Category: Economics

Balanced growth theories of Ragnar Nurkse advocate

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

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

The main domestic source of savings in LDCs is

Which of the following describes an increase in technological knowledge?

Identify the incorrect statement according to the Solow growth model.

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

Which the following countries have higher fertility rates?

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

Which of the following statement is false?

Compared to the developed countries, the LDCs have

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

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

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

Identify incorrect statement about the difference between differentiation and integration

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_______

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),

One of the following integrals is indefinite integral

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

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

integration of one the following function is equal to

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?

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

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?

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

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

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

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

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

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

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

Which of the followings can be rationale for collusion?

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

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?

Monopolistic exploitation is occurred

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

Moral hazard is an information problem that arises when:

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

Which of the following statement is false?

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

Which of the following statements is correct?

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

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

Which of the following is true regarding aggregate demand curve?

Which of the following statements is incorrect?

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

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

In Imperfect-Information Model

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

The static method doesn’t include:

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:

The advantage of NPV include

Which of the following is different from the others?

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

Non tradable goods can’t inter international trade because of

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.

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

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

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

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

Which of the following is correctly defined:

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?

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

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

Which one of the following was not principle of GATT

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

From the following one is not Major features of mercantilists

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

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

One of the following is not an opportunity of WTO membership

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

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:

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

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

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

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

Which of the following statements is necessarily correct?

The Solow growth model shows that:

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

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?

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

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

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

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

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

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

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

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:

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

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.

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

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

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

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

Which one of the following is false?

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

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

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

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

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

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

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?

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

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 _______.

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:

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

The steady state growth rates in the Solow growth model with technological progress indicates:

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

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

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

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

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

Which one of the following is false?

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

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

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

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

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.

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

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:

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

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

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

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

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

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

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

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?

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

The Solow growth model shows that:

Which of the following statements is necessarily correct?

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

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

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

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

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:

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

One of the following is not an opportunity of WTO membership

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

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

From the following one is not Major features of mercantilists

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

Which one of the following was not principle of GATT

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

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

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?

Which of the following is correctly defined:

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

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

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

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

Which of the following is different from the others?

In Imperfect-Information Model

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

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

Which of the following statements is incorrect?

Which of the following is true regarding aggregate demand curve?

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

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

Which of the following statements is correct?

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

Which of the following statement is false?

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

Moral hazard is an information problem that arises when:

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

Monopolistic exploitation is occurred

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?

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

Which of the followings can be rationale for collusion?

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

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

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

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

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

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

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

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?

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

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?

integration of one the following function is equal to

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

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

One of the following integrals is indefinite integral

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),

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_______

Identify incorrect statement about the difference between differentiation and integration

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

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

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

Compared to the developed countries, the LDCs have

Which of the following statement is false?

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

Which the following countries have higher fertility rates?

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

Identify the incorrect statement according to the Solow growth model.

Which of the following describes an increase in technological knowledge?

The main domestic source of savings in LDCs is

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

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

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