Author: Tadele Anagaw

1) When the firm experiences increasing marginal returns _______________________.

2) A movement along a demand curve can be caused by a change in ___________.

3) Long run production function is a relationship between _____________.

4) In a simple model of resource market, a household is_______

5) Marginal cost and average cost are the same at the output level in which ______________.

1) The infant industry arguments refers to a tariff designed to

2) _________ occurs when one observation’s error term (εi) is correlated with another observation’s error term (εj):

3) Development economics focuses primarily on the poorest ___________ of the world’s a. population

4) H Company is studying a project that would have an eight-year life and would require a 300,000 investment in equipment which has no salvage value. The project would provide net income of 112,500 for the life of the project; What is the payback period for this project?

5) Which of the following is true about marginal extraction cost?

6) Infant mortality means__________?

7) _______refers to the difference between the price at which a good is purchased from another company and the price at which it is sold to the consumer.

8) If rate of interest is greater than the increase in price per unit;

9) If the a company produces a new product and offering for sell at low price initially to gain customers’ attention. This types of pricing strategy is called___________

10) _________is a strategy used to set prices according to current prices in the market for the same or similar products or services.

11) Which of the following could be considered critical questions in development economics?

12) Country A limits other nation’s exports to Country A to 1,000 tons of coal annually. This is an example of ___?

13) Which of the following is example/s of fund pollutant?

14) Imports are defined as the goods and services that we

15) When countries trade according to each country’s respective comparative advantage

16) _______ is the difference between the price paid by the consumer and price received by the farmer.

17) Economic development refers to

18) Autarky refers to a country

19) ___________is used to test the overall Significance of Regression Model

20) If producers sell new and innovative, or improvised products or services at a high price for a short period of time and then the types of pricing strategy that the producer uses is _____________.

21) Assume the regression of log(wage)=0.25+0.75education, then which of the following is true?

22) Which of the following statements is not true about import restriction

23) Factor proportions theory is also known as the

24) ________ is a pricing strategy that utilizes competitor prices as a benchmark, rather than setting a price based on company costs or customer value.

25) The standard error test of the parameter estimates measure:

26) What is hedonic price in environmental valuation?

27) Economic growth measures the

28) An underdeveloped economy is characterized by

29) Which of the following is the first stage in contingent valuation techniques?

30) The World Trade Organization

31) Market does not naturally lead to the optimal allocation of pollution emission. Because;

32) International trade and specialization are determined by

33) Which of the following characteristics are most likely found in developing countries?

34) The biological maximum of fish population is occurred at;

35) How can we measure the goodness of fit in binary regressand model?

36) The impact of the project on international trade is reflected through

37) ___________is below the income that secures the bare essentials of food, clothing, and shelter.

38) Which of the following tests compares the residual sum of squares computed with and without the restrictions imposed?

39) The practical application of present value method includes one of the following except

40) _________are incurred when commodities move from the farm to the final market.

41) When the fitted linear regression is given by Yi= 8+0.82Xi, the value of 0.82 shows:

42) Which one of the following is incorrect about marketing cost?

43) A country has a balance of trade deficit if the value of its exports are ____ the value of its imports

44) The Human Development Index (HDI) summarizes a great deal of social performance in a single composite index, combining

45) ______ is the methodologies and tactics adopted by the companies to convey the messages in a unique and creative manner to their existing and prospective customers about their offerings of products and services.

46) Income inequalities are often shown on a

47) _________is the set of marketing tools the firm uses to pursue its marketing objectives in the target market.

48) What is the principle behind time value of money?

49) Which of the following are not third-world regions?

50) _________ is a strategy that focuses on customer preferences and requirements.

51) Which of the following factors are led to the growth in agricultural marketing?

52) Which of the following countries is not a low-income country?

53) _________ is the term that shows/measures the degree of market performance

54) Which of the following is false about economic analysis of project

55) Which of the following is different from the others?

56) Based on the data given above, what is the company’s accounting rate of return?

