Tuyển tập Đề thi VEO IEO

VIETNAM
ECONOMICS
OLYMPIAD
Lê Anh Vinh, Nguyễn Thanh Tâm (Đồng chủ biên)

Nguyễn Huy Hoàng, Hồ Quốc Đăng Hưng, Hoàng Phương Hạnh,
Vũ Văn Luân, Nguyễn Bích Diệp, Nguyễn Thị Hà Trang
TUYỂN TẬP ĐỀ THI
KINH TẾ VIỆT NAM VÀ QUỐC TẾ

Lê Anh Vinh, Nguyễn Thanh Tâm (Đồng chủ biên)
Nguyễn Huy Hoàng, Hồ Quốc Đăng Hưng, Hoàng Phương Hạnh
Vũ Văn Luân, Nguyễn Bích Diệp, Nguyễn Thị Hà Trang
TUYỂN TẬP ĐỀ THI

OLYMPIC KINH TẾ
QUỐC TẾ
LỜI MỞ ĐẦU
Kinh tế học là môn học nhằm giúp học sinh tuổi vị thành niên có sự chuẩn bị cho việc
độc lập tài chính trong tương lai. Học sinh sẽ học cách phân biệt các mục tiêu dài
hạn và ngắn hạn, hiểu được sự vận hành của nền kinh tế, hoạt động của các thành
phần trong nền kinh tế, nắm quyền kiểm soát cuộc sống tài chính của mình và tự tin
khởi nghiệp trong tương lai. Kiến thức kinh tế căn bản luôn cần thiết giúp thế hệ sau
có được một tương lai thành công và thuận lợi.
Với mục tiêu tăng cường giáo dục kiến thức về kinh tế và tài chính cho học sinh trong
các trường Trung học trên khắp thế giới, kỳ thi Olympic Kinh tế Quốc tế (IEO) được
tổ chức lần đầu tiên tại Moscow với sự góp mặt của 64 thí sinh đến từ 13 quốc gia.
Kể từ đó đến nay, số lượng các quốc gia cùng tổng số lượng thí sinh hàng năm đều
tăng lên rõ rệt. Tính đến năm 2022, đã có 205 thí sinh, tương ứng với 41 đội thi đại
diện cho 40 quốc gia trên thế giới tham dự kỳ thi này. Bên cạnh các câu hỏi lý thuyết,
học sinh tham dự cuộc thi còn có cơ hội phát triển kỹ năng phân tích cũng như mở
rộng kiến thức về tài chính và kinh doanh của bản thân thông qua các tình huống
mang tính thực tiễn. Những học sinh đạt giải cao tại kỳ thi đã ghi danh vào các
trường đại học hàng đầu thế giới như Oxford, Stanford, MIT, Harvard,...
Giống như các kỳ thi Olympic khác, kỳ thi Olympic Kinh tế quôc tế quy định mỗi
quốc gia tham gia kỳ thi được cử 1 đội tuyển đại diện cho quốc gia đó. Từ năm 2022,
riêng quốc gia chủ nhà được tuyển chọn 02 đội tham gia. Để đại diện mỗi quốc gia
tham gia dự thi tại IEO, các thí sinh cần vượt qua kỳ thi về kinh tế trong nước được tổ
chức bởi đối tác chính thức của IEO tại mỗi quốc gia. Bắt đầu từ năm học 2021 –
2022, Trung tâm Phát triển bền vững Chất lượng giáo dục Phổ thông Quốc gia, Viện
Khoa học Giáo dục Việt Nam trở thành đối tác chính thức của IEO tại Việt Nam.
Trung tâm đã phối hợp cùng Công ty TNHH Giáo dục Edmicro tổ chức kỳ thi thường
niên Olympic Kinh tế Việt Nam (Vietnam Economics Olympiad - VEO) để lựa chọn
những thí sinh xuất sắc nhất đại diện cho Việt Nam, tham dự kỳ thi Kinh tế Quốc tế
được tổ chức vào tháng bảy hàng năm. Sau 2 năm Việt Nam tham dự Olympic Kinh
tế quôc tế IEO, đội tuyển quốc gia đã đạt được một số thành tích đáng ghi nhận và
khích lệ. Tại IEO 2021 – năm đầu tiên tham gia Kỳ thi, đội tuyển Việt Nam giành
được 02 Huy chương Đồng cho phần thi cá nhân, xếp thứ hạng 25/44 toàn đoàn,
xếp thứ hạng 2 toàn đoàn cho riêng phần thi Hiểu biết Tài chính. Tại IEO 2022, đội
tuyển Việt Nam giành được 04 Huy chương Đồng cho phần thi cá nhân, 01 Giải Thí
sinh xuất sắc cho phần thi Hiểu biết Tài chính (Best in Finance Literacy), xếp thứ hạng
22/41 toàn đoàn. Thành tích này đã có sự tiến bộ và vượt bậc đáng kể so với năm
đầu tiên tham gia IEO.
Tuy vậy, mục tiêu, tầm nhìn cũng như sứ mệnh của kỳ thi VEO cũng như IEO không chỉ
giới hạn ở việc lựa chọn được những đội tuyển thi đấu. Mục tiêu đầu tiên và quan trọng
nhất của kỳ thi này là nhằm tăng cường giáo dục kiến thức về kinh tế và tài chính cho
học sinh trong các trường trung học, giúp nâng cao nhận thức, khơi gợi sự quan tâm
của các em học sinh đối với các vấn đề kinh doanh, kinh tế và tài chính đang diễn ra
trong cuộc sống. Đồng thời, kỳ thi cũng hướng đến việc giúp phát triển các năng lực
sáng tạo, tư duy logic, khả năng vận dụng những kiến thức chung trong việc giải quyết
các vấn đề thực tiễn của cuộc sống; từ đó, giúp các em học sinh định hướng nghề
nghiệp và làm chủ những kỹ năng cần thiết để thành công trong tương lai.
Với mong muốn lan tỏa và thông tin rộng rãi đến nhiều học sinh về kỳ thi Olympic
Kinh tế, hỗ trợ các em học sinh tự học và ôn luyện cũng như cung cấp cho các em
một tài liệu tham khảo hữu ích trong quá trình các em tiếp cận, tìm hiểu về một môn
học tương đối mới mẻ tại Việt Nam, các chuyên gia và đội ngũ giáo viên của Ban tổ
chức Olympic Kinh tế Việt Nam đã nghiên cứu và tổng hợp “Tuyển tập đề thi Olympic
Kinh tế quốc tế” dành cho học sinh từ lớp 8 đến lớp 12. Đây là tài liệu hữu ích với
các thông tin đầy đủ về 2 kỳ thi VEO và IEO, thông tin về nội dung học và chương
trình thi, đề thi từng vòng của 2 kỳ thi VEO và IEO kèm hướng dẫn và đáp án. Sách
gồm 2 phần chính:
1. Tuyển tập đề thi Olympic Kinh tế Việt Nam - Vietnam Economics Olympiad
(VEO) – Phần thi viết (Economics) năm 2021 và 2022 (Kèm hướng dẫn trả lời)
2. Tuyển tập đề thi Olympic Kinh tế quốc tế- International Economics Olympiad
(IEO) – Phần thi viết (Economics) từ năm 2018 đến năm 2022 (Kèm hướng
dẫn trả lời)
Trong quá trình biên tập cuốn sách này chắc chắn không tránh khỏi thiếu sót, chúng
tôi rất mong nhận được sự góp ý xây dựng từ phía bạn đọc.
Nhóm tác giả.
MỤC LỤC
LỜI MỞ ĐẦU ...................................................................................................... 2
TUYỂN TẬP ĐỀ THI OLYMPIC KINH TẾ VIỆT NAM - VIETNAM
ECONOMICS OLYMPIAD (VEO) ...................................................................... 6
Mô tả đề thi VEO .............................................................................................. 6
VIETNAM ECONOMICS OLYMPIAD (VEO) 2021 .......................................... 7
Thông tin các vòng thi.................................................................................. 7
Đề thi Vietnam Economics Olympiad – VEO 2021.................................. 8
Đề thi thử VEO 2021 ....................................................................................... 8
Đề thi Vòng 1 VEO 2021 ............................................................................... 15
Đề thi Vòng 2 VEO 2021 ............................................................................... 24
Đáp án/Hướng dẫn trả lời ........................................................................ 35
Đáp án Đề thi thử VEO 2021 ......................................................................... 35
Đáp án Đề thi Vòng 1 VEO 2021 ................................................................... 43
VIETNAM ECONOMICS OLYMPIAD (VEO) 2022 ........................................ 80
Thông tin các vòng thi................................................................................ 80
Đề thi Vietnam Economics Olympiad – VEO 2022................................ 81
Đề thi Vòng 1 VEO 2022 ............................................................................... 81
Đề thi Vòng 2 VEO 2022 ............................................................................... 88
Đáp án/Hướng dẫn trả lời ........................................................................ 99
Đáp án Đề thi Vòng 2 VEO 2022 ................................................................. 106
TUYỂN TẬP ĐỀ THI OLYMPIC KINH TẾ QUỐC TẾ - INTERNATIONAL
ECONOMICS OLYMPIAD (IEO) .................................................................... 128
Mô tả đề thi IEO ........................................................................................... 128
ĐỀ THI INTERNATIONAL ECONOMICS OLYMPIAD 2018 ........................ 140
Đề thi tiếng Anh ........................................................................................ 140
Phần thi Trắc nghiệm – Multiple Choice Question ........................................... 140
Phần thi Tự luận/Câu hỏi mở - Open Question .............................................. 146
Bản dịch tham khảo ................................................................................. 150
Đáp án/Hướng dẫn trả lời ...................................................................... 156
Đề thi tiếng Anh ........................................................................................ 172
Phần thi Tự luận/Câu hỏi mở -Open Questions .............................................. 176
Phần thi Tự luận/Câu hỏi mở - Open Questions ............................................. 188
Đề thi tiếng Anh ........................................................................................ 203
Phần thi Trắc nghiệm – Multiple Choice Test .................................................. 223
Đề thi tiếng Anh ........................................................................................ 241
Đề thi tiếng Anh ........................................................................................ 271
TUYỂN TẬP ĐỀ THI OLYMPIC KINH TẾ QUỐC TẾ
TUYỂN TẬP ĐỀ THI OLYMPIC KINH TẾ VIỆT NAM - VIETNAM

