size of work force , what is the value of 〖MP〗_L when L=9?

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41) According to _______________ the SRAS & LRAS curves differ because of temporary misperceptions about prices.

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42) A curve which plots the relationship between equilibrium interest rate and income in money market is

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43) Which one is the link variable between goods market and money market in IS- LM model?

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44) Which of the followings shows surplus trade?

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45) Which of the following statements is incorrect?

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46) Which of the following is true regarding aggregate demand curve?

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47) Which of the following statements is incorrect?

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48) Reasons for using Panel Data doesn’t include

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49) For an equation to be identified

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50) Which of the following is incorrect about simultaneous equation model?

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51) If the trend in a time series is completely predictable and not variable, we call it

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52) which of the followings is not among problems of linear probability model:

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53) Which of the following is correct?

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54) Which of the following statements is incorrect?

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55) Which of the following statements is correct?

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56) ________________ analysis is concerned with describing and explaining the relationship between an explained variable and one or more of the explanatory variables.

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57) Which one is equal to explained variation divided by total variation?

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58) Consider the equation, y = α+β1×1 + β2X2 + u. null hypothesis, H0: β2 = 0 states that:

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59) Which of the following is among rules of thumb to address the problem of multicollinearity?

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60) Which of the followings might not reasons why variances of may be variable?

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61) Which of the following statements is incorrect?

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62) Which of the following is incorrect statement regarding classical linear regression model assumptions?

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63) Which of the following statements is correct?

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64) All of the following statements are considered correct under absorption approach, except:

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65) _____an economic term for the negative consequences that can arise from the spike in the value of a nation’s currency

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66) Which one of the following is not an obstacle for international macroeconomic coordination:

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67) From the following one is not categorized under expenditure switching policy:

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68) Which of the following is a disadvantage of a fixed exchange rate system?

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69) The Marshall-Lerner condition states that a currency depreciation will improve a country’s trade balance if:

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70) The J-curve effect refers to the idea that:

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71) From the following one does not describe the function of commercial banks in FORX market:

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72) From the following which one is the ultimate goal of monetary policy.

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73) From the following statement which one is wrong?

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74) Which of the following is not an asset of central bank?

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75) Which of the following is incorrect regarding Keynesian demand for money?

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76) Which of the following is incorrect about classical theory of money?

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77) Which of the following is the advantage of financial intermediaries?

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78) The process of indirect finance using financial intermediaries is known as?

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79) Which of the following is incorrect about equity (common stock) and debt holder?

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80) Which one is not Activities and responsibilities of Central Banks?

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81) According to the Heckscher-Ohlin model, a country that is relatively abundant in capital will tend to:

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82) Static comparative advantage goods in developing countries

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83) The form of economic integration in which the member nations eliminate tariffs on trade among themselves, adopt a common external tariff wall. and allow for the free movement of labor and capital within the union is the

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84) If a good is imported into (large) country H from country F, then the imposition of a tariff in country H

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85) Intra-industry trade can be explained in part by:

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86) Which trade theory suggests that a newly produced good, once exported, could ultimately end up being imported as the technology is transferred to lower-cost nations?

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87) Which of the following is an example of a regional trade agreement?

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88) Which of the following is an example of a comparative advantage?

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89) process of seeing what changes in the value of the dep’t variable is consequent on a change in the value of one or more of the variables in project analysis is :

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90) An increase in the net working capital in a project corresponds a cash outflow to be financed. In project analysis costs are easier to identify or value than project benefits.

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91) Suppose you are some type investor and submitted your investment to Ethiopian investment commission, and then a team of investment commissioners started to analyze your proposal. Hence this stage is:

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92) Which one of the following is a micro level source of a project:

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93) If a project involves improvement in several non-monetary dimensions, we use which method?

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94) In economic analysis, we cannot use market price to value the economic worth of projects, because of the following reasons, except?

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95) Ex-post evaluation involves the following, except?

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96) Which one of the following statement is true regarding monitoring and evaluation?

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97) The line joining the different points of consumer’s equilibrium resulting from the change only in the price of the commodity is called

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98) Assume a budget line is drawn for two commodities: X on the x-axis and Y on the y-axis. If the income of the consumer is 100 Birr, the y-intercept is 4, and the slope of the budget line is 2 in absolute value, the price of commodity Y is:

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99) Which one of the following is correct?

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100) In a single commodity case; If MUX > Px, how will the consumer react?

Your score is

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Economics 2016 Model Evening

324

Economics 2016 Model Evening

Choose the best From the Alternative

1 / 100

Balanced growth theories of Ragnar Nurkse advocate

2 / 100

According to W.W.Rostow, which of the following does not belong to the “precondition for takeoff”?

3 / 100

According to the Harrod-Domar model, an increase in growth rates depends on one of the followings

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The main domestic source of savings in LDCs is

5 / 100

Which of the following describes an increase in technological knowledge?

