What do the Grade 11 Economics cards cover?

31 cards across 7 chapters of the national textbook: Theory of consumer behavior and demand introduction, Market structure and the decision of firms introduction, National income accounting introduction, Consumption, saving and investment introduction, Trade and finance introduction, Economic development introduction and Main sectors, sectorial policies and strategies of Ethiopia. You can take any chapter one card at a time on the page itself.

Is there a national exam in Grade 11?

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 11 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 11 Economics

Grade 11 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: 7
Chapters: 17
Formulas: 9
Reference tables: Grade 11 Economics
Textbook: Free
Price: 30 August 2026
Last checked

Everything31Formula17Reference table9Common mistake4Rule1

Theory of consumer behavior and demand introduction

Budget Line EquationFormula

M = P_X X + P_Y Y

M = P_X X + P_Y Y

$M$: Consumer money income $\text{Birr}$
$P_X$: Price of good X $\text{Birr}$
$X$: Quantity of good X $\text{units}$
$P_Y$: Price of good Y $\text{Birr}$
$Y$: Quantity of good Y $\text{units}$

When you use it

Use to set up the boundary of all attainable commodity bundles when the consumer spends all income.

Watch out

Income changes shift the line parallel without changing slope, but a single price change rotates the line by altering its slope.

Drafted from Grade 11 Economics, pages 2-34, then checked twice before it went up

Cardinal Utility Consumer OptimumFormula

\frac{MU_X}{P_X} = \frac{MU_Y}{P_Y}

\frac{MU_X}{P_X} = \frac{MU_Y}{P_Y}

$MU_X$: Marginal utility of good X $\text{utils per unit}$
$MU_Y$: Marginal utility of good Y $\text{utils per unit}$
$P_X$: Price of good X $\text{Birr}$
$P_Y$: Price of good Y $\text{Birr}$

When you use it

Use when finding the utility maximizing bundle under cardinal utility theory where satisfaction is measured in utils.

Watch out

Equating the marginal utility per Birr across goods is not enough by itself. The entire money income must also be spent.

Drafted from Grade 11 Economics, pages 2-34, then checked twice before it went up

Marginal Rate of SubstitutionFormula

MRS_{X,Y} = \frac{MU_X}{MU_Y}

MRS_{X,Y} = \frac{MU_X}{MU_Y}

$MRS_{X,Y}$: Marginal rate of substitution of good X for good Y $\text{units of Y per unit of X}$
$MU_X$: Marginal utility of good X $\text{utils per unit}$
$MU_Y$: Marginal utility of good Y $\text{utils per unit}$

When you use it

Use to determine the rate at which a consumer gives up units of good Y to gain one more unit of good X while maintaining the same utility.

Watch out

In the derivative ratio, change in Y is in the numerator, but in the marginal utility ratio, MU_X is in the numerator.

Drafted from Grade 11 Economics, pages 2-34, then checked twice before it went up

Ordinal Utility Consumer OptimumFormula

MRS_{X,Y} = \frac{P_X}{P_Y}

MRS_{X,Y} = \frac{P_X}{P_Y}

$MRS_{X,Y}$: Marginal rate of substitution $\text{units of Y per unit of X}$
$P_X$: Price of good X $\text{Birr}$
$P_Y$: Price of good Y $\text{Birr}$

When you use it

Use to determine consumer equilibrium under ordinal utility where the budget line is tangent to the highest indifference curve.

Watch out

This tangency condition holds for standard convex indifference curves and requires income to be fully exhausted.

Drafted from Grade 11 Economics, pages 2-34, then checked twice before it went up

Types of Indifference CurvesReference tableStandard Goods · Perfect Substitutes · Perfect Complements

Good Type	Indifference Curve Shape	MRS Behavior	Utility Function
Standard Goods	Convex to origin	Diminishing	$U = f(X, Y)$
Perfect Substitutes	Downward sloping straight line	Constant	$U = aX + bY$
Perfect Complements	L shaped right angle	Zero	$U = \min(aX, bY)$

When you use it

Use to identify curve geometry, substitutability, and algebraic form based on the relationship between two goods.

Watch out

Perfect complements have an MRS of zero because additional units of one good alone yield no extra utility.

Drafted from Grade 11 Economics, pages 2-34, then checked twice before it went up

Market structure and the decision of firms introduction

Degrees of Price DiscriminationReference tableFirst degree · Second degree · Third degree

Degree	Pricing Mechanism	Example
First degree	Charges maximum reservation price to each consumer	Doctor charging by patient wealth
Second degree	Prices differ by quantity bought or quality tier	Bulk purchase discounts, airline seat classes
Third degree	Market segmentation by consumer group elasticity	Discounts for students and senior citizens

When you use it

Use when identifying how a monopolist charges different prices to capture consumer surplus.

Watch out

In first degree price discrimination, consumer surplus becomes zero and there is no deadweight loss because the monopolist captures all surplus.

Drafted from Grade 11 Economics, pages 35-69, then checked twice before it went up

Profit Maximization RuleFormula

MR = MC

MR = MC

$MR$: Marginal revenue $\text{ETB}$
$MC$: Marginal cost $\text{ETB}$

When you use it

Use to find the optimal output level for any profit-maximizing firm in competitive, monopoly, or monopolistic markets.

Watch out

The first condition MR = MC is not sufficient. The marginal cost curve must cut the marginal revenue curve from below, meaning the slope of MC must be steeper than the slope of MR.

Drafted from Grade 11 Economics, pages 35-69, then checked twice before it went up

Short Run Output and Shutdown DecisionReference tableP > ATC · P = ATC · AVC P < ATC · +1

Price Condition	Economic Outcome	Short-Run Decision
$P > ATC$	Supernormal profit	Continue production
$P = ATC$	Zero profit (Break-even)	Continue production
$AVC \le P < ATC$	Economic loss	Continue production to cover fixed cost
$P < AVC$	Severe loss exceeding fixed cost	Shut down immediately

When you use it

Use to determine whether a competitive firm should continue producing at a loss or shut down in the short run.

Watch out

The shutdown point occurs at minimum AVC, not at minimum ATC. If price is above AVC, producing minimizes losses compared to shutting down.

Drafted from Grade 11 Economics, pages 35-69, then checked twice before it went up

Shutting Down When Incurring Short Run LossesCommon mistake

When you use it

Use when evaluating whether a firm operating at a loss should cease operations immediately in the short run.

Watch out

Do not assume a firm must shut down whenever price is below average total cost. If the price covers average variable cost ( $P \ge AVC$ ), the firm continues operating in the short run to offset part of its fixed costs.

Drafted from Grade 11 Economics, pages 35-69, then checked twice before it went up

Spectrum of Market StructuresReference tablePerfect competition · Monopolistic competition · Oligopoly · +1

Market Structure	Number of Sellers	Product Type	Price Control
Perfect competition	Very many	Homogeneous	Price taker ( $P = MR$ )
Monopolistic competition	Many	Differentiated	Some discretion
Oligopoly	Few dominant sellers	Homogeneous or differentiated	Interdependent
Pure monopoly	Single seller	Unique without close substitutes	Price setter

When you use it

Use when classifying an industry or comparing the degree of competition across the four market models.

Watch out

Do not confuse monopolistic competition with monopoly. Monopolistically competitive markets contain many sellers with differentiated products, not a single firm.

Drafted from Grade 11 Economics, pages 35-69, then checked twice before it went up

National income accounting introduction

Double Counting Intermediate GoodsCommon mistake

When you use it

Avoid this error when calculating GDP by expenditure or value added methods.

Watch out

Do not add the price of intermediate inputs to the final good price. Only count the final value or the value added at each stage.

Drafted from Grade 11 Economics, pages 70-90, 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

$\text{GDP Deflator}$: GDP price deflator index $1$
$\text{Nominal GDP}$: GDP at current prices $\text{ETB}$
$\text{Real GDP}$: GDP at constant base year prices $\text{ETB}$

When you use it

Use this to measure changes in the overall price level of output relative to the base year.

Watch out

Real GDP in the denominator uses base year prices while Nominal GDP in the numerator uses current prices.

Drafted from Grade 11 Economics, pages 70-90, then checked twice before it went up

GDP Expenditure ApproachFormula

\text{GDP} = C + I + G + (X - M)

\text{GDP} = C + I + G + (X - M)

$\text{GDP}$: Gross domestic product $\text{ETB}$
$C$: Consumption spending $\text{ETB}$
$I$: Investment spending $\text{ETB}$
$G$: Government spending $\text{ETB}$
$X$: Exports $\text{ETB}$
$M$: Imports $\text{ETB}$

When you use it

Use this to calculate Gross Domestic Product by summing the spending of all sectors in the economy.

Watch out

Always subtract imports from exports so that spending on foreign goods is not counted as domestic production.

Drafted from Grade 11 Economics, pages 70-90, then checked twice before it went up

GNP from GDPFormula

\text{GNP} = \text{GDP} + \text{NFFI}

\text{GNP} = \text{GDP} + \text{NFFI}

$\text{GNP}$: Gross national product $\text{ETB}$
$\text{GDP}$: Gross domestic product $\text{ETB}$
$\text{NFFI}$: Net foreign factor income $\text{ETB}$

When you use it

Use this to convert Gross Domestic Product to Gross National Product using net foreign factor income.

Watch out

Foreign income earned inside the country is subtracted while national income earned abroad is added.

Drafted from Grade 11 Economics, pages 70-90, then checked twice before it went up

Inflation Rate from CPIFormula

\text{Inflation Rate} = \frac{\text{CPI}_{2} - \text{CPI}_{1}}{\text{CPI}_{1}} \times 100

\text{Inflation Rate} = \frac{\text{CPI}_{2} - \text{CPI}_{1}}{\text{CPI}_{1}} \times 100

$\text{Inflation Rate}$: Inflation rate $\%$
$\text{CPI}_{2}$: Consumer price index in period 2 $1$
$\text{CPI}_{1}$: Consumer price index in period 1 $1$

When you use it

Use this to calculate the percentage rate of inflation between two time periods.

Watch out

Always divide by the initial period index in the denominator and not the new period index.

Drafted from Grade 11 Economics, pages 70-90, then checked twice before it went up

Consumption, saving and investment introduction

Consumption FunctionFormula

C = C_0 + c Y_d

C = C_0 + c Y_d

$C$: Total Consumption expenditure $\text{ETB}$
$C_0$: Autonomous Consumption $\text{ETB}$
$c$: Marginal Propensity to Consume $1$
$Y_d$: Disposable Income $\text{ETB}$

When you use it

Use this formula to calculate total household consumption expenditure from autonomous consumption and disposable income.

Watch out

Autonomous consumption is strictly greater than zero even when disposable income is zero.

Drafted from Grade 11 Economics, pages 91-114, then checked twice before it went up

Net InvestmentFormula

\text{Net Investment} = \text{Gross Investment} - \text{Depreciation}

\text{Net Investment} = \text{Gross Investment} - \text{Depreciation}

$\text{Net Investment}$: Net Investment $\text{ETB}$
$\text{Gross Investment}$: Gross Investment $\text{ETB}$
$\text{Depreciation}$: Capital Depreciation $\text{ETB}$

When you use it

Use this formula to find the actual addition to the productive capital stock of an economy.

Watch out

Spending that only replaces worn-out capital is replacement investment and does not add to net productive capacity.

Drafted from Grade 11 Economics, pages 91-114, then checked twice before it went up

Propensities to Consume and SaveReference tableAverage · Marginal

Measure	Consumption	Saving	Identity
Average	$\text{APC} = \frac{C}{Y_d}$	$\text{APS} = \frac{S}{Y_d}$	$\text{APC} + \text{APS} = 1$
Marginal	$\text{MPC} = \frac{\Delta C}{\Delta Y_d}$	$\text{MPS} = \frac{\Delta S}{\Delta Y_d}$	$\text{MPC} + \text{MPS} = 1$

When you use it

Use these ratios to relate total or changing income to consumption and saving shares.

Watch out

APC and APS sum to 1, while MPC and MPS sum to 1. Never add an average propensity to a marginal propensity.

Drafted from Grade 11 Economics, pages 91-114, then checked twice before it went up

Real Interest RateFormula

r = i - \pi

r = i - \pi

$r$: Real Interest Rate $\%$
$i$: Nominal Interest Rate $\%$
$\pi$: Inflation Rate $\%$

When you use it

Use this formula to calculate the real cost of borrowing or true return on saving adjusted for inflation.

Watch out

Nominal interest rate is unadjusted for inflation, while real interest rate subtracts inflation.

Drafted from Grade 11 Economics, pages 91-114, then checked twice before it went up

Saving FunctionFormula

S = -C_0 + (1 - c)Y_d

S = -C_0 + (1 - c)Y_d

$S$: Saving $\text{ETB}$
$-C_0$: Dissaving at zero income $\text{ETB}$
$1 - c$: Marginal Propensity to Save $1$
$Y_d$: Disposable Income $\text{ETB}$

When you use it

Use this formula to determine total household saving at any given level of disposable income.

Watch out

The vertical intercept is negative, showing dissaving when income is zero.

Drafted from Grade 11 Economics, pages 91-114, then checked twice before it went up

Trade and finance introduction

Balance of Payments EquationFormula

\text{BoP} = \text{CA} + \text{KA}

\text{BoP} = \text{CA} + \text{KA}

$\text{BoP}$: Overall Balance of Payments $\text{ETB}$
$\text{CA}$: Current Account balance $\text{ETB}$
$\text{KA}$: Capital Account balance $\text{ETB}$

When you use it

Use this equation to find the total balance of payments from the sum of the current account and capital account balances.

Watch out

Current Account (CA) includes trade balance, net services, and net transfers. Do not substitute merchandise trade balance alone for CA.

Drafted from Grade 11 Economics, pages 115-145, then checked twice before it went up

Classical Trade Theories ComparisonReference tableAbsolute Advantage · Comparative Advantage

Theory	Key Economist	Basis for Trade
Absolute Advantage	Adam Smith	Lower labor hours or direct cost in producing a good
Comparative Advantage	David Ricardo	Lower opportunity cost in producing a good

When you use it

Use this table to distinguish between Adam Smith's absolute advantage and David Ricardo's comparative advantage models.

Watch out

Even when one country holds an absolute advantage in all goods, mutual trade still benefits both countries under comparative advantage based on lower opportunity costs.

Drafted from Grade 11 Economics, pages 115-145, then checked twice before it went up

Devaluation versus DepreciationCommon mistake

When you use it

Use this to avoid mixing up currency value terminology across fixed and flexible exchange rate systems.

Watch out

Do not use devaluation and depreciation interchangeably. Devaluation is an official policy action by a government or central bank under a fixed exchange rate system, whereas depreciation occurs via market forces under a floating exchange rate system.

Drafted from Grade 11 Economics, pages 115-145, then checked twice before it went up

Real Exchange RateFormula

\text{RER} = e \cdot \frac{P^*}{P}

\text{RER} = e \cdot \frac{P^*}{P}

$\text{RER}$: Real exchange rate $dimensionless$
$e$: Nominal exchange rate expressed as domestic currency per foreign currency $\text{ETB}\,\text{USD}^{-1}$
$P^*$: Foreign Price level $\text{USD}$
$P$: Domestic Price level $\text{ETB}$

When you use it

Use this formula to calculate the relative price of goods and purchasing power across two nations given the nominal exchange rate and price levels.

Watch out

The nominal exchange rate e must be expressed as the domestic price of foreign currency. If it is given as foreign units per domestic unit, invert it first.

Drafted from Grade 11 Economics, pages 115-145, then checked twice before it went up

Economic development introduction

Economic Growth versus Economic DevelopmentReference tableNature · Primary Indicator · Scope

Feature	Economic Growth	Economic Development
Nature	Quantitative increase in output	Multidimensional qualitative and quantitative change
Primary Indicator	Real GDP or GDP per capita	Human Development Index (HDI)
Scope	Narrow focus on aggregate production	Broad focus on poverty, institutions, health, education

When you use it

Use this comparison table when distinguishing between output expansion and broad socio-economic progress.

Watch out

Economic growth is necessary for economic development, but economic growth does not automatically guarantee development.

Drafted from Grade 11 Economics, pages 146-167, then checked twice before it went up

GDP Growth RateFormula

\text{GDP growth} = \frac{G_t - G_{t-1}}{G_{t-1}} \times 100

\text{GDP growth} = \frac{G_t - G_{t-1}}{G_{t-1}} \times 100

$\text{GDP growth}$: Percentage growth rate of gross domestic product $\%$
$G_t$: Real GDP in current period $\text{USD}$
$G_{t-1}$: Real GDP in previous period $\text{USD}$

When you use it

Use this formula to calculate the percentage change in real GDP between two consecutive time periods.

Watch out

Always divide by the previous period GDP in the denominator, not the current period GDP.

Drafted from Grade 11 Economics, pages 146-167, then checked twice before it went up

Measures of ProductivityFormula

P = \frac{O}{I}

P = \frac{O}{I}

$P$: Productivity ratio $\text{output per input unit}$
$O$: Total output volume $\text{units produced or USD}$
$I$: Total input volume used $\text{hours worked or units}$

When you use it

Use this formula to measure how efficiently production inputs are converted into outputs.

Watch out

Higher productivity can occur by increasing output with constant input, or by reducing input while maintaining output.

Drafted from Grade 11 Economics, pages 146-167, then checked twice before it went up

Main sectors, sectorial policies and strategies of Ethiopia

Agricultural Development-Led Industrialization (ADLI)Rule

When you use it

Use when explaining the core mechanism linking agriculture and industrial development in Ethiopia's post-1991 development framework.

Watch out

ADLI treats agriculture not as a passive sector, but as the leading primary engine that feeds labor-intensive industrial growth through domestic raw materials and market demand.

Drafted from Grade 11 Economics, page 168 onwards, then checked twice before it went up

Comprehensive vs Minimum Package ProjectsCommon mistake

When you use it

Use when identifying the difference between early agricultural extension models introduced under the Imperial regime.

Watch out

Comprehensive projects (CADU, WADU) came first and provided intensive inputs but were too expensive to replicate nationwide. Minimum Package Projects were introduced later as a low-cost alternative covering wider geographical areas.

Drafted from Grade 11 Economics, page 168 onwards, then checked twice before it went up

Ethiopian Sectoral Policies Across Three RegimesReference tableImperial (Pre-1974) · Derg (1974 to 1991) · Post-1991

Regime	Agricultural Sector Strategy	Industrial Sector Strategy
Imperial (Pre-1974)	Commercial farms, package projects (CADU, WADU)	Import-substituting light consumer industries, foreign capital
Derg (1974 to 1991)	Land nationalization, state farms, forced cooperatives	Centrally planned, state ownership, private capital ceilings
Post-1991	ADLI, PADETES extension, market liberalization	Export-led, labor-intensive industries, industrial parks

When you use it

Use when outlining the shift in Ethiopia's agricultural and industrial policies from the Imperial era through the Derg to the post-1991 era.

Watch out

The Derg did not prioritize market incentives; it imposed price controls, quantitative import restrictions, and nationalized modern manufacturing and commercial farms.

Drafted from Grade 11 Economics, page 168 onwards, then checked twice before it went up

Uni-modal vs Bi-modal Agricultural StrategiesReference tablePrimary Target · Output Focus · Land and Labor · +1

Feature	Uni-modal Strategy	Bi-modal Strategy
Primary Target	Intensification of small-scale peasant farms	Dualistic: small peasant farms and commercial farms
Output Focus	Food crops for food security	Commercialization and high-value export crops
Land and Labor	Peasants retain land, reduces eviction	Allows land concentration, risks peasant eviction
Country Examples	Japan, Thailand, China	Mexico, Colombia

When you use it

Use when comparing global approaches to agricultural transformation and their socioeconomic impacts on smallholder farmers.

Watch out

Do not confuse the two approaches: uni-modal protects smallholders from eviction and targets food security, while bi-modal promotes large-scale commercialization and risks creating landless rural labor.

Drafted from Grade 11 Economics, page 168 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 11 subjects

Everything else in this year that has cards so far.

Questions students ask

What do the Grade 11 Economics cards cover?: 31 cards across 7 chapters of the national textbook: Theory of consumer behavior and demand introduction, Market structure and the decision of firms introduction, National income accounting introduction, Consumption, saving and investment introduction, Trade and finance introduction, Economic development introduction and Main sectors, sectorial policies and strategies of Ethiopia. You can take any chapter one card at a time on the page itself.
Is there a national exam in Grade 11?: 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 11 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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