ECONOMICS OLYMPIAD (VEO)
Mô tả đề thi VEO
Các nội dung thi trong Olympic Kinh tế Việt Nam có sự phát triển qua từng năm và
tuân theo một số định hướng như:
- Có sự bám sát theo định hướng nội dung của Olympic Kinh tế quốc tế, thể
hiện qua phạm vi nội dung câu hỏi và hình thức thi. Vì vậy, học sinh có thể tham
khảo phần Nội dung thi của kỳ thi quốc tế để định hướng và ôn luyện.
- Có sự tinh giản hơn so với nội dung thi của Olympic Kinh tế quốc tế, để kỳ
thi phù hợp với bối cảnh giáo dục tại Việt Nam; đồng thời cũng nhằm giúp nhiều đối
tượng học sinh Việt Nam tiếp cận được với môn học mới.
- Có sự phát triển, tăng dần về yêu cầu kiến thức, kỹ năng qua từng năm để
thúc đẩy phong trào học kinh tế, đồng thời để tiệm cận hơn với thực tiễn dạy và học
kinh tế trên thế giới.
Theo các định hướng đó, cách thức ra đề thi năm 2021 và 2022 đã có sự thay đổi
theo hướng phát triển mở rộng và yêu cầu tăng lên đối với thí sinh.
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VIETNAM ECONOMICS OLYMPIAD (VEO) 2021
Thông tin các vòng thi
Bảng 1. Thông tin các vòng thi VEO 2021

STT Thông tin Vòng 1 Vòng 2 Vòng 3
01 Mô tả 20 câu hỏi trắc 20 câu hỏi trắc Phỏng vấn cá nhân
nghiệm nghiệm & 5 câu 5-10 câu hỏi
hỏi mở/tự luận ngắn/thí sinh
02 Hình thức - Cá nhân - Cá nhân - Cá nhân
thi - Trực tuyến - Trực tuyến - Trực tuyến
03 Số lượng thí 20% số thí sinh có 15 thí sinh có điểm
sinh điểm cao nhất ở cao nhất ở Vòng 2
Vòng 1
04 Thời gian 90 phút 235 phút 15 phút/thí sinh
05 Ngôn ngữ Tiếng Việt & Tiếng Anh Tiếng Anh
dự thi Tiếng Anh
06 Cách tính +4 điểm cho 1 - Trắc nghiệm: +4 Tiêu chí đánh giá
điểm câu trả lời đúng, điểm cho 1 câu - Kiến thức chuyên
không trả lời trả lời đúng, -1 ngành Kinh tế
không được điểm điểm cho 1 câu - Tư duy phản biện
trả lời sai, không - Kỹ năng Tiếng Anh
trả lời không và Thuyết trình
được điểm
- Tự luận: 30
điểm/câu; tính
điểm 4 câu
07 Điểm tối đa 80 200
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Đề thi Vietnam Economics Olympiad – VEO 2021
Đề thi thử VEO 2021
STT Tiếng Anh Tiếng Việt (Dịch tham khảo)
1 Which content below that Nội dung nào dưới đây mà Kinh tế vi
Microeconomics (one branch of mô (một phân môn của kinh tế học)
economics) studies: nghiên cứu:
a. the international economy b. all a. nền kinh tế quốc tế
aspects of scarcity b. tất cả các khía cạnh của sự khan
c. which choices that individuals hiếm
and businesses make c. những lựa chọn mà các cá nhân và
d. the nationwide economy doanh nghiệp thực hiện
d. nền kinh tế quốc gia
2 As making decision to choose and Khi đưa ra quyết định chọn và mua
buy one item between two of them, một trong số hai mặt hàng, chúng ta
one should: (người mua) nên:
a. Choose and buy an item after a. Chọn và mua một mặt hàng sau
comparing the prices and khi so sánh giá cả và ưu điểm của cả
advantages of both items. hai mặt hàng.
b. Choose and buy the item which b. Chọn và mua mặt hàng có lợi ích
has greater benefits. lớn hơn.
c. Choose and buy the cheaper c. Chọn và mua mặt hàng rẻ hơn.
item. d. Chọn và mua ngẫu nhiên
d. Choose and buy randomly
3 "Infrastructure" of a country "Cơ sở hạ tầng" của một quốc gia có
means: nghĩa là:
a. economies of scale that this a. Tính kinh tế theo quy mô mà quốc
country is able to recognize gia này nhận biết ra
b. public capital goods such as b. hàng hóa công cộng như đường
highways and utilities that this cao tốc và các tiện ích mà quốc gia
country invests in này đầu tư vào
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c. technological knowledge that this c. tri thức về công nghệ mà đất nước
country stocks này tích trữ được
d. the productivity of this country's d. năng suất của lực lượng lao động
labour force của quốc gia này
4 Pure monopoly refers to: Độc quyền hoàn hảo (hay Độc quyền
a. any market wherein the demand thuần túy) đề cập đến:
curve to the firm is downward a. bất kỳ thị trường nào trong đó
sloping đường cầu đối với công ty dốc xuống
b. a standardized product being b. một sản phẩm được tiêu chuẩn hóa
produced by many firms đang được sản xuất bởi nhiều công ty
c. a great number of firms c. một số lượng lớn các công ty sản
producing a differentiated product. xuất một "sản phẩm khác biệt hóa".
d. a single firm producing a d. một công ty độc nhất sản xuất một
product for which there are no sản phẩm mà không có "hàng hóa
close substitutes thay thế gần gũi"
5 An industry can be best described Một ngành công nghiệp được định
as:a. A group of firms located in nghĩa là:a. Một nhóm các công ty
the same city or geographic areab. trong cùng một thành phố hoặc khu
Companies that use identical vực địa lýb. Các công ty cùng sử dụng
production techniquesc. A group of một kĩ thuật sản xuất giống nhau c.
firms producing identical or similar Một nhóm các công ty sản xuất các
productsd. A group of employers sản phẩm giống hoặc tương tự nhau
that compete for labour d. Một nhóm các chủ sử dụng lao
động cạnh tranh tìm kiếm lao động
6 Someone who runs a business to Một người mở công ty để sản xuất
produce a new product in the một sản phẩm mới trên thị trường
marketplace is referred to as: được gọi là:
a. A manager. a. Nhà quản lý
b. A bureaucrat. b. Công chức
c. An entrepreneur. c. Doanh nhân
d. A salesman d. Người bán hàng
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7 If the price of beef increased twice Nếu giá thịt bò tăng gấp đôi trong khi
and the price of poultry remained giá gia cầm giữ nguyên, mọi người sẽ
constant, people would most likely có xu hướng mua:
buy: a. Nhiều gia cầm hơn và ít thịt bò hơn
a. More poultry and less beef. b. Ít gia cầm hơn và nhiều thịt bò hơn
b. Less poultry and more beef. c. Cùng một lượng gia cầm và thịt bò
c. The same amount of poultry and d. Nhiều gia cầm hơn và nhiều thịt bò
beef. hơn
d. More poultry and more beef
8 For the majority of people, the Đối với phần lớn mọi người, phần lớn
largest share of their personal nhất của thu nhập cá nhân đến từ:
income is from: a. Tiền công và tiền lương từ các công
a. Wages and salaries from their việc họ làm
jobs. b. Lãi suất từ cổ phiếu và trái phiếu
b. Interest from stocks and bonds họ sở hữu
they own. c. Tiền cho thuê từ các tài sản họ sở
c. Rent paid to them from property hữu
they own. d. Không rõ
d. Don’t know.
9 If the price level increased from Nếu mức giá tăng từ 100 lên 140 thì
100 to 140, then what was the tỷ lệ lạm phát là?
inflation rate? a. 14%
a. 14 percent b. 4%
b. 4 percent c. 40%
c. 40 percent d. 400%.
d. 400 percent.
10 Which of the following is a function Chức năng nào dưới đây là chức
of money? năng của tiền tệ ?
a. a unit of account a. Đơn vị thanh toán.
b. a store of value b. Cất trữ giá trị.
c. medium of exchange c. Phương tiện trao đổi.
d. All of the above are correct. d. Tất cả các ý trên.
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11 When the government's Khi chi tiêu của chính phủ trong một
expenditures for a year are greater năm lớn hơn khoản thu ngân sách
than its revenue for that year, the trong năm đó, thì sự chênh lệch đó
difference is known as: được gọi là:
a. The national debt. a. Nợ quốc gia.
b. A budget deficit. b. Thâm hụt ngân sách.
c. A budget surplus. c. Thặng dư ngân sách .
d. Budget balance. d. Cân đối thu chi ngân sách.
12 If the real GDP (gross domestic Nếu GDP - tổng sản phẩm quốc nội
product) of Vietnam has increased, thực tế của Việt Nam tăng lên, nhưng
but the production of goods has sản lượng hàng hóa sản xuất không
remained the same, then the đổi, thì sản lượng của ngành dịch vụ
production of services has: sẽ:
a. Increased. a. Tăng lên.
b. Decreased. b. Giảm đi.
c. Remained the same. c. Không đổi.
d. Fluctuated. d. Biến động lên xuống.
13 Vietnam grows fruits and Việt Nam sản xuất trái cây và rau
vegetables and Japan produces quả còn Nhật sản xuất thịt bò. Nếu
beef. If Vietnam voluntarily trades Việt Nam dùng trái cây và rau quả
fruits and vegetables in exchange trao đổi với thịt bò của Nhật, thì:
for Japanese beef, then: a. Cả Việt Nam và Nhật cùng có lợi
a. Both Vietnam and Japan benefit từ việc giao dịch.
from the trade. b. Cả Việt Nam và Nhật cùng thiệt
b. Both Vietnam and Japan lose hại từ việc giao dịch.
from the trade. c. Việt Nam có lợi còn Nhật bị thiệt
c. Vietnam benefits and Japan hại.
loses from the trade. d. Nhật Bản có lợi còn Việt Nam thiệt
d. Japan benefits and Vietnam hại từ việc giao dịch.
loses from the trade.
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14 If discrimination based upon Nếu xã hội bài trừ được nạn phân
gender and race were eliminated, biệt giới tính và phân biệt chủng tộc,
we would expect the: thì:
a. personal distribution of income a. phân phối thu nhập cá nhân sẽ trở
to become less equal nên mất cân bằng hơn
b. personal distribution of income b. phân phối thu nhập cá nhân sẽ trở
to become more equal nên cân bằng hơn
c. personal distribution of income c. phân phối thu nhập cá nhân không
to be unaffected bị ảnh hưởng
d. functional distribution of income d. phân phối thu nhập chức năng sẽ
to change in favor of profits and thay đổi theo chiều hướng có lợi cho
interest lợi nhuận và lãi suất
15 The main source of the acid rain Nguyên nhân chủ yếu của vấn nạn
problem is: mưa acid là:
a. polluted ocean water a. nước biển bị ô nhiễm
b. automobile exhaust b. khí thải từ phương tiện giao thông
c. methane gas emerging from c. khí metan từ các bãi rác thải
landfills d. ô nhiễm khí lưu huỳnh đioxit từ các
d. sulfur dioxide pollution from hoạt động sinh hoạt
utilities.
16 Currently An work for 30 hours per An đang làm việc 30 giờ 1 tuần với
week at the wage rate of mức lương 100,000 đồng/giờ. Giả
100,000VND an hour. An's free sử mức lương của An được tăng 20%.
hours are defined as the number of Chọn đáp án đúng:
hours not spent in work per week. a. Nếu mỗi tuần An làm việc vời thời
Suppose now that An's wage rate lượng giảm đi 20%, thu nhập của An
has increased by 20%. Choose the không thay đổi.
correct statement: b. Nếu mỗi tuần thời gian rảnh của
a. If An decreases her total work An (tức thời gian không làm việc) tăng
hours per week by 20%, her total 20%, thu nhập của An không thay
weekly income remains the same. đổi.
c. Cả a và b đều đúng.
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b. If An increases your total free d. Cả a và b đều sai

hours per week by 20%, her total
weekly income remains the same.
c. Both a and b are correct.
d. Neither a nor b is correct.
17 A construction worker wants to Một người công nhân muốn tiết kiệm
save for his new house. At the end tiền để mua nhà. Vào cuối mỗi năm,
of each year, he saves about anh ta tiết kiệm được $6000 và đầu
$6000 and invests that money into tư hết vào thị trường chứng khoán và
the stock market that has an thị trường chứng khoán tăng trưởng
average growth rate of 8%. trung bình 8% mỗi năm. Biết rằng vào
Assume that he has $10000 in at đầu năm 2021, anh ta có $10000 và
the beginning of 2021 and he bắt đầu đầu tư vào chứng khoán . Hỏi
starts to invest in stock market , đáp án nào sau đây sẽ gần nhất với
which of the following is closest to tổng giá trị danh mục đầu tư dự kiến
the total value of his portfolio at the của anh ta tại thời điểm đầu năm
beginning of 2026? 2026?
a. $30000 b. $40000 a. $30000 b. $40000
c. $45000 d. $50000 c. $45000 d. $50000
18 A startup founder participates in Một nhà doanh nghiệp tham gia
Shark Tank to sell his startup. His chương trình Shark Tank để bán
company earns a fixed profit of startup của mình. Biết rằng công ty
$100.000 per year and is này có lợi nhuận cố định $100.000
expected to earn the same amount mỗi năm và được kỳ vọng là sẽ tiếp
for the next 10 years. Assume a tục có lợi nhuận như vậy trong 10
10% discount rate and the total năm tới. Giả sử tỷ lệ chiết khấu 10%
value of the initial investment is và tổng giá trị của khoản đầu tư ban
negligible, which of the following đầu là không đáng kể, thì mức giá
price would be acceptable for the nào sau đây sẽ được các nhà đầu tư
investors while the startup founder (các Shark) chấp nhận trong khi
can make the most money? người sáng lập startup có thể kiếm
được nhiều tiền nhất?
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a. $281.000 a. $281.000
b. $600.000 b. $600.000
c. $1.200.000 c. $1.200.000
d. $3.000.000 d. $3.000.000
19 In 2010, the nominal GDP of the Trong năm 2010, tổng sản phẩm
USA is 15 trillion USD while the quốc nội (GDP) danh nghĩa của Mỹ
GDP of China is 6.087 trillion USD. là 15 nghìn tỷ USD và tổng sản phẩm
Assume that the USA average quốc nội GDP danh nghĩa của Trung
growth rate is 2.5%, China Quốc là 6,087 nghìn tỷ USD. Giả sử
average growth rate is 7% and tốc độ tăng trưởng GDP trung bình
there will be no major economic của Mỹ và Trung Quốc lần lượt là
recession, when will the nominal 2,5% và 7% và giả sử không có khủng
GDP of China is expected to hoảng kinh tế lớn nào, GDP danh
overtake the nominal GDP of the nghĩa của Trung Quốc sẽ vượt Mỹ
USA? vào khoảng năm nào?
a. 2020 b. 2031 a. 2020 b. 2031
c. 2045 d. 2059 c. 2045 d. 2059
20 Two bakery (X and Y) produce only Hai tiệm bánh (X và Y) chỉ sản xuất
bread (B) and sweet (S). The bánh mì (B) và bánh ngọt (S). Đường
production possibility frontiers are giới hạn khả năng sản xuất của tiệm
given by: BX + SX = 250, and BY + X và Y lần lượt là: BX + SX = 250, và
4SY = 800. What is the maximum BY + 4SY = 800. Số lượng bánh mì tối
amount of bread that they can đa mà họ có thể sản xuất cùng nhau
produce together if they want to là bao nhiêu nếu họ muốn sản xuất ít
produce at least 300 sweet? nhất 300 bánh ngọt?
a. 300 b. 600 a. 300 b. 600
c. 750 d. 760 c. 750 d. 760
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Đề thi vòng 1 VEO 2021
1 Which are the contents that Những nội dung nào dưới đây là nội
Macroeconomics study: dung mà Kinh tế học vĩ mô nghiên
a. Variables of the whole cứu:
economy. a. Các biến của tổng thể nền kinh tế.
b. Consumers' choices between b. Sự lựa chọn của người tiêu dùng
fish and beef. giữa sản phẩm thịt cá và thịt bò.
c. What a strike by the United c. Cuộc đình công của Nghiệp đoàn
Auto Workers affects General Công nhân Ôtô Mỹ (The United Auto
Motors Workers - UAW) ảnh hưởng gì đến
d. The decision that government nhà sản xuất ô tô General Motors
makes relating to supports for (GM)
price of lychee d. Quyết định mà chính phủ đưa ra
liên quan đến việc hỗ trợ giá vải thiều
2 When you rents a house to stay Khi bạn thuê một căn nhà vừa để ở
and run a shop selling ordered và vừa kinh doanh cửa hàng bán
goods with monthly rental fee of hàng order với giá thuê hàng tháng
15 million VND, who benefits là 15 triệu Việt Nam đồng thì ai là
from this transaction? người được lợi từ giao dịch này?
a. Only you. a. Chỉ có bạn.
b. Only the landlord. b. Chỉ có chủ nhà.
c. Both you and the landlord. c. Cả bạn và chủ nhà.
d. Neither you nor the landlord. d. Không ai trong số bạn và chủ nhà.
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3 After graduation from high school, Sau khi tốt nghiệp trung học phổ
Lan decided to enroll in a four- thông, Lan quyết định đăng ký theo
year program at the local học chương trình cử nhân 4 năm tại
university rather than to accept a trường đại học địa phương thay vì
job that offered a salary of 8,500 chấp nhận một công việc có mức
USD per year. If the annual tuition lương 8,500 USD / năm. Nếu học
and fees are 6,000 USD and Lan phí và lệ phí hàng năm là 6,000 USD
has to take loan at an interest rate và Lan phải vay tiền để học với lãi
of 8%/year to cover the expenses, suất 8% / năm để trang trải chi phí,
which of the following is closest to thì giá trị nào sau đây gần nhất với
the total opportunity cost of tổng chi phí cơ hội của việc học đại
attending the university after four học sau bốn năm?
years? a. 34,000 USD
a. 34,000 USD b. 58,000 USD
b. 58,000 USD c. 61,000 USD
c. 61,000 USD d. 65,000 USD
d. 65,000 USD
4 Please choose the policy which Hãy chọn chính sách hợp lý giúp thúc
would be sensible to promote đẩy đổi mới sáng tạo trong ngành
innovation in the information công nghệ thông tin?
technology industry? a. Đánh thuế tất cả các phát minh mới
a. Placing a tax on all new trong ngành công nghệ thông tin.
inventions in the information b. Thêm các đầu tư vào hoạt động
technology industry. nghiên cứu và phát triển trong ngành
b. Investing in more research and công nghệ thông tin.
development in the information c. Tăng thêm các quy định của chính
technology industry. phủ đối với ngành công nghệ thông
c. Increasing government tin.
regulation of the information d. Tất cả các chính sách trên
technology industry.
d. All of the above polices
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5 Our economy comprises a lot of Nền kinh tế của chúng ta bao gồm rất
institutions and the stock market is nhiều thể chế và thị trường chứng
one of them. The stock market as khoán là một trong số đó. Thị trường
an institution is the place where chứng khoán với tư cách là một thể
people invest to reach their chế là nơi mọi người thực hiện đầu tư
economic objectives. This nhằm đạt được các mục tiêu kinh tế
institution's presence: của mình. Sự hiện diện của thể chế
a. Makes the price of stocks này:
increase. a. Làm cho giá của cổ phiếu tăng lên.
b. Assists predict stock earnings. b. Giúp cho việc dự đoán được thu
c. Helps everyone joining get nhập từ cổ phiếu.
money c. Giúp cho tất cả mọi người tham gia
d. Brings buyers and sellers of vào thị trường chứng khoán đều kiếm
stocks together. được tiền
d. Mang người mua và người bán cổ
phiếu lại với nhau.
6 The producers of ABC swimsuits Các nhà máy sản xuất đồ bơi của
run their manufacturing plants day ABC hoạt động hết công suất cả ngày
and night, but it is still impossible nhưng vẫn không thể sản xuất đủ số
to produce enough swimsuits to lượng đồ bơi đáp ứng nhu cầu thị
meet demand. If ABC trường. Nếu ABC không thể tăng sản
manufacturers cannot lift lượng sản xuất trong khi nhu cầu vẫn
production while demand tiếp tục tăng thì giá đồ bơi ABC sẽ:
continues to rise, the price of ABC a. Giữ nguyên
swimsuits will: b. Giảm
a. Remain constant c. Tăng
b. Decrease. d. Không thể dự đoán được
c. Increase.
d. Cannot forecast.
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7 If the interest rates charged by Nếu lãi suất tiết kiệm niêm yết bởi các
banks increase from 4% to 7%, ngân hàng tăng từ 4% lên 7%, điều gì
which of the following will most sau đây sẽ có nhiều khả năng được
likely be encouraged to happen? khuyến khích xảy ra nhất?
a. Businesses will borrow money a. Các doanh nghiệp sẽ vay tiền
from banks to invest. ngân hàng để đầu tư
b. People will open saving b. Người dân sẽ mở tài khoản tiết
accounts kiệm
c. People will buy house c. Người dân sẽ mua nhà
d. All of the above d. Tất cả các phương án trên
8 Products and services supplied by Hàng hoá và dịch vụ được nhà nước
government often benefit: cung ứng thường có lợi cho:
a. Firms with costs born by a. Các doanh nghiệp với chi phí do
consumers người tiêu dùng gánh chịu
b. Only those who pay for these b. Chỉ những người trả tiền mua
products and services. những hàng hoá và dịch vụ đó
c. Many people at a time no c. Nhiều người cùng một lúc, bất kể
matter they have paid for them or họ có trả tiền cho những hàng hoá và
not dịch vụ đó hay không
d. Nobody d. Không ai cả
9 GDP does not count illegally GDP không tính hàng hoá được sản
produced and sold items and xuất và tiêu thụ trái phép, cũng như
those produced and consumed at hàng hoá được sản xuất và tiêu dùng
home because tại nhà, bởi vì:
a. Their quality is too low to a. Chất lượng của chúng quá thấp để
contribute value to GDP đóng góp giá trị vào GDP
b. These items are not listed in b. Những mặt hàng này không được
income tax forms kê khai trong bản khai thuế thu nhập
c. The production and c. Việc sản xuất và tiêu dùng các mặt
consumption of these items are not hàng này không được Nhà nước
encouraged by the government. khuyến khích
d. It is not easy to measure them
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d. Rất khó để đo lường chính xác giá

trị những mặt hàng này
10 On a monopoly market, the Một nhà sản xuất độc quyền trên thị
demand function for good X is trường có hàm cầu Q=80-P và hàm
Q=80-P, and the monopolist’ cost sản xuất TC(Q)=Q2. Biết rằng nhả
function is TC(Q)=Q2. Suppose the sản xuất này có thể bỏ ra một chi phí
monopolist can rent a cố định C để thuê một thiết bị công
technological device for a fixed nghệ thay đổi hàm sàn xuất thành
cost C that would change the cost TC(Q)=20Q. Chi phí C tối đa mà nhà
function to TC(Q)=20Q. What is sản xuất nên bỏ ra để thuê thiết bị
the largest amount of C that the này là bao nhiêu?
monopolist should pay for this
device? a.50 b. 100
a.50 b. 100 c. 150 d. 200
c. 150 d. 200
11 What is the variable which takes Biến số nào dưới đây có vai trò nổi
the the most significant role in bật và quan trọng nhất trong việc lý
accounting for huge differences in giải sự chênh lệch lớn về mức sống
standards of living all over the của người dân ở các quốc gia khác
world: nhau trên thế giới:
a. Productivity. a. Năng suất lao động.
b. Population. b. Dân số.
c. Preferences. c. Sở thích/Thị hiếu tiêu dùng.
d. Prices. d. Giá cả.
12 At the end of this school year, you Cuối năm học này, em cần giúp bố
need to help your parents to mẹ dự trù tổng chi phí học tập cho
estimate your total learning cost năm học sau. Khi tính tổng chi phí
for the following school year. cho năm học tiếp theo, em đang vận
When you calculate the total dụng chức năng nào của tiền?
expenses for the next academic a. Một phương tiện trao đổi.
year, which function of money do b. Một phương tiện cất giữ giá trị.
you apply? c. Một thước đo giá trị.
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a. A medium of exchange. d. Tất cả những chức năng trên.

b. A store of value.
c. A measure of value.
d. All of the above.
13 We calculate the consumer price Chúng ta tính toán Chỉ số giá tiêu
index (CPI) in order to: dùng CPI nhằm mục đích để:
a. Control changes in the level of a. Kiểm soát sự thay đổi của mức giá
wholesale prices in the economy. bán buôn trong nền kinh tế.
b. Monitor changes in the cost of b. Giám sát sự thay đổi trong chi phí
living over time. sinh hoạt theo thời gian.
c. Observe changes in the level of c. Theo dõi sự thay đổi mức GDP thực
real GDP over time. tế theo thời gian.
d. Supervise changes in the stock d. Giám sát sự thay đổi trên thị trường
market. chứng khoán.
14 From year 2019 to year 2020, Từ năm 2019 đến năm 2020, giả sử
suppose the nominal GDP of GDP danh nghĩa của Việt Nam tăng
country Vietnam increased from từ 3,421 USD lên $ 3,521 USD, trong
3,421 USD to 3,521 USD, while khi chỉ số giảm phát GDP tăng từ 262
the GDP Deflator rose from 262 to lên 270. GDP danh nghĩa thay đổi
270. Nominal GDP changed by ____%, chỉ số giảm phát GDP thay
____%, the GDP Deflator changed đổi____% và GDP thực tế thay đổi
by ____%, and real GDP changed ____%.
by ____%.
a. 2.92, 3.05, negative 0.13 a. 2.92, 3.05, âm 0.13
b. 100, 8, positive 92 b. 100, 8, 92
c. 2.92, 8, negative 5.08 c. 2.92, 8, âm 5.08
d. 100, 3.05, positive 92 d. 100, 3.05, 92
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15 If Vietnam stopped importing Nếu Việt Nam ngừng nhập khẩu điện
mobile phones from Country A, thoại di động từ Quốc gia A, ai sẽ là
who would be most likely to người có lợi nhất?
benefit? a. Các nhà sản xuất điện thoại di
a. Mobile phone manufacturers in động tại Việt Nam.
Vietnam. b. Người tiêu dùng tại Việt Nam.
b. Consumers in Vietnam. c. Các nhà sản xuất điện thoại di
c. Mobile phone manufacturers in động ở Quốc gia A.
Country A. d. Các nhà sản xuất điện thoại di
d. Both Mobile phone động ở cả Việt Nam và Quốc gia A
manufacturers in Vietnam and in sẽ được lợi như nhau.
Country A would gain equal
benefit.
16 Which of the following DOES Yếu tố nào dưới đây KHÔNG góp
NOT contribute to income phần tạo nên bất bình đẳng thu
inequality? nhập:
a. Differences in ability and a. Chênh lệch về khả năng và trình
training độ đào tạo
b. Differences in job tastes b. Khác biệt trong sở thích nghề
c. Differences in property nghiệp
ownership c. Chênh lệch trong tài sản sở hữu
d. Government transfers (also d. Các thanh toán chuyển nhượng
called transfer payments or simply của Chính phủ
transfers)
17 Hung's utility function (u) for tea (T Hàm lợi ích của Hưng (u) cho trà (gọi
as quantity of tea) and coffee (C as T là lượng trà) và cà phê (gọi C là
quantity of coffee) is lượng cà phê) là u(T,C)=min(2T, 3C).
u(T,C)=min(2T, 3C). Suppose that Biết rằng lúc đầu cà phê đắt hơn 25%
at the beginning, coffee is 25% so với trà. Nếu giá trà tăng lên 75%
more expensive than tea. If tea's thì giá cà phê phải giảm đi bao nhiêu
price increases by 75%, then how để lựa chọn tiêu dùng tối ưu của Hưng
much does coffee's price has to không thay đổi so với ban đầu?
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drop so that Hung's optimal a. 50%

consumption bundle remains the b. 77.5%
same? c. 87.5%
a. 50% d. Hưng không thể duy trì mức tiêu
b. 77.5% dùng ban đầu với bất kì mức giá cà
c. 87.5% phê nào.
d. Hung cannot purchase the
initial consumption bundle
regardless of the coffee price.
18 Which of the following Chính sách nào sau đây (nếu được
government policies (if being ban hành) sẽ thúc đẩy việc sử dụng
issued) would be most likely to các nguồn năng lượng tái tạo:
encourage usage of renewable a. Đầu tư nhiều hơn vào các dự án
energy sources? nhiên liệu hóa thạch
a.Invest in more fossil fuel plant b. Trợ cấp và mua lại lượng năng
projects lượng mặt trời dư thừa từ các hộ gia
b) Subsidize and repurchase đình
excess solar energy from c. Giảm thuế xăng dầu
households d. Trợ cấp các công ty nhiên liệu hóa
c) Lower the fuel tax thạch
d) Subsidize fossil fuel companies
19 In one-price shop (where every Trong một cửa hàng đồng giá (tất cả
product is sold at the same price, mặt hàng có chung một giá nhưng
the price may change however), giá có thể thay đổi), bàn chải đánh
the toothpaste and the toothbrush răng và kem đánh răng có cùng 1 giá
are both sold at 1 USD each. 1 USD. Giả sử hệ số co giãn của cầu
Assuming the price elasticity of theo giá của kem đánh răng là 2 còn
demand coefficient of the hệ số tương ứng của bàn chải là 1,
toothpaste is 2 while this nếu cửa hàng tạo ra 1 gói sản phẩm
coefficient of the toothbrush is 1, bán chung hai mặt hàng này với
what is the price elasticity of nhau thì hệ số co giãn của cầu theo
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demand coefficient of both giá của gói sản phẩm ấy là bao

products selling together as a set? nhiêu?
a. 3 b. 2.5 a. 3 b. 2.5
c. 2 d. 1.5 c. 2 d. 1.5
20 A factory employs x skilled labors, Một nhà máy sử dụng x lao động tay
y unskilled labors and z machines nghề cao, y lao động tay nghề thấp
to produce shoes. Assume that the và z máy để sản xuất giày. Giả sử
factory's budget is 200,000 USD vốn hàng tháng của nhà máy là
per month, average machine's 200,000 USD, chi phí vận hành mỗi
monthly maintenance cost is máy là 1,000 USD và chi phí tuyển
1,000 USD each and the average dụng trung bình của lao động tay
costs to employ skilled and nghề cao và lao động tay nghề thấp
unskilled labors are 2,000 USD lần lượt là 2,000 USD và 1,000 USD.
and 1,000 USD respectively. If the Nếu hàm sản xuất của nhà máy là
production function is P(x,y) = P(x,y) = x^(2/3)y^(1/3)z^(1/3) thì nhà
x^(2/3)y^(1/3)z^(1/3), what is the máy nên tuyển bao nhiêu lao động
optimal number of skilled labor tay nghề cao để tối ưu sản lượng?
should be employed such that the
production output is maximized?
a. 75 b. 60 a. 75 b. 60
c. 50 d. 45 c. 50 d. 45
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Đề thi Vòng 2 VEO 2021
Phần thi Trắc nghiệm – Multiple Choice Question
STT Câu hỏi
Consider a market of 2 firms with similar constant marginal cost. The

demand function is Q=80-P. Initially the 2 firms collude to maximize the
sum of their profits. Suppose now that firm 1 cheats and maximizes its own
1 profit while knowing that firm 2 still produces the same level of output. What
is the change in firm 1's output compared to before? (Q: Quantity; P: Price)
a. Decrease by 50% b. Increase by 50%
c. Decrease by 75% d. Increase by 75%
Supply factors in economic growth DO NOT comprise:
a. full employment
2 b. development of technology
c. the size and quality of the labor force
d. the stock of capital
Game theory is the study about:
a. How to manage production at the lowest cost.
3 b. The impacts of individuals' decision makings having on others' actions .
c. How to manage a financial portfolio to reduce or avoid risk.
d. How to play a video game.
What will a corporation's stockholders lose if it goes bankrupt:
a. their stock's value only
b. their stock's value in addition to all other business assets of their
possession
4
c. their stock's value in addition to all other personal assets of their
possession
d. their stock's value in addition to all other business assets and personal
assets of their possession
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Which of the following will most likely be encouraged to happen if the

government of your city establishes the highest rental fee landlords can
charge?
a. Everything will remain unchanged.
5
b. The number of available flats will exceed the number of people who want
to rent.
c. The number of people who want to rent will exceed that of available flats.
d. The number of available flats will be equal to those want to rent.
Which is the term that best describes the number of unemployed people an
economy normally experiences?
a. typical rate of unemployment.
6
b. average rate of unemployment.
c. cyclical rate of unemployment.
d. natural rate of unemployment.
As soon as purchasing a car that has airbags, Minh starts to drive riskily.
Which problem does this case illustrate:
a. free-rider problem
7
b. principle -agent problem
c. adverse selection problem
d. moral hazard problem
GDP (Gross Domestic Product) comprises of approximate value calculations
of which of the following non-market goods or services?
a. the estimated rental monetary worth of owner-occupied homes
8 b. the monetary worth of unpaid housework
c. the monetary worth of vegetables and other foods that people grow in
their gardens
d. All of the above are included in GDP.
If all banks offer the reserve ratio of 25 percent, then new reserves of 3
million VND (Vietnamese Dong) can generate:
9 a. 6 million VND of new money in the economy.
b. 750,000 VND of new money in the economy.
c. 12 million VND of new money in the economy.
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d. 7.5 million VND of new money in the economy.

When the economy experiences high inflation, which of the following are
most likely to be benefitted?
a. People who live on a fixed income.
10
b. Banks that loaned money at a fixed interest rate.
c. People who borrowed money at a fixed interest rate.
Which of the following must be correct in the context of a closed economy,
national saving is positive?
a. Either public saving or private saving must be positive.
11 b. Investment is greater than zero.
c. National income (GDP) is greater than the sum of Consumption and
Government Spending
d. All of the above are correct.
What is the fundamental economic argument to achieve more income
equality?
a. an equal distribution of income is the logical outcome of any tax-transfer
program.
b. citizens are also entitled to economic equality due to the fact that they
12
enjoy political equality.
c. a more equal distribution of income will likely to maximize incentives to
work, invest, and assume risk.
d. a more equal distribution of a given amount of income will make the total
utility of consumers go up.
Assume that new plastic and recyclable plastic are close substitutes. Which
of the following will be the consequence of a tax increase on original
resources used to make plastic containers?
13 a. the demand for recyclable plastic will increase
b. the demand for recyclable plastic will decrease
c. the supply of recyclable plastic will decrease
d. the equilibrium price of recyclable plastic will be reduced
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Hanh’s Bakery offers a discount of 40% if a customer pays the 50,000 VND
(Vietnamese Dong) monthly fee. What is the minimum monthly spending at
14 the shop so that this purchase is worthwhile?

a. At least 75,000VND b. At least 100,000VND
c. At least 125,000VND d. At least 150,000VND
Which of the following statements is NOT TRUE about a non-discriminating