57) _______ are buy farm products from wholesalers and other actors and sell them to the consumers in small quantities.

58) ____is the study of all activities, agencies, and policy involved in the procurement of farm inputs and the movement of agricultural product from the farms to the consumer.

59) What is the Gross National Product:

60) The Physical Quality of Life Index (PQLI) combines three indicators. They are

61) ______ describes the direction and volume of goods flow from producers to consumers.

62) V Company is considering a project that would require an investment of 48,000 birr. No other cash outflows would be involved. The present value of the cash inflows would be 52,800 birr. The present value index of the project is:

63) Non-tradable goods are goods that do not enter into the international trade because of their;

64) The zero conditional mean assumption shows that;

65) To say a give natural resource is essential;

66) Which of the following is true about opportunity cost?

67) The Harrod-Domar growth model suggests that growth is

68) Assume that the project requires 10,000 unskilled labours for which the project control board (project promoter) has decided to pay a Br. 10 daily wage rate. The shadow price of unskilled labour is Br. 6 per day. What is the cost of unskilled labour from Private and economic point of view?

69) Assume that a project is expected to have initial investment and life of Br. 350,000 and five years respectively. The annual cash flow estimated at 12 % discount rate is Br. 125,000 for each of the five years and the discount factor from the present value of annuity of table is equal to 3.605. What are the NPV?

70) Which one of the following is different from the other?

71) If a nation imports a good that can be domestically produced, the market price of the good

72) If there is high collinearity problem between variables;

73) Assume a project whose NPV is 785 & -963 at discount rate of 6% and 7% respectively. What is the IRR?

74) If the error terms of an equation has heteroscedastic problem;

75) Which of the following are /is the cause of heteroskedastic problem?

76) Which of the following is not an element of the marketing mix?

77) Which of the following is false about revealed preference approach?

78) Balanced growth theories of advocates___________?

79) Which one of the following is incorrect statement about pricing strategy

80) Present values are better than the same values in the future. Thus, which method can be used to include the time dimension in a given project evaluation

81) When project gets acceptance in discounted investment criteria?

82) U Company has several investment opportunities to evaluate, but does not have the funds to invest in all of them. Which calculation would be best to determine which project(s) to choose?

83) When Leontief tested the predictions of the Heckscher-Ohlin theory, he found that in 1947 the United States was exporting relatively labor-intensive goods and importing relatively capital-intensive goods. This was called the Leontief Paradox. This finding:

84) Suppose you have given the costs and benefits of project in the form of cash. If you want to check the project worthiness and made investment decision through discounted measures of project worth, so what you should be done?

85) How can we know the presence of heteroscedastic problem?

86) _______is designed to estimate the linear relationships between variables when either left or right censoring in the dependent variable (the dependent variable is between 1 and 0).

87) Which one of the following is incorrect about market classification?

88) With international trade, a country

89) Suppose the project requires indigenous power equipment costing Br. 900,000 (estimated by project promoter). The power equipment produced indigenously is a tradable item whose FOB value is $100,000. The shadow price per dollar is Br. 9.5, though the official price is Br. 8.925. What is the cost of power equipment from private and economic point of view?

90) If a firm has a number of proposals which all have a positive NPV and IRR that exceeds the cost of capital, but can’t undertake these entire projects because of limited availability of fund. So what the firm should perform in order to rank these projects?

91) Asian tigers countries of East and Southeast Asia include the following except

92) With perfect income equality the Gini coefficient in a country would be

93) Which of the following is true about Environmental economics?

94) What is gross domestic product (GDP)?

95) ____is the process of determining the needs and wants of consumers & being able to satisfy those needs & wants profitability

96) According to Rostow’s economic stages, which of the following does not belong to the “precondition for take off”:

97) The main differences between economic and financial analysis of a project lies on

98) Which one of the following is incorrect?

99) Which of the following is correct about public goods in economic analysis project?

100) As it relates to international trade, dumping