Economics - 2017 E.C (2024/2025) Ethiopian University Entrance Exam (EUEE)

A Availability of credit

B Cost of inputs

C State of technology

D Change in productivity

A Aggregate demand shifts to the right increasing both output and price level.

B Aggregate demand shifts to the left increasing both output and price level

C Aggregate demand shifts to the left decreasing output and increasing price level.

D Aggregate demand shifts to the right increasing output but decreasing price level.

A Higher price of imported raw materials leads to firms to produce more.

B Lower demand for commodities in the market initiates firms to produce more.

C Subsidizing domestic industry in technology leads to decrease production.

D Qualified high managerial ability leads to firms to produce more production.

A It shows the quantity demanded at different price levels, ceteris paribus.

B It reveals that as price level rises, firms decrease the quantity supplied of goods.

C It shows the quantity supplied of output at various price levels, ceteris paribus.

D It reveals that as price level drops, firms increase the quantity supplied of goods.

A The occurrence of a shortage of goods leads to firms decrease output and consumption decrease consumption.

B It is the intersection of aggregate demand and aggregate supply.

C The occurrence of a surplus of goods leads to firms decrease output and consumption increase consumption.

D It is the intersection of long-run and short-run aggregate supply curves.

A At a lower price level, there will be surplus, and the price level decreases.

B At a higher price level there will be shortage, and the price level increases.

C At a lower price level, there will be shortage and the price level rises.

D At a higher price level there will be surplus, and the price level increases

A Taxing the polluting firm

B Subsidizing the polluting firm

C Encouraging the polluting firm

D Renting the polluted river

A Free ridership is a problem that arises due to the excludable nature of public goods.

B Individuals get the benefits of public goods without contributing anything to the cost.

C All individuals have the incentive to pay for the public good.

D The free rider problem enables the markets operate efficiently for public goods.

A Playing loud music in the neighborhood

B Smoking in public places

C Vaccination program in the neighborhood

D Overgrazing cows in the common pasture lands