monopoly?
a. The marginal revenue increases as the monopoly produces more outputs.
b. If marginal revenue is greater than marginal cost, the monopoly should
15 increase output.
c. The monopoly must lower the price on all outputs to sell additional
outputs.
d. Relative to a perfectly competitive market, the monopoly produces less
output at a higher price.
A father wants to divide 100 gold bars among his 2 daughters. He asks
each of them to whisper to him the number of gold bars she wants (an
integer between 0 and 100), without the other knowing. If the total number
16
of bars the 2 daughters ask for is greater than 100, then both of them
receive nothing. How many Nash equilibria are there in this game?
a. 0 b. 1 c. 101 d. 102
Define the average variable cost (AVC) to produce Q outputs as C(Q)/Q,
where C(Q) is the total cost function; MC is Marginal Cost. Suppose that a
perfectly competitive firm X can generate positive profit, then at its optimal
17
output:
a. MC > AVC b. MC < AVC
c. MC = AVC d. Impossible to determine
The table represents market demand Q for bread at different prices P.
Q (Unit: Loaf) 150 170 250 290 310 400 450 600
P (Unit: USD) 330 305 255 210 185 130 100 85
18
The bakery’s unit cost of bread is 25 USD. Based on this information, how
many loaves of bread should the bakery make?
a. 150 b. 170 c. 250 d. 450
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The 2,000 USD (United States Dollar) face value US (United States)
government bond has a coupon rate of 6%, with interest paid annually, and
19 matures in 10 years. If the bond is priced to yield 8%, which of the following
is closest to the bond's present value?
a. 1,250 USD b. 1,500 USD c. 1,750 USD d. 2,000 USD
A taxi driver bought a car for 500 million VND (Vietnamese Dong) that has
an expected useful life of 5 years. He is expected to earn 120 million VND
20 annually for the next 5 years. What is the maximum discount rate such that
this purchase is desirable for the driver, assuming he is rational?
a. 5% b. 6% c. 7% d. 8%
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Phần thi Tự luận/Câu hỏi mở - Open Question
Solve 4 questions out of 5.
If you provide solutions for all 5 questions, all of them will be commented by the Jury,
but only 4 will add to your score. In this case, if you do not specify which to grade,
the minimum grade of 5 will be excluded.
Every open question is worth 30 points.
If not stated otherwise, think of all goods, services and assets as of infinitely divisible.
Numbers of firms and people may be only integer.
Convey your ideas clearly. Do not skip important logical transitions in your reasoning.
Good luck!
Question 1. “COVID-19 vaccine as a good” (30 points)

In this task, please read the passage and answer the following questions related to
COVID-19 vaccine.
Reading Passage has five sections A-E.
A
Developing and distributing a safe and effective SARS-CoV-2 (COVID-19) vaccine
have garnered immense global interest. Less than a year after COVID-19 was
declared a pandemic, several vaccine candidates had received emergency use
authorization across a range of countries. Despite this scientific breakthrough, the
journey from vaccine discovery to global herd immunity against COVID-19 continues
to present significant policy challenges that require a globally collaborative response.
B
In the process of producing and allocating COVID-19 vaccines all over the world,
international organizations/ country unions/ countries/ economists/scientists around
the world are having two opposing opinions around the question "Is COVID-19
vaccine a global public good?”. Some (such as The World Health Organization
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(WHO) and The European Union (EU)) think that COVID-19 vaccines are global
public goods; others (such as World Health Assembly (WHA) and The United States)
argue that it is not possible to confirm that COVID-19 vaccines are public goods
orldwide.
C
In Vietnam, in response to the ongoing pandemic, the Government has also launched
the COVID-19 vaccination campaign with several timely financing and distribution
policies. The Government and National Ministries of Vietnam are in charge of
purchasing, importing, receiving donated vaccines, managing and using COVID-19
vaccines in 2021 for people aged 18 and above.
D
Regarding Financing policies, Vietnam maintains three sources of funds to purchase
vaccines:
i) The state budget ensuring the vaccination based on decentralization of state
budget which includes the national budget and the local budget.
ii) Aids from domestic and foreign organizations and other legal sources.
iii) Voluntary funding from organizations and individuals that use the vaccines.
In order to mobilize social resources for the purchase and import of vaccines as well
as for research, development and production of domestic vaccines, the Government
has established the National COVID-19 vaccine fund in June 2021.
E
In terms of Distribution policies, vaccines (free of charge) are distributed to prioritized
entities and areas. After that, free vaccines are also delivered to all people to quickly
achieve herd immunity. Then, when the supply is stable, the COVID-19 vaccines will
be distributed in both Expanded Program on Immunization (free of charge) and
Program on Immunization with service fees. This means people will be given free
injections similar to the vaccines in the current Expanded Program on Immunization;
besides, there will also be an additional proportion of vaccines given to those who
can afford it with a service charge.
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a. (5 points)
Please refer to the term “public good” in section B:
- What is a public good? (2 points)
- What are the attributes of a public good? (2 points)
- Give examples (1 point)
b. (10 points)
In section B, one controversial topic is raised: "Is the COVID-19 vaccine a
global public good?”
State and discuss your opinion for the above question.
You should answer:
- What is a global public good?
- In your point of view, are COVID 19 Vaccines global public goods or not?
- Explain your opinion.
- Give examples to illustrate based on facts from reliable sources (such as
practical policies and research evidence)
c. (15 points)
Consider the policies described in sections C – D – E.
c1. (3 points) Indicate the type of goods of COVID - 19 Vaccines in Vietnam in your
point of view.
c2. (4 points) Instead of using State Budget and establishing National COVID-19
vaccine fund to mobilize social resources for financing COVID-19 vaccines, why does
the government not print more money at its disposal to cover all the expenses in
financing for COVID-19 Vaccine?
In terms of economics, what would happen if government did that?
c3. (8 points) Imagine that Vietnam only maintained ONE way to distribute vaccines,
as opposed to the combined solutions as at present. Consider two possible scenarios
described below.
- Scenario 1: Vaccine is financed and distributed freely as per “Invisible Hand”
Theory and the principle of “First come, first serve” without Government’s intervention.
The Government loosens all the regulations in financing and distribution of vaccines
and let access to vaccine depend on demand and supply as well as financial ability
of sellers and buyers.
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In this case, what would happen in terms of economics? Give short explanation.
- Scenario 2: Vaccine is distributed only by the Government, using State
Budget, and free of charge for everyone. There is no mechanism for Program on
Immunization with service charge for people who can afford.
In this case, what would happen in terms of economics? Give short
explanation.
Question 2. “Some impacts of COVID-19 on the Vietnamese economy” (30 points)

The COVID-19 pandemic has affected and brought many changes to the
Vietnamese economy, compared to the time point before outbreak of pandemic. There
are other changes also forecasted by experts to take place in the future, some of which
are described below.
a. (10 points) Affected industries

In August 2020, data from the Business Registration Administration (Ministry
of Planning and Investment of Vietnam) announced that the three industries that had
been affected most negatively since the outbreak of the disease, shown in the number
of businesses that have been suspended due to the impact of the epidemic and the
decrease in the number of newly established businesses compared to the same period
in 2019 are: Arts and entertainment; Accommodation and catering services;
Education and training.
Please explain why and how COVID 19 is the cause of these changes.
b. (10 points) Fall in the banking interest rates, compared to 2019

Throughout 2020, almost all levels of banking interest rates in Vietnam had
gradually decreased compared to 2019. Specifically, there are 3 time points of
simultaneous decrease: March, May, and October 2020. Some types of decreased
interest rates in 2020 include:
- Discount rate (2.5%/year)
- Supplying capital interest rate (4%/year).
- Deposit interest rate in Vietnam Dong for demand deposits and all term
deposits
- Short-term lending interest rate in Vietnam Dong (5.0%/year)
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c. (10 points) Increasing inflation rate Up to the present time (June 2021), in the
context that the COVID-19 vaccines have been produced and distributed more widely
in many countries, the world economy has started to enter a recovery phase, the
inflation rate in Vietnam is expected to increase in the second half of 2021.
Please explain why and how COVID 19 can be the cause of this change.
Note: you should pay attention and refer to specific time points stated in each
question when planning your response.
Question 3 (30 points)

A city is asking every one of its 1000 residents to contribute a fixed amount of
money toward a COVID-19 vaccine fund. Suppose that vaccine will be provided to
the city if and only if at least k people contribute, where 2<=k<=1000. Also, the
contributions are not refunded even if the vaccine is not provided. Each person's
ranking of outcomes is as follows:
1) vaccine is provided and not having to contribute
2) vaccine is provided and having to contribute
3) vaccine is not provided and not having to contribute
4) vaccine is not provided and having to contribute.
a. (9 points)
Suppose you are one of the residents and you know that exactly m of the other
999 residents have contributed. What would you do and why?
b. (21 points) Find all Nash equilibria.
Question 4. (30 points)

Schumacher is an expected-utility maximizer who is also a racing boy, so his
probability of an accident is 2/3. Schumacher’s utility function based on wealth is
u(w)  w 0.5 . Suppose that Schumacher’s initial wealth is 400 USD. If Schumacher has
an accident, he incurs a 204 USD loss.
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a. (6 points) Calculate Schumacher’s expected utility?
b. (6 points) Now, there is one insurance company called Insurance Experts

Organization (IEO) with one policy available: Full insurance. IEO charges a fixed
premium and then pays Schumacher 204 USD if he gets in an accident. If the
insurance company is risk neutral, what is the premium π they need to charge to
break even?
c. (6 points) Compute the expected utility for Schumacher if he purchases the

insurance at premium π and decide whether Schumacher will purchase the insurance?
d. (12 points) Consider now the general case with u(w)  w a with a  0. Prove that,
in fact, Schumacher purchases the insurance at premium π if a  1. If you cannot do
the math, provide intuition on this.

Suppose a perfectly competitive market has the following demand function Q(P)=80-
P. There are no barriers to entry and exit in this market, and assume that every firm
has the same cost function. A long run equilibrium consists of a price P*, quantity of
output Q*, and the number of firms N such that:
i) Q* maximizes each firm's profit at price P*.
ii) Market clears: demand equals supply Q(P*)=NQ*.
iii) No firm has the incentive to enter or exit the market.
a. (10 points)
Explain how condition iii implies that in a long run equilibrium, each firm's
maximum profit must be 0.
b. (20 points)
2
Assume the firms' cost function is C q  0.5q  20q  18 . Find the long
  
run equilibrium (P*, Q*, N).
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Đáp án/Hướng dẫn trả lời
Đáp án Đề thi thử VEO 2021
C1 C2 C3 C4 C5 C6 C7 C8 C9 C10
c a b d c c a a c a
C11 C12 C13 C14 C15 C16 C17 C18 C19 C20
b a a b d d d b b b
1 Which content below that Nội dung nào dưới đây mà Kinh tế vi
Microeconomics (one branch of mô (một phân môn của kinh tế học)
economics) studies: nghiên cứu:
a. the international economy a. nền kinh tế quốc tế
b. all aspects of scarcity b. tất cả các khía cạnh của sự khan
c. which choices that hiếm
individuals and businesses c. những lựa chọn mà các cá
make nhân và doanh nghiệp thực
d. the nationwide economy hiện
d. nền kinh tế quốc gia
2 As making decision to choose and Khi đưa ra quyết định chọn và mua
buy one item between two of them, một trong số hai mặt hàng, chúng ta
one should: (người mua) nên:
a. Choose and buy an item a. Chọn và mua một mặt hàng
after comparing the prices and sau khi so sánh giá cả và ưu
advantages of both items. điểm của cả hai mặt hàng.
b. Choose and buy the item which b. Chọn và mua mặt hàng có lợi ích
has greater benefits. lớn hơn.
c. Choose and buy the cheaper item. c. Chọn và mua mặt hàng rẻ hơn.
d. Choose and buy randomly d. Chọn và mua ngẫu nhiên
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3 "Infrastructure" of a country means: "Cơ sở hạ tầng" của một quốc gia có

a. economies of scale that this nghĩa là:
country is able to recognize a. Tính kinh tế theo quy mô mà quốc
b. public capital goods such as gia này nhận biết ra
highways and utilities that this b. hàng hóa công cộng như
country invests in đường cao tốc và các tiện ích
c. technological knowledge that this mà quốc gia này đầu tư vào
country stocks c. tri thức về công nghệ mà đất nước
d. the productivity of this country's này tích trữ được
labour force d. năng suất của lực lượng lao động
của quốc gia này
4 Pure monopoly refers to: Độc quyền hoàn hảo (hay Độc quyền
a. any market wherein the demand thuần túy) đề cập đến:
curve to the firm is downward a. bất kỳ thị trường nào trong đó
sloping đường cầu đối với công ty dốc xuống
b. a standardized product being b. một sản phẩm được tiêu chuẩn
produced by many firms hóa đang được sản xuất bởi nhiều
c. a great number of firms producing công ty
a differentiated product. c. một số lượng lớn các công ty sản
d. a single firm producing a xuất một "sản phẩm khác biệt hóa".
product for which there are no d. một công ty độc nhất sản
close substitutes xuất một sản phẩm mà không
có "hàng hóa thay thế gần gũi"
5 An industry can be best described Một ngành công nghiệp được định
as:a. A group of firms located in nghĩa là:a. Một nhóm các công ty
the same city or geographic areab. trong cùng một thành phố hoặc
Companies that use identical khu vực địa lýb. Các công ty cùng
production techniques sử dụng một kĩ thuật sản xuất giống
c. A group of firms nhau
producing identical or similar c. Một nhóm các công ty sản
productsd. A group of employers xuất các sản phẩm giống
that compete for labour hoặc tương tự nhau d. Một
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nhóm các chủ sử dụng lao động

cạnh tranh tìm kiếm lao động
6 Someone who runs a business to Một người mở công ty để sản

produce a new product in the xuất một sản phẩm mới trên thị
marketplace is referred to as: trường được gọi là:
a. A manager. a. Nhà quản lý
b. A bureaucrat. b. Công chức
c. An entrepreneur. c. Doanh nhân
d. A salesman d. Người bán hàng
7 If the price of beef increased twice Nếu giá thịt bò tăng gấp đôi
and the price of poultry remained trong khi giá gia cầm giữ nguyên,
constant, people would most likely mọi người sẽ có xu hướng mua:
buy: a. Nhiều gia cầm hơn và ít
a. More poultry and less beef. thịt bò hơn
b. Less poultry and more beef. b. Ít gia cầm hơn và nhiều thịt bò
c. The same amount of poultry and hơn
beef. c. Cùng một lượng gia cầm và thịt
d. More poultry and more beef bò
d. Nhiều gia cầm hơn và nhiều thịt
bò hơn
8 For the majority of people, the Đối với phần lớn mọi người, phần
largest share of their personal lớn nhất của thu nhập cá nhân
income is from: đến từ:
a. Wages and salaries from a. Tiền công và tiền lương từ
their jobs. các công việc họ làm
b.Interest from stocks and bonds b. Lãi suất từ cổ phiếu và trái phiếu
they own. họ sở hữu
c.Rent paid to them from property c. Tiền cho thuê từ các tài sản họ
they own. sở hữu
d. Don’t know. d. Không rõ
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9 If the price level increased from 100 Nếu mức giá tăng từ 100 lên 140 thì
to 140, then what was the inflation tỷ lệ lạm phát là?
rate? a. 14%
a. 14 percent b. 4%
b. 4 percent c. 40%
c. 40 percent d. 400%.
d. 400 percent.
10 Which of the following is a function Chức năng nào dưới đây là chức
of money? năng của tiền tệ ?
a. a unit of account a. Đơn vị thanh toán.
b. a store of value b. Cất trữ giá trị.
c. medium of exchange c. Phương tiện trao đổi.
d. All of the above are correct. d. Tất cả các ý trên.
11 When the government's Khi chi tiêu của chính phủ trong một
expenditures for a year are greater năm lớn hơn khoản thu ngân sách
than its revenue for that year, the trong năm đó, thì sự chênh lệch đó
difference is known as: được gọi là:
a. The national debt. a. Nợ quốc gia.
b. A budget deficit. b. Thâm hụt ngân sách.
c. A budget surplus. c. Thặng dư ngân sách .
d. Budget balance. d. Cân đối thu chi ngân sách.
12 If the real GDP (gross domestic Nếu GDP - tổng sản phẩm quốc nội
product) of Vietnam has increased, thực tế của Việt Nam tăng lên, nhưng
but the production of goods has sản lượng hàng hóa sản xuất không
remained the same, then the đổi, thì sản lượng của ngành dịch vụ
production of services has: sẽ:
a. Increased. a. Tăng lên.
b. Decreased. b. