የኢኮኖሚክስ መግቢያ ፈተና፣ 2011 ዓ.ም. (2019)

Aid is named after how many parties are on each side. Assistance that passes from one friendly government straight to another government is bilateral assistance, because only two states are involved.

Multilateral assistance is different. It comes from an institution that many countries fund together, such as the World Bank, the IMF or the African Development Bank, so option A fails even though the money may still reach the same treasury.

Textbook: Economics Grade 11, Unit 5 Trade and Finance.

Nominal GDP values this year's output at this year's prices, so it is measured in current market prices. Real GDP values the same output at the prices of a fixed base year, which is why it is called GDP at constant prices.

Option D is the common trap. Real GDP cannot rise just because prices rise, since the base year prices are held fixed. Only more physical output can raise real GDP.

Textbook: Economics Grade 10, Unit 7 The Ethiopian Economy, section 7.2 Real GDP versus Nominal GDP.

In the short run, costs split into two groups. Fixed costs stay the same whatever the firm produces, and variable costs rise as output rises. Wages paid to workers hired for production are the standard variable cost, so labour cost is the one that grows with output.

Overhead cost is another name for fixed cost, and rent of land and the cost of the factory building are fixed by contract for the short run. The firm pays them even on a day it produces nothing, so none of them can be the answer.

Textbook: Economics Grade 9, Unit 5 Introduction to Production and Cost, section 5.3 Cost of Production.

Capitalism is defined by who owns the means of production. Under a capitalist system, land, capital and firms are owned mainly by private individuals, and they decide what to produce by following profit and prices.

The other three options describe outcomes that capitalism does not promise. Competition can waste resources, growth comes in booms and slumps, and income is shared unequally, so B, C and D are not features of the system.

Textbook: Economics Grade 9, Unit 2 The Basic Economic Problems and Economic Systems, section 2.3 Economic Systems.

Modern industry started late in Ethiopia and started small. The first manufacturing units were small scale establishments making simple consumer goods such as flour, edible oil, soap, leather items, wood and furniture, mostly for the local market.

Option D is wrong on a separate point. The Derg period followed an inward looking, import substitution line under state ownership, not export promotion.

Textbook: Economics Grade 10, Unit 7 The Ethiopian Economy, section 7.4 The Industrial Sector in the Ethiopian Economy.

Expansionary monetary policy means the central bank wants more money circulating and cheaper credit. Cutting the cash reserve ratio leaves banks holding less of each deposit in reserve, so they can lend more and the money supply grows.

Raising the reserve ratio, raising the bank rate and cutting the money supply all pull money out of the economy, so A, B and C are contractionary measures.

Textbook: Economics Grade 12, Unit 4 Macroeconomic Policy Instruments, section 4.3 Monetary Policy.