What do the Grade 10 Economics cards cover?

31 cards across 8 chapters of the national textbook: Theory of Consumer Behaviour, Theories of Demand and Supply, Theories of Production and Cost, Market Structures, Banking and Finance, Economic Growth, The Ethiopian Economy and Business Startups and Innovation. You can take any chapter one card at a time on the page itself.

Is there a national exam in Grade 10?

No. Ethiopia sets national exams in Grade 6, Grade 8 and Grade 12 only. These cards are for your school's own exams, and for the national exam that comes a few years later.

Where do these cards come from?

They are drafted from Grade 10 Economics, the Ministry of Education textbook for this grade. A second pass that cannot see the chapter then re-derives every formula, constant and table row, and anything it cannot confirm is held back instead of published.

Yes. Every card here is free to read and the printable sheet is free to download. Neither needs an account.

When was this last checked?

30 August 2026. Cards arrive chapter by chapter, and the line under each one says when that card was last read through.

Free short notes and revision cards

Grade 10 Economics

Grade 10 Economics on Temari has 31 revision cards, arranged by the chapters of the Ethiopian national curriculum. Every card says when the rule applies, what each symbol in it stands for, and the mistake students most often make with it. They are free to read and need no account.

31
Cards: 8
Chapters: 11
Formulas: 14
Reference tables: Grade 10 Economics
Textbook: Free
Price: 30 August 2026
Last checked

Everything31Reference table14Formula11Common mistake5Rule1

Theory of Consumer Behaviour

Marginal UtilityFormula

MU = \frac{\Delta TU}{\Delta Q}

MU = \frac{\Delta TU}{\Delta Q}

$MU$: marginal utility $utils$
$\Delta TU$: change in total utility $utils$
$\Delta Q$: change in quantity consumed $units$

When you use it

Use this formula to calculate the additional satisfaction gained from consuming one more unit of a commodity.

Watch out

Do not divide total utility by total quantity. Marginal utility is the change in total utility divided by the change in quantity.

Drafted from Grade 10 Economics, pages 1-16, then checked twice before it went up

Relationship Between TU and MUReference tableMU > 0 · MU = 0 · MU < 0

Marginal Utility	Total Utility	Consumer Implication
$MU > 0$	Increasing at a decreasing rate	Satisfaction increases with more units
$MU = 0$	Maximum (Saturation point)	Maximum satisfaction is reached
$MU < 0$	Decreasing	Dissatisfaction occurs with extra units

When you use it

Use this reference to identify saturation points and describe how total utility behaves as marginal utility changes.

Watch out

Total utility is at its maximum when marginal utility equals zero, not when marginal utility is at its maximum.

Drafted from Grade 10 Economics, pages 1-16, then checked twice before it went up

Theories of Demand and Supply

Arc Price Elasticity of DemandFormula

E_d = \frac{Q_2 - Q_1}{P_2 - P_1} \cdot \frac{P_1 + P_2}{Q_1 + Q_2}

E_d = \frac{Q_2 - Q_1}{P_2 - P_1} \cdot \frac{P_1 + P_2}{Q_1 + Q_2}

$E_d$: Price elasticity of demand $\text{dimensionless}$
$Q_1$: Initial quantity demanded $\text{units}$
$Q_2$: New quantity demanded $\text{units}$
$P_1$: Initial price $\text{Birr}$
$P_2$: New price $\text{Birr}$

When you use it

Use this formula to calculate the price elasticity of demand over a price range between two points on a demand curve.

Watch out

Always use the sum of quantities and prices in the second term, not just the base values.

Drafted from Grade 10 Economics, pages 17-48, then checked twice before it went up

Change in Quantity Demanded versus Change in DemandCommon mistake

When you use it

Use when distinguishing between a movement along a single curve and a shift of the entire curve.

Watch out

A change in the good's own price causes a movement along the curve (change in quantity demanded). Only non-price determinants (income, tastes, related goods) shift the entire curve (change in demand).

Drafted from Grade 10 Economics, pages 17-48, then checked twice before it went up

Cross-Price Elasticity InterpretationReference tableE_xy > 0 · E_xy < 0 · E_xy = 0

Cross Elasticity	Relationship	Consumer Behaviour
$E_{xy} > 0$	Substitute goods	Price of Y rises, Demand for X increases
$E_{xy} < 0$	Complementary goods	Price of Y rises, Demand for X decreases
$E_{xy} = 0$	Independent goods	Price of Y has no effect on Demand for X

When you use it

Use this table to identify whether two goods are substitutes, complements, or independent based on the sign of cross-price elasticity.

Watch out

Do not take the absolute value for cross elasticity. The positive or negative sign determines the relationship between the goods.

Drafted from Grade 10 Economics, pages 17-48, then checked twice before it went up

Degrees of Price Elasticity of DemandReference table|E_d| > 1 · |E_d| = 1 · 0 < |E_d| < 1 · +2

Elasticity Value	Classification	Meaning
$\|E_d\| > 1$	Elastic	% change in Quantity demanded > % change in Price
$\|E_d\| = 1$	Unitary elastic	% change in Quantity demanded = % change in Price
$0 < \|E_d\| < 1$	Inelastic	% change in Quantity demanded < % change in Price
$\|E_d\| = 0$	Perfectly inelastic	Quantity demanded does not change when Price changes
$\|E_d\| = \infty$	Perfectly elastic	Infinite change in Quantity demanded at a given Price

When you use it

Use this reference to classify and interpret calculated numerical values of price elasticity of demand.

Drafted from Grade 10 Economics, pages 17-48, then checked twice before it went up

Market Equilibrium ConditionFormula

Q_d = Q_s

Q_d = Q_s

$Q_d$: Quantity demanded $\text{units}$
$Q_s$: Quantity supplied $\text{units}$

When you use it

Use this condition to find the market clearing price and equilibrium quantity by equating demand and supply functions.

Watch out

If market price is above equilibrium price, excess supply (surplus) occurs. If below, excess demand (shortage) occurs.

Drafted from Grade 10 Economics, pages 17-48, then checked twice before it went up

Theories of Production and Cost

Fixed Costs in the Long RunCommon mistake

When you use it

Identify errors when analyzing costs and scale across different time horizons.

Watch out

Do not include fixed costs in the long run. All inputs and costs are variable in the long run, so TFC equals zero and TC equals TVC.

Drafted from Grade 10 Economics, pages 49-67, then checked twice before it went up

Product and Cost Curves RelationshipReference tableMP_L rises · MP_L is maximum · MP_L falls · +3

Product Curve Condition	Cost Curve Mirror	Cost Curve Condition
$MP_L$ rises	Marginal Cost ( $MC$ )	$MC$ falls
$MP_L$ is maximum	Marginal Cost ( $MC$ )	$MC$ is minimum
$MP_L$ falls	Marginal Cost ( $MC$ )	$MC$ rises
$AP_L$ rises	Average Variable Cost ( $AVC$ )	$AVC$ falls
$AP_L$ is maximum	Average Variable Cost ( $AVC$ )	$AVC$ is minimum
$AP_L$ falls	Average Variable Cost ( $AVC$ )	$AVC$ rises

When you use it

Use this reference to map production efficiency directly to per-unit cost behavior.

Watch out

The MC curve cuts both the AVC and ATC curves at their lowest points from below.

Drafted from Grade 10 Economics, pages 49-67, then checked twice before it went up

Short Run Cost MeasuresFormula

TC = TFC + TVC, \quad ATC = AFC + AVC = \frac{TC}{Q}, \quad MC = \frac{\Delta TC}{\Delta Q} = \frac{\Delta TVC}{\Delta Q}

TC = TFC + TVC, \quad ATC = AFC + AVC = \frac{TC}{Q}, \quad MC = \frac{\Delta TC}{\Delta Q} = \frac{\Delta TVC}{\Delta Q}

$TC$: Total Cost $\text{Birr}$
$TFC$: Total Fixed Cost $\text{Birr}$
$TVC$: Total Variable Cost $\text{Birr}$
$ATC$: Average Total Cost $\text{Birr per unit}$
$AFC$: Average Fixed Cost $\text{Birr per unit}$
$AVC$: Average Variable Cost $\text{Birr per unit}$
$MC$: Marginal Cost $\text{Birr per unit}$
$Q$: Quantity of output $\text{units}$
$\Delta TC$: Change in Total Cost $\text{Birr}$
$\Delta TVC$: Change in Total Variable Cost $\text{Birr}$
$\Delta Q$: Change in Output $\text{units}$

When you use it

Use these relations to compute total, average, and marginal costs of production in the short run.

Watch out

Marginal cost equals the change in TVC divided by change in Q because change in TFC is always zero in the short run.

Drafted from Grade 10 Economics, pages 49-67, then checked twice before it went up

Short Run Productivity FormulasFormula

AP_L = \frac{TP}{L}, \quad MP_L = \frac{\Delta TP}{\Delta L}

AP_L = \frac{TP}{L}, \quad MP_L = \frac{\Delta TP}{\Delta L}

$AP_L$: Average Product of Labor $\text{units per worker}$
$MP_L$: Marginal Product of Labor $\text{units per worker}$
$TP$: Total Product $\text{units}$
$L$: Labor input $\text{workers}$
$\Delta TP$: Change in Total Product $\text{units}$
$\Delta L$: Change in Labor input $\text{workers}$

When you use it

Use these equations to calculate average output per worker and the additional output generated by adding one more worker.

Watch out

Marginal product is the slope of total product. It equals average product only at the maximum point of the average product curve.

Drafted from Grade 10 Economics, pages 49-67, then checked twice before it went up

The Three Stages of ProductionReference tableStage I · Stage II · Stage III

Stage	Total Product (TP)	Marginal Product (MPL)	Average Product (APL)
Stage I	Increases at increasing then decreasing rate	Positive, reaches maximum, then falls	Increases to its maximum
Stage II	Increases at decreasing rate to maximum	Positive and falling to zero	Decreases, but remains positive
Stage III	Decreases	Negative	Decreases, remains positive

When you use it

Consult this table to identify production stages and behavior of product curves under diminishing marginal returns.

Watch out

A rational firm always operates in Stage II. In Stage III, marginal product is negative, meaning extra workers reduce total output.

Drafted from Grade 10 Economics, pages 49-67, then checked twice before it went up

Market Structures

Comparison of Market StructuresReference tablePerfect Competition · Pure Monopoly · Monopolistic Competition · +1

Market Structure	Number of Sellers	Nature of Product	Entry and Exit
Perfect Competition	Large number	Homogeneous	Free
Pure Monopoly	Single seller	No close substitutes	Restricted
Monopolistic Competition	Relatively large	Differentiated	Free
Oligopoly	Few dominant	Homogeneous or differentiated	Restricted

When you use it

Use this table to classify and compare market models based on firm numbers, product differentiation, and entry barriers.

Watch out

Monopolistic competition has many sellers and free entry like perfect competition, but firms sell differentiated rather than homogeneous products.

Drafted from Grade 10 Economics, page 68 onwards, then checked twice before it went up

Competitive Firm Revenue EqualityRule

When you use it

Use this rule to determine the relationship between price, demand, average revenue, and marginal revenue for a price-taking firm.

Watch out

The horizontal line where AR = MR = P applies only to the individual competitive firm, not to the market demand curve.

Drafted from Grade 10 Economics, page 68 onwards, then checked twice before it went up

Banking and Finance

Classification of Financial InstitutionsReference tableDepositary Institutions · Contractual Institutions · Investment Institutes

Institution Type	Primary Role	Examples
Depositary Institutions	Accept and manage deposits and make loans	Commercial banks, Credit unions
Contractual Institutions	Pool long term savings through legal contracts	Insurance companies, Pension funds
Investment Institutes	Facilitate trading and underwriting of securities	Investment banks, Brokerage firms, Underwriters

When you use it

Use this to categorize financial institutions by their operating mechanism and service type.

Watch out

Insurance companies are Contractual Institutions, not Depositary Institutions, because funds are mobilized via policy contracts rather than standard savings deposits.

Drafted from Grade 10 Economics, pages 68-113, then checked twice before it went up

Components of Financial MarketsReference tableMoney market · Capital market

Market Sector	Original Maturity	Primary Financial Instruments
Money market	1 year or less	Treasury bills, Commercial papers, CDs, Repurchase agreements, Bankers acceptances
Capital market	Greater than 1 year or perpetual	Equity (Common and Preferred stock), Debt obligations (Bank loans, Notes, Bonds)

When you use it

Use this to classify financial markets and their securities based on the maturity period of the instruments.

Watch out

Do not classify Treasury bills under Capital market. Instruments with maturity of one year or less strictly belong to the Money market.

Drafted from Grade 10 Economics, pages 68-113, then checked twice before it went up

Economic Growth

Economic Growth RateFormula

g = \frac{\text{RGDP}_t - \text{RGDP}_{t-1}}{\text{RGDP}_{t-1}} \times 100

g = \frac{\text{RGDP}_t - \text{RGDP}_{t-1}}{\text{RGDP}_{t-1}} \times 100

$g$: Economic growth rate of Real Gross Domestic Product $%$
$\text{RGDP}_t$: Real GDP in the current year t $USD$
$\text{RGDP}_{t-1}$: Real GDP in the previous year t-1 $USD$

When you use it

Use this formula to calculate the percentage change in real national output from one year to the next.

Watch out

Always divide by the base year real GDP (t-1), not the current year real GDP (t).

Drafted from Grade 10 Economics, pages 114-133, then checked twice before it went up

Economic Growth vs Economic DevelopmentCommon mistake

When you use it

Use when distinguishing between output expansion and broad institutional transformation.

Watch out

Do not treat them as synonyms: growth is merely a necessary condition for development, not a sufficient condition.

Drafted from Grade 10 Economics, pages 114-133, then checked twice before it went up

Per Capita Real GDPFormula

\text{Per Capita RGDP}_t = \frac{\text{RGDP}_t}{\text{Population}_t}

\text{Per Capita RGDP}_t = \frac{\text{RGDP}_t}{\text{Population}_t}

$\text{Per Capita RGDP}_t$: Real GDP per capita in year t $\text{USD/person}$
$\text{RGDP}_t$: Total Real GDP in year t $USD$
$\text{Population}_t$: Total population in year t $\text{person}$

When you use it

Use this formula to calculate average economic output per person, which indicates the standard of living.

Watch out

Per capita GDP is an average and does not reflect income inequality or non-market activities.

Drafted from Grade 10 Economics, pages 114-133, then checked twice before it went up

Phases of the Business CycleReference tableBoom / Peak · Recession · Depression / Slump / Trough · +1

Phase	Economic Characteristics
Boom / Peak	Rising demand, prices, investment, employment, and incomes.
Recession	Cuts in investment and employment; falling incomes, demand, and prices.
Depression / Slump / Trough	Lowest business confidence; investment, output, and prices hit bottom.
Recovery / Expansion	Sustained upward movement in investment, output, employment, and prices.

When you use it

Use this to describe the four sequential stages of macroeconomic fluctuations.

Watch out

Business cycle fluctuations are irregular and unpredictable, not regular or evenly timed cycles.

Drafted from Grade 10 Economics, pages 114-133, then checked twice before it went up

World Bank Country Income ClassificationReference tableLow-income countries (LICs) · Lower middle-income countries (LMCs) · Upper middle-income countries (UMCs) · +1

Income Category	GNI Per Capita Range (2008 USD)
Low-income countries (LICs)	$<=\$975$
Lower middle-income countries (LMCs)	$\$976 - \$3{,}855$
Upper middle-income countries (UMCs)	$\$3{,}856 - \$11{,}906$
High-income countries	$>=\$11{,}907$

When you use it

Use this classification to categorize economies based on their gross national income per capita levels.

Watch out

Do not confuse lower middle-income cutoff ( $976 to$ 3,855) with upper middle-income cutoff ( $3,856 to$ 11,906).

Drafted from Grade 10 Economics, pages 114-133, then checked twice before it went up

The Ethiopian Economy

Farming Systems in EthiopiaReference tableSmallholder farming · Pastoral system · Commercial farming

Farming System	Coverage and Share	Distinct Features
Smallholder farming	> 90% agricultural output, 95% crop area	Mixed farming, over 86% cultivate under 2 hectares
Pastoral system	40% land area, 5.5 million people	Arid lowlands, livestock reliant, nomadic movement
Commercial farming	< 10% agricultural output, 5% crop area	Mechanized or irrigated, large state or private farms

When you use it

Use to distinguish the three main categories of agricultural production systems in Ethiopia.

Watch out

Smallholder farming dominates output and land use, while pastoral farming covers 40% of the land area in arid lowlands.

Drafted from Grade 10 Economics, pages 134-160, then checked twice before it went up

GDP DeflatorFormula

\text{GDP Deflator} = \frac{\text{Nominal GDP}}{\text{Real GDP}} \times 100

\text{GDP Deflator} = \frac{\text{Nominal GDP}}{\text{Real GDP}} \times 100

$\text{GDP Deflator}$: Measure of the price level relative to the base year $dimensionless$
$\text{Nominal GDP}$: Output valued at current year prices $ETB$
$\text{Real GDP}$: Output valued at constant base year prices $ETB$

When you use it

Use this formula to measure the average price level and isolate price changes from output changes.

Watch out

In the designated base year, Nominal GDP equals Real GDP, so the GDP Deflator is always exactly 100.

Drafted from Grade 10 Economics, pages 134-160, then checked twice before it went up

GDP Expenditure ComponentsFormula

Y = C + I + G + NX

Y = C + I + G + NX

$Y$: Gross Domestic Product (GDP) $ETB$
$C$: Consumption expenditure by households $ETB$
$I$: Investment in capital goods, inventories, and structures $ETB$
$G$: Government Purchases of goods and services $ETB$
$NX$: Net Exports (Exports minus Imports) $ETB$

When you use it

Use this identity to calculate total Gross Domestic Product from the expenditure approach.

Watch out

Net Exports equals Exports minus Imports. Subtract imports because they are already included inside domestic spending components.

Drafted from Grade 10 Economics, pages 134-160, then checked twice before it went up

Inflation Rate from GDP DeflatorFormula

\text{Inflation Rate} = \frac{\text{Deflator}_2 - \text{Deflator}_1}{\text{Deflator}_1} \times 100

\text{Inflation Rate} = \frac{\text{Deflator}_2 - \text{Deflator}_1}{\text{Deflator}_1} \times 100

$\text{Inflation Rate}$: Percentage change in the price level $\%$
$\text{Deflator}_2$: GDP Deflator in the current year $dimensionless$
$\text{Deflator}_1$: GDP Deflator in the preceding year $dimensionless$

When you use it

Use this equation to compute the annual inflation rate between two consecutive years using the GDP deflator.

Watch out

Always divide by the initial year deflator, not the current year deflator.

Drafted from Grade 10 Economics, pages 134-160, then checked twice before it went up

Misclassifying Transfer Payments and HousingCommon mistake

When you use it

Use when sorting national expenditures into Consumption, Investment, and Government Purchases.

Watch out

Transfer payments (like pensions or unemployment aid) are excluded from Government Purchases because they lack current production. New residential housing is classified under Investment, not Consumption.

Drafted from Grade 10 Economics, pages 134-160, then checked twice before it went up

Business Startups and Innovation

Benefit Cost Ratio FormulaFormula

\text{BCR} = \frac{B}{C}

\text{BCR} = \frac{B}{C}

$\text{BCR}$: benefit cost ratio $dimensionless$
$B$: total monetary value of benefits $ETB$
$C$: total monetary value of costs $ETB$

When you use it

Use to calculate economic feasibility during cost benefit analysis where a ratio greater than 1 indicates a viable decision.

Watch out

Ensure both benefits and costs include all tangible, intangible, and opportunity values before computing the ratio.

Drafted from Grade 10 Economics, page 161 onwards, then checked twice before it went up

Feasibility Study vs Business PlanReference tableFeasibility Study · Business Plan

Document	Main Focus	Timing	Relative Cost
Feasibility Study	Tests viability and proof of concept	Before committing to a business plan	Less than 20% of business plan cost
Business Plan	Detailed operational roadmap and execution	After project is proven feasible	Higher depth and cost

When you use it

Use to distinguish the preliminary validation of a business idea from the detailed execution plan.

Watch out

Never commission a business plan before completing a feasibility study first, as the feasibility study proves whether the idea is worth pursuing.

Drafted from Grade 10 Economics, page 161 onwards, then checked twice before it went up

Forms of Business OrganizationsReference tableSole Proprietorship · Partnership · Corporation

Form	Ownership	Liability	Legal Entity
Sole Proprietorship	1 individual	Unlimited	No separate entity
Partnership	2 to 20 persons (10 for banking)	Unlimited (General)	No separate entity
Corporation	Shareholders	Limited	Separate legal personality

When you use it

Use when comparing legal structures, ownership limits, and personal liability across business organizations.

Watch out

In a sole proprietorship and general partnership, liability is unlimited, meaning personal property can be seized to pay business debts.

Drafted from Grade 10 Economics, page 161 onwards, then checked twice before it went up

Startup Growth vs Immediate ProfitabilityCommon mistake

When you use it

Use when answering questions contrasting startups against traditional small businesses.

Watch out

Do not assume startups generate quick profits in the short run. Startups prioritize top end revenue, rapid growth, and market share, and may take years to record their first profit.

Drafted from Grade 10 Economics, page 161 onwards, then checked twice before it went up

Types of InnovationReference tableProduct Innovation · Process Innovation · Marketing Innovation · +2

Innovation Type	Core Focus
Product Innovation	New or improved goods or services
Process Innovation	New production, delivery, or operational methods
Marketing Innovation	Changes in product design, packaging, pricing, or promotion
Organizational Innovation	New business practices, workplace setup, or external relations
Eco-Innovation	Reducing environmental impacts and meeting sustainability goals

When you use it

Use when identifying or classifying business innovations based on the Oslo Manual categories.

Watch out

Routine seasonal changes, regular updates, or minor bug fixes do not qualify as product innovations.

Drafted from Grade 10 Economics, page 161 onwards, then checked twice before it went up

The same subject in other years

An exam paper keeps asking for what the year below taught. Those cards are here too.

Your other Grade 10 subjects

Everything else in this year that has cards so far.

Questions students ask

What do the Grade 10 Economics cards cover?: 31 cards across 8 chapters of the national textbook: Theory of Consumer Behaviour, Theories of Demand and Supply, Theories of Production and Cost, Market Structures, Banking and Finance, Economic Growth, The Ethiopian Economy and Business Startups and Innovation. You can take any chapter one card at a time on the page itself.
Is there a national exam in Grade 10?: No. Ethiopia sets national exams in Grade 6, Grade 8 and Grade 12 only. These cards are for your school's own exams, and for the national exam that comes a few years later.
Where do these cards come from?: They are drafted from Grade 10 Economics, the Ministry of Education textbook for this grade. A second pass that cannot see the chapter then re-derives every formula, constant and table row, and anything it cannot confirm is held back instead of published.
Is this free?: Yes. Every card here is free to read and the printable sheet is free to download. Neither needs an account.
When was this last checked?: 30 August 2026. Cards arrive chapter by chapter, and the line under each one says when that card was last read through.

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