AbrariAbrari
Practice
Menu
PapersTopicsTextbooksCOC / TVET

Unofficial practice · EUEE

2016 E.C. Economics EUEE past paper

70 questions · 2016 E.C. / 2024 G.C. · Social stream · unofficial

Unofficial practice for the 2016 E.C. / 2024 G.C. Economics Ethiopian University Entrance Exam (EUEE / matric). 70 question stems from the Abrari bank are listed below. Not an official Ministry, EAES, MoLS, or OCACC paper.

ይሞክሩ · Try 5

Try 5 Economics questions

5 የኢኮኖሚክስ ጥያቄዎች

መግቢያ አያስፈልግም · No sign-in needed

Unofficial EUEE past-paper items. Not an official key.

1 / 5economicsAggregate supply

Which one of the following represents the increase in the quantity supplied of real GDP due to the increase in the price level?

Unofficial practice. Abrari is an independent study aid and is not affiliated with, endorsed by, or an official product of the Ethiopian Ministry of Education (MoE), EAES, MoLS, or OCACC. Answers are Abrari keys, not an official marking scheme.

Related study

Grade 12 Economics textbookEconomics exam topicsFull Economics practice

Other Economics papers

Questions on this paper

Stems are visible for study. Worked solutions stay inside each item and are unofficial.

Q1 · Aggregate supply

Which one of the following represents the increase in the quantity supplied of real GDP due to the increase in the price level?
  1. A. The right wards shifts of the aggregate supply curve
  2. B. The left wards shifts of the aggregate supply curve
  3. C. The downwards movements along the aggregate supply curve
  4. D. The upwards movements along the aggregate supply curve
Worked solutionUnofficial

Unofficial keyed letter D. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q2 · Long-run equilibrium

When the economy is in the long run, which of the following is correct?
  1. A. Sticky wages and workers misperception still holds true.
  2. B. What the economy produces is the full employment real GDP.
  3. C. The short run and the long run real GDP will be the same.
  4. D. The level of real GDP the economy produces is less than the natural real GDP.
Worked solutionUnofficial

Unofficial keyed letter B. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q3 · Short-run price adjustment

What is the pressure on price when the quantity demanded of real GDP is greater than the quantity supplied of real GDP during the short run?
  1. A. The price level rises
  2. B. The price level drops
  3. C. No pressure at all
  4. D. Initially downwards
Worked solutionUnofficial

Unofficial keyed letter A. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q4 · Long-run equilibrium

Which one of the following is correct about the economy when it is in long run equilibrium?
  1. A. The economy produces the real GDP which is called the natural real GDP.
  2. B. The short run aggregate demand curve intersects the short run aggregate supply curve.
  3. C. The long run aggregate demand curve intersects the short run aggregate supply curve.
  4. D. Price temporarily deviates from equilibrium even if aggregate demand and aggregate supply remain unchanged.
Worked solutionUnofficial

Unofficial keyed letter A. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q5 · Market failure

Which of the following represents an economic situation where there is an inefficient distribution of goods and services in the free market?
  1. A. Externalities
  2. B. Asymmetric information
  3. C. Market failure
  4. D. Free riding
Worked solutionUnofficial

Unofficial keyed letter C. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q6 · Aggregate demand

What impacts on our aggregate demand do you expect if the level of economic activities in other countries increase?
  1. A. Aggregate demand will increase.
  2. B. Aggregate demand will decrease.
  3. C. Aggregate demand remains unaffected.
  4. D. Aggregate demand first declines and then rises.
Worked solutionUnofficial

Unofficial keyed letter A. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q7 · Change in AD vs quantity demanded

Among the following, which one differentiates change in quantity demanded from change in aggregate demand?
  1. A. As the price level falls, the quantity demanded of real GDP rises, ceteris paribus.
  2. B. It is represented as a movement from one point to another along different demand curve.
  3. C. A positive change in any factors causes a rightward shift in the AD curve.
  4. D. It is a shift in aggregate demand curve from AD1 to AD2 on different curve.
Worked solutionUnofficial

Unofficial keyed letter A. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q8 · Aggregate demand curve

Which of the following is correct about aggregate demand curve?
  1. A. It represents the inverse relationship between the real GDP demanded and consumption expenditure, all else being equal.
  2. B. It is a schedule that represents the amount of real output that sellers collectively desire to sell at each price, ceteris paribus.
  3. C. It shows the inverse relationship between the amount of real output buyers desire to buy at each price, all else being equal.
  4. D. It shows the inverse relationship between the amount of real output sellers desire to sell at each price, all else being equal.
Worked solutionUnofficial

Unofficial keyed letter C. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q9 · Keynesian AS curve

What is the implication of the Keynesian horizontal aggregate supply curve?
  1. A. Firms can supply whatever amount demanded at the existing price because of unemployment.
  2. B. Firms can obtain much labour as they want as long as they pay more.
  3. C. As output level changes, the average cost of production increases.
  4. D. The labour market is in equilibrium with full employment of the labour force.
Worked solutionUnofficial

Unofficial keyed letter A. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q10 · Determinants of supply

Which one of the following is the main factor that affects the amount of output firms are willing to supply?
  1. A. The price of related goods produced by other firms
  2. B. The price they receive for their goods
  3. C. The level of economic activity in other countries
  4. D. The price they anticipate to prevail in the future
Worked solutionUnofficial

Unofficial keyed letter B. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q11 · Causes of market failure

Which of the following is NOT the cause of market failure?
  1. A. Monopoly
  2. B. Externalities
  3. C. Factor immobility
  4. D. Private goods
Worked solutionUnofficial

Unofficial keyed letter D. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q12 · Solutions to market failure

Suppose Sol-ech company receives positive externalities from educated graduates and subsidizes computer education through scholarships, in which of the following group is this type of solution for market failure listed?
  1. A. Voluntary collective action solutions
  2. B. Government-imposed solutions
  3. C. Private market solutions
  4. D. Non-excludability
Worked solutionUnofficial

Unofficial keyed letter C. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q13 · Public goods

Which one of the following is an example of public goods?
  1. A. Houses
  2. B. Food items
  3. C. Wilderness
  4. D. Clothes
Worked solutionUnofficial

Unofficial keyed letter C. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q14 · Public goods characteristics

Which of the following characterize Public goods?
  1. A. Rivalry and excludability
  2. B. Rivalry and non-excludability
  3. C. Non-rivalry and excludability
  4. D. Non-rivalry and non-excludability
Worked solutionUnofficial

Unofficial keyed letter D. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q15 · Public goods / free riding

Which one of the following factor is the reason for market inefficiency in the provision of public goods?
  1. A. Externality
  2. B. Free riding
  3. C. Divisibility
  4. D. High marginal cost
Worked solutionUnofficial

Unofficial keyed letter B. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q16 · Macroeconomic policy

Which of the following macroeconomic policy involves by which the government manipulates its expenditure and revenue side?
  1. A. Monetary policy
  2. B. Fiscal policy
  3. C. Income policy
  4. D. Exchange rate policy
Worked solutionUnofficial

Unofficial keyed letter B. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q17 · Contractionary fiscal policy

Which one of the following instrument is considered by the contractionary fiscal policy when there is an excess demand and inflationary pressure in the economy?
  1. A. A decrease in expenditure
  2. B. Reduction of taxes
  3. C. An increase in expenditure
  4. D. Reduction of revenue
Worked solutionUnofficial

Unofficial keyed letter A. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q18 · Monetary policy

A tight monetary policy is applied in circumstances where there is
  1. A. high inflation.
  2. B. high economic growth.
  3. C. high unemployment.
  4. D. slow economic growth.
Worked solutionUnofficial

Unofficial keyed letter A. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q19 · Income policy

If tight fiscal and monetary policies fail to address the problem of rising price level, what is the alternative policy that the government should consider?
  1. A. Exchange rate policy
  2. B. Trade policy
  3. C. Income policy
  4. D. Interest rate policy
Worked solutionUnofficial

Unofficial keyed letter C. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q20 · Exchange rate regime

Which of the following exchange rate regime is the one that is determined by the government political and economic decisions?
  1. A. Floating exchange rate regime
  2. B. Fixed exchange rate regime
  3. C. Managed floating
  4. D. Crawling peg regime
Worked solutionUnofficial

Unofficial keyed letter B. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q21 · Negative externality

Which one of the following difference is the cause for efficiency loss in the presence of negative externality?
  1. A. Between marginal social benefit and marginal private benefit
  2. B. Between marginal social cost and marginal private cost
  3. C. Between private marginal cost and marginal external cost
  4. D. Between private marginal benefit and marginal external benefit
Worked solutionUnofficial

Unofficial keyed letter B. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q22 · Asymmetric information

When an insurance company provides fringe benefits on the basis of an average rate over a set of employees and guarantees them to participate in the program, then this can be seen as a solution for which one of the following problem?
  1. A. Adverse selection
  2. B. Moral hazard
  3. C. Signalling
  4. D. Screening
Worked solutionUnofficial

Unofficial keyed letter A. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q23 · Monetary policy

Which of the following macroeconomic policies involves management of money supply and interest rate?
  1. A. Fiscal policy
  2. B. Exchange rate policy
  3. C. Monetary policy
  4. D. Income policy
Worked solutionUnofficial

Unofficial keyed letter C. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q24 · Open market operation

Which one of the following is the monetary policy tool that involves the purchase and sale of securities by the nation's central bank?
  1. A. Discount rate
  2. B. Open market operation
  3. C. Required reserve ratio
  4. D. Government spending
Worked solutionUnofficial

Unofficial keyed letter B. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q25 · Fiscal policy tools

One of the following is considered to be fiscal policy tool. Which one is it?
  1. A. Taxation
  2. B. Investment
  3. C. Grants in aid
  4. D. Transfer payments
Worked solutionUnofficial

Unofficial keyed letter A. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q26 · Price ceiling

Which one of the following is correct about price ceilings?
  1. A. It is one of the income policies that keeps a price from declining from a certain limit.
  2. B. It is a maximum price set by law to make basic consumption goods affordable to buyers.
  3. C. It should be set above the equilibrium price to make it more effective.
  4. D. It discourages consumers from buying goods and services since they are now paying higher price.
Worked solutionUnofficial

Unofficial keyed letter B. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q27 · Exchange rate and exports

Suppose the value of an Ethiopian Birr in terms of Kenyan Shilling is getting higher. What is the impact of this on the Ethiopian export to Kenya?
  1. A. It will make the price of Ethiopian goods in the Kenyan market cheaper.
  2. B. It will make the price of Kenyan import in the Ethiopian market expensive.
  3. C. It will increase Ethiopia's export earnings.
  4. D. It will reduce Ethiopia's export earnings.
Worked solutionUnofficial

Unofficial keyed letter D. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q28 · Taxation definition

Which one of the following clearly defines taxation?
  1. A. It is a voluntary payment.
  2. B. It is the only source of government revenue.
  3. C. It is levied without anything in direct return.
  4. D. It encourages inexistence of government.
Worked solutionUnofficial

Unofficial keyed letter C. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q29 · Canons of taxation

Which one of the following explains the tax principles called canon of economy?
  1. A. Everyone should pay tax according to his ability.
  2. B. The amount of tax that we are supposed to pay should be known in advance.
  3. C. Every tax payer should pay the tax in his own convenient time.
  4. D. The cost of tax collection should be as minimum as possible.
Worked solutionUnofficial

Unofficial keyed letter D. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q30 · Good tax system

Which of the following is the implication of one of a good tax system that is referred to as broad based?
  1. A. The system should impose tax on all people without discrimination.
  2. B. The system should ensure that an income inequality is reduced.
  3. C. The system should impose tax on income and properties and commodities.
  4. D. The system should ascertain that national income and living standard is increasing.
Worked solutionUnofficial

Unofficial keyed letter C. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q31 · Fiscal decentralization

Which one of the following is the advantage of fiscal decentralization?
  1. A. Provide scale economies in the collection of taxes
  2. B. Provide scale economies in the provision of public goods
  3. C. Provision of public goods and services desired by local residents.
  4. D. Effective to implement equity measures
Worked solutionUnofficial

Unofficial keyed letter C. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q32 · Fiscal decentralization aims

One of the following is considered to be the aim of fiscal decentralization. Which one is it?
  1. A. Promoting regional partnership
  2. B. Enhancing the role of private sector
  3. C. Encouraging free movement of labour
  4. D. Ensuring equity and efficiency
Worked solutionUnofficial

Unofficial keyed letter D. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q33 · Fiscal equalization

Which one of the following is the reason for the federal government to make fiscal equalization payments to local governments?
  1. A. To enhance intergovernmental competition
  2. B. To discourage fiscal centralization under goods and services provided locally
  3. C. To encourage regional gaps in the provision of basic public services
  4. D. To narrow regional gaps and need for conservation of environmental resources
Worked solutionUnofficial

Unofficial keyed letter D. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q34 · Environmental resources

What is the reason for the growing need for conservation of environmental resources?
  1. A. These resources are underutilized
  2. B. These resources are less costly
  3. C. Their use is less costly; most of these resources are infinite
  4. D. Most of these resources are finite
Worked solutionUnofficial

Unofficial keyed letter D. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q35 · Greenhouse gases

What is the cause for rising greenhouse gases in the earth's atmosphere?
  1. A. An increase in afforestation program
  2. B. A decrease in deforestation due to government policy
  3. C. An increase in hydropower generation
  4. D. The decomposition and disposal of waste
Worked solutionUnofficial

Unofficial keyed letter D. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q36 · Property tax

Among the following direct taxes, which one is a tax that is imposed on the land and buildings?
  1. A. Income tax
  2. B. Property tax
  3. C. Transfer tax
  4. D. Capital gain tax
Worked solutionUnofficial

Unofficial keyed letter B. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q37 · Objectives of taxation

Which one of the following is an objective of taxation?
  1. A. Reducing income disparity
  2. B. Promoting consumption of harmful products
  3. C. Widening regional imbalance
  4. D. Encouraging import
Worked solutionUnofficial

Unofficial keyed letter A. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q38 · Tax incidence

The burden and incidence is imposed by one of the following tax categories on different individuals. Which one is it?
  1. A. Payroll tax
  2. B. Corporate income tax
  3. C. Value added tax
  4. D. Rental income tax
Worked solutionUnofficial

Unofficial keyed letter C. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q39 · Tax administration Ethiopia

In Ethiopia, which one of the following institution is responsible to collect tax on behalf of the government?
  1. A. The Ministry of Finance
  2. B. The Central Bank
  3. C. The Commercial bank
  4. D. The Ministry of Revenue
Worked solutionUnofficial

Unofficial keyed letter D. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q40 · Excise tax

Which one is the type of indirect tax imposed on luxury items and other goods that are demand inelastic when the goods is imported?
  1. A. Value added tax
  2. B. Turnover tax
  3. C. Excise tax
  4. D. Withholding tax
Worked solutionUnofficial

Unofficial keyed letter C. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q41 · Climate change

Which one of the following explains climate change?
  1. A. It refers to an average weather pattern over many years.
  2. B. It is expressed in terms of daily changes in rainfall and humidity.
  3. C. It is a short term changes in the atmosphere conditions.
  4. D. It is the problem of the developed world only.
Worked solutionUnofficial

Unofficial keyed letter A. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q42 · Climate change health impacts

Which one of the following indicates the direct health dimension of the impacts of climate change?
  1. A. Drought
  2. B. Expansion of desertification
  3. C. Water shortages
  4. D. Malaria
Worked solutionUnofficial

Unofficial keyed letter D. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q43 · Greenhouse gas emissions

Which one of the following is said to have more than 20% contribution to harmful greenhouse gas emissions in the developing countries?
  1. A. Burning of fossil fuel
  2. B. Carbon dioxide emission
  3. C. Deforestation
  4. D. Nitric oxide emission
Worked solutionUnofficial

Unofficial keyed letter C. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q45 · Ethiopia climate policy

What action has been taken by the government to address climate change problems in Ethiopia?
  1. A. Implementation of Climate Resilient Green Economy facility
  2. B. Taxes on carbon emission to avoid the problem of climate change
  3. C. Provision of incentives to encourage technological progress
  4. D. Achieving economic growth and development in any possible ways
Worked solutionUnofficial

Unofficial keyed letter A. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q46 · Derg development plan

Which one of the following features characterizes the National development plan during the Derg period?
  1. A. The main development strategy was agriculture led development
  2. B. Private commercial farming was encouraged
  3. C. Land tenancy still existed
  4. D. Cooperatives were encouraged
Worked solutionUnofficial

Unofficial keyed letter D. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q50 · Macroeconomic reform

Which one of the three home-grown economic reforms is mainly concerned with minimizing external loan and rescheduling the existing external public debt?
  1. A. Growth and transformation plan
  2. B. Macroeconomic reform
  3. C. Sectoral reform
  4. D. Structural reform
Worked solutionUnofficial

Unofficial keyed letter B. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q51 · Human development

Which of the following indicates the rank of Ethiopia in its human development despite the effort made to reduce the headcount poverty over the past twenty years?
  1. A. Low human development index
  2. B. Low Gini coefficient
  3. C. Low poverty gap
  4. D. Low headcount ratio
Worked solutionUnofficial

Unofficial keyed letter A. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q52 · Idir and Iqub

Which one of the following is the common feature of both Idir and Iqub?
  1. A. In both, members assist each other on a rotational basis.
  2. B. Both are formal financial institutions.
  3. C. Mutual benefit is the basis among their members.
  4. D. In both, the strings ties among the members encourage defaults.
Worked solutionUnofficial

Unofficial keyed letter C. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q55 · Sectoral productivity

In Ethiopia, which of the following has got particular attention in the past yet characterized as the lowest productive in its performance?
  1. A. Agricultural sector
  2. B. Mining sector
  3. C. Tourism sector
  4. D. Trade sector
Worked solutionUnofficial

Unofficial keyed letter A. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q56 · Gini coefficient

What does the Gini coefficient of 1 represent?
  1. A. Perfect equality of income
  2. B. Moderate inequality of income
  3. C. Moderate equality of income
  4. D. All income owned by one person
Worked solutionUnofficial

Unofficial keyed letter D. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q57 · Poverty reduction

Which one of the following country has made great success in lifting millions of people out of poverty in the past three decades?
  1. A. Brazil
  2. B. Russia
  3. C. China
  4. D. Ethiopia
Worked solutionUnofficial

Unofficial keyed letter C. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q59 · Women and poverty

What is the reason for women to experience extreme poverty in the developing world?
  1. A. Dominance of male-headed households
  2. B. The earning capacity of women is high
  3. C. Their control over their spouses' income is limited
  4. D. Their access to the formal sector employment is high
Worked solutionUnofficial

Unofficial keyed letter C. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q60 · Women poverty measures

Which one of the following is among the measures that should not be considered to alleviate the problem of poverty facing women?
  1. A. Adoption of policy that integrates women in various programs and influences their welfare
  2. B. Increasing female participation in education and other training programs
  3. C. Enhancing female participation in formal sector employment
  4. D. Discouraging women activity in agricultural extension programmes
Worked solutionUnofficial

Unofficial keyed letter D. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q62 · Great Depression lesson

What is the important lesson the world has learnt from the 1930's Great Depression?
  1. A. The self-correcting feature of the market works
  2. B. The additional government spending will stimulate unemployment.
  3. C. The possibility of real GDP to fall below the potential GDP is nil.
  4. D. The importance of active stabilization policies
Worked solutionUnofficial

Unofficial keyed letter D. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q63 · Monetarism

Which one of the following school of thoughts suggested that the Central bank should follow a constant growth rule for some monetary aggregate to address macroeconomic problems?
  1. A. Keynesian
  2. B. Classical
  3. C. Monetarism
  4. D. New Keynesian
Worked solutionUnofficial

Unofficial keyed letter C. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q64 · Components of AD

Which one of the following is the component of aggregate demand that includes private purchases of structures, equipment's and accumulation of inventories?
  1. A. Consumption
  2. B. Investment
  3. C. Government Purchases
  4. D. Net Exports
Worked solutionUnofficial

Unofficial keyed letter B. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q65 · Consumption expenditure

In macroeconomics, the current consumption expenditure is likely to increase due to
  1. A. expectation of lower price in the future
  2. B. increase in income tax
  3. C. increase in interest rate
  4. D. expectation of higher future income
Worked solutionUnofficial

Unofficial keyed letter D. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q66 · Macroeconomics

Which one of the following is a branch of economics that studies about the aggregate behavior of the economy?
  1. A. Microeconomics
  2. B. Macroeconomics
  3. C. International economics
  4. D. Development economics
Worked solutionUnofficial

Unofficial keyed letter B. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q67 · Macroeconomic issue

Among the following, which one is a macroeconomic issue?
  1. A. Actions of an individual agent within an economy
  2. B. The economic activities of a consumer, a producer or industry
  3. C. Resource allocation or price determination as central problem
  4. D. Structure and performance of the economy as a whole
Worked solutionUnofficial

Unofficial keyed letter D. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q68 · GDP income approach

Which of the following is used to calculate GDP by adding all the incomes accruing to all factors of production used in producing the national output?
  1. A. Product approach
  2. B. Expenditure approach
  3. C. Income approach
  4. D. Value added approach
Worked solutionUnofficial

Unofficial keyed letter C. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q69 · Business cycle

Which one of the following characterizes period of expansion in the business cycle?
  1. A. Unemployment rises at this stage.
  2. B. The pressure on prices is upward.
  3. C. Economic growth slows down.
  4. D. Full employment occurs at this stage.
Worked solutionUnofficial

Unofficial keyed letter B. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q70 · Current account

In which of the following is the market values of country's exports and imports of goods and services are shown?
  1. A. Capital account
  2. B. Terms of trade
  3. C. Current account
  4. D. Budget surplus
Worked solutionUnofficial

Unofficial keyed letter C. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q71 · Tax avoidance

Which one of the following is the problem of taxation in Ethiopia that is considered to be legal from the point of view of law but poses problems on the tax administration?
  1. A. Tax evasion
  2. B. Tax avoidance
  3. C. Tax compliance
  4. D. Unreported transaction
Worked solutionUnofficial

Unofficial keyed letter B. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q72 · Tax collection solutions

What remedial solutions do you think should be put in place to alleviate tax collection problem in Ethiopia?
  1. A. Provide client oriented service to tax payers
  2. B. Lowering the tax rate far below the current rate
  3. C. Following broad based tax system
  4. D. Adopting expansionary fiscal policy
Worked solutionUnofficial

Unofficial keyed letter A. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q73 · Poverty and wellbeing

The World Bank defines poverty as the pronounced deprivation in wellbeing. Which one of the following is NOT the implication of wellbeing?
  1. A. The poor are those who do not have any control over commodities.
  2. B. It relates poverty with some specific types of consumption.
  3. C. It relates to lack of key capability to function in the society.
  4. D. Poverty is only about the lack of one thing, food.
Worked solutionUnofficial

Unofficial keyed letter D. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q74 · Poverty measures

Which one of the following is a uni-dimensional measure of poverty that helps to understand the degree of income-inequality among the poor?
  1. A. Total poverty gap
  2. B. The Foster - Greer - Thorbecke index
  3. C. Multidimensional poverty index
  4. D. Poverty headcount ratio
Worked solutionUnofficial

Unofficial keyed letter B. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q75 · Functional distribution

One of the following shows the proportion of total national income that factors of production receives, which one is it?
  1. A. Personal distribution of income
  2. B. Size distribution of income
  3. C. Functional distribution of income
  4. D. Income distribution
Worked solutionUnofficial

Unofficial keyed letter C. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q77 · Real wage

Suppose that the nominal wage that the firm has agreed to pay for worker is birr 60 per hour. What is the change in the real wage rate if the price level as measured by the price index increases from 2.50 to 3.00?
  1. A. The real wage rises by 4 birr.
  2. B. The real wage declined by 4 birr.
  3. C. The real wage declined by 6 birr.
  4. D. The real wage rises by 6 birr.
Worked solutionUnofficial

Unofficial keyed letter B. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q79 · Unemployment rate

Suppose in a given economy the population who are willing and able to work is 5 million and out of this the total number of employed are 2 million. What is the unemployment rate?
  1. A. 40%
  2. B. 70%
  3. C. 30%
  4. D. 60%
Worked solutionUnofficial

Unofficial keyed letter D. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Q80 · Labour force participation

A census that was conducted in a particular economy shows that the total adult population is 27 million and those who are willing and able to work is 6 million. What is the labour force participation rate in this economy?
  1. A. 12.18%
  2. B. 15.73%
  3. C. 22.22%
  4. D. 25.37%
Worked solutionUnofficial

Unofficial keyed letter C. A full worked solution is not published for this item yet.

Unofficial — solved by Abrari, not an official EAES key.

Practice this subject

Frequently asked questions

Are these official EUEE past papers?
No. Abrari publishes unofficial practice reconstructed from the study bank for this 2016 E.C. Economics paper. It is not an official EAES or Ministry paper and does not use government logos.
Are the answers official?
No. Letters and worked solutions are unofficial Abrari keys. Verified write-ups are labelled Unofficial. Do not treat them as an official marking scheme.
Is Abrari part of MoE, EAES, MoLS, or OCACC?
No. Abrari is an independent study aid. It is not affiliated with, endorsed by, or an official product of those agencies.
Do I need to pay to practice?
No. The questions on this page are free to read and try. There is no payment step.

Try 5 from this paper