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Identify the incorrect statement according to the Solow growth model.

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Which of the following is the make the Tobin’s q model different from neoclassical model?

8 / 100

Which the following countries have higher fertility rates?

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Which of the following case contributes for the higher population growth?

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Which of the following statement is false?

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Compared to the developed countries, the LDCs have

12 / 100

The Malthusian theory of population growth, as formulated by Malthus, proved

13 / 100

Which of the following is not true about agriculture's role in economic development

14 / 100

Economy can face trade deficit due to one of the following results

15 / 100

Identify incorrect statement about the difference between differentiation and integration

16 / 100

If the profit (π) of a company is linear function of output (x) which is given as π(x)=3x+5 then, the value of marginal profit is_______

17 / 100

Given polynomial cost of production function as ƒ(x) = 3×3 – 4×2 + 6x+200. Then at when 2 units of output are produced (i.e. at x=2),

18 / 100

One of the following integrals is indefinite integral

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Given the marginal saving as a function of income (x) as MS(x)=, then how much is the total saving between 2 and 4 income level

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1.      Derivative of one of the following is equivalent to its integral

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integration of one the following function is equal to

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Suppose that the National Bank of Ethiopia purchases Birr 100 of bonds from a bank and pays for them with a Birr 100 check. From this information which one is correct?

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Among the player in money supply process which one is an individuals and institutions that save in banks mostly.

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If the person or corporation selling the bonds to the Central bank and cashes the Central bank's check at a local bank for currency, which would be incorrect alternative on the possible impact of this OMO on reserve, security and monetary base?

25 / 100

Which of the following are financial intermediaries that accept deposits from individuals and institutions and make loans.

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Which of the following factors that affect liquidity of an asset?

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Which one is incorrect about open market operation from the following statements?

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Which one of the following is a direct monetary instrument of central bank?

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From the following which one is considered as the liability of central bank?

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People hold their wealth in different assets and money is one alternative of holding wealth. This statements best suit for which motive of money?

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Which of the following is not characteristic/assumption of monopolistic competition market?

32 / 100

Which of the followings can be rationale for collusion?

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In Cournot model if there are 6 firms in the industry each will provide _______ of the market, and the industry output will be _________. The missed values in this statement are respectively

34 / 100

Suppose that the probability of players playing low price is 25% and playing high price is 75%. Then what is the mixed strategy Nash equilibrium of this game?

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Monopolistic exploitation is occurred

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Which of the following is incorrect about technological Progress and income distribution?

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Moral hazard is an information problem that arises when:

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_____________ is the process by which sellers send messages to buyers conveying information about product quality.

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Which of the following statement is false?

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Which one of the following schools of economic thought favor “Laissez-faire”?

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Which of the following statements is correct?

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……………….. is the purchase of new plant & equipment by firms to add to their stock of capital & to replace existing capital as it wears out.

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……………………..is a decrease in private investment as a result of a rise in government purchase/ investment.

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Which of the following is true regarding aggregate demand curve?

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Which of the following statements is incorrect?

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If the government of Ethiopia decreases the price of one dollar from Birr 55/$1 to Birr 50/$1 we say that

47 / 100

Which of the following is incorrect regarding IS-LM model?

48 / 100

In Imperfect-Information Model

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Which of the following is not the basic characteristic of project?

50 / 100

The static method doesn’t include:

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If the price of inputs and outputs of the project are proposed to be greatly affected by inflation over the entire life span of a given project we have to value costs and benefits of that project by:

52 / 100

The advantage of NPV include

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Which of the following is different from the others?

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The problems of valuing the benefits of social sector projects stem from

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Non tradable goods can’t inter international trade because of

56 / 100

Suppose that Fitche town administration launched females training project which will be completed within three years. The town will present facilities, trainers and training modules. The trainers will properly lecture and guide 500 youth who will attend the training course. Suppose also that only 100 females will successfully graduate from the training project. From those who will graduate only 50 females achieved the required skill and will be employed in various sectors. As a result the annual income of Fitche town will be increased by 10 million Birr. Then the outcomes of this project will be respectively.

57 / 100

Which of the following models are linear in both parameters and variables?

58 / 100

Which of the following is not feature of time series data?

59 / 100

Which of the following is incorrect statement regarding to classical linear regression model assumptions?

60 / 100

Which of the following is not among formal methods of detecting Hetroscedaicity?

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Which of the following is correctly defined:

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Suppose that we estimate the model given as : Y_i=α+βX_i+u_i from the data collected from a sample size of 10 and we got RSS=200 and ESS = 200. Then which of the following can be the value of coefficient of determination?

63 / 100

To test the significance of the OLS parameter estimators we need, except

64 / 100

A strategy in which trade and industrial incentives are biased in favor of production for domestic market over the export market.

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Which one of the following was not principle of GATT

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Which one of the following is the most radical form of economic cooperation?

67 / 100

From the following one is not Major features of mercantilists

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  For Heckscher and Ohlin, the most important cause of the difference in relative commodity price and trade between nations is a difference in

69 / 100

Temporary trade restrictions for new industries until they build competition capacity is refereed as ________________

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One of the following is not an opportunity of WTO membership

71 / 100

According to the permanent income hypothesis, consumption is primarily determined by:

72 / 100

When you deposit birr 100,000 in your local bank such as Commercial Bank of Ethiopia, even though you can withdraw that amount at any time:

73 / 100

If we assume workers and all jobs are the same and each worker equally well-suited to each job, then:

74 / 100

The American economist, Robert Lucas has argued that traditional methods of policy evaluation:

75 / 100

A time-inconsistency problem in macroeconomic policy can occur when the policymaker:

76 / 100

In the Solow growth model, if the capital stock is below the Golden Rule level:

77 / 100

Which of the following statements is necessarily correct?

78 / 100

The Solow growth model shows that:

79 / 100

A high level of tariff rate that aims is to stop all international trade is ____________.

80 / 100

Given that the spot rate of Yuan today is $2.00 while the 3 month forward rate is $2.02, how can a U.S. importer who has to pay ¥10,000 in 3 months hedge his foreign exchange risk?

81 / 100

If birr’s and dollar’s interest rate are 0.01 and 0.02 respectively, and the current exchange rate is 105.

82 / 100

The statistical discrepancy component of a balance of payment is used to:

83 / 100

According to the J-curve effect, when the exchange value of a country’s currency appreciates, the country’s trade balance:

84 / 100

The main difference between the monetary approach and the portfolio balance approach is that:

85 / 100

In the Mundell-Fleming model under fixed exchange rates, the automatic adjustment process produces BoP equilibrium as:

86 / 100

The monetary approach to BoP adjustment has been subjected to criticisms on all of the following grounds, except the assumption of:

87 / 100

Given the foreign currency market for the Kenyan shilling, the supply of shillings slopes upward, because as the dollar price of the shillings rises:

88 / 100

If a researcher has a qualitative information independent variable and introduce all the categories in to a regression model without creating a benchmark. Hence she will face a Problem of:

89 / 100

If all the explanatory variables are qualitative information, and you run regression without including an intercept term, the estimated coefficients represent :

90 / 100

It is possible to convert the coefficients of logit estimation to their probit perspective by multiplying them √3/( π). According to Amemiya it is possible to convert LPM coefficients with same conversion factors to logit coefficient irrespective of which coefficient in the model.

91 / 100

Which of the following is correct concerning logit and probit models?

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Suppose that we estimate a logit model based on an intercept and two explanatory variables and the parameter estimates are respectively β ̂_1=0.1,β ̂_2=0.3 and β ̂_3=-0.2, the average values of the explanatory variables are X ̅_1=0.5,X ̅_1=0.8. A 1-unit increase in X_2 will cause an increase in the probability that the outcome corresponding to Y=1 to

93 / 100

In the context of simultaneous equations modeling, which of the following statements is true concerning an endogenous variable?

94 / 100

If OLS is applied separately to each equation that is part of a simultaneous system, the resulting estimates will be

95 / 100

Which one of the following is false?

96 / 100

Which one of the following is not true about Stage one production period?

97 / 100

In the long run the average cost fulfills the following, except:

98 / 100

The main decision for a profit maximizing perfectly competitive firm is NOT what ________ but what ________.

99 / 100

When a perfectly competitive firm makes a decision to shut down, it is most likely that

100 / 100

he short run supply curve of a competitive market firm is:

Your score is

Economics regular model exit 2016

445

Economics regular model exit 2016

Choose the Best from the Alternatives

Please fill the following

1 / 100

In a given market, consumers' surplus would, all else equal, be increased by:

2 / 100

In order to determine whether to use a fixed effects or random effects model, a researcher conducts a Hausman test. Which of the following statements is false?

3 / 100

Which of the following are advantages of the use of panel data over pure cross-sectional or pure time-series modeling?(i) The use of panel data can increase the number of degrees of freedom and therefore the power of tests(ii) The use of panel data allows the average value of the dependent variable to vary either cross-sectionally or over time or both(iii) The use of panel data enables the researcher allows the estimated relationship between the independent and dependent variables to vary either cross-sectionally or over time or both

4 / 100

According to the Marshall-Lerner condition, if a country's currency depreciates its trade balance will worsen if elasticity of demand for exports is ______ and elasticity of demand for imports is _______.

5 / 100

Assume that Kenya faces an 8% inflation rate while no inflation exists in Japan. According to the purchasing power parity theory, in the long-run Kenyan shilling will be expected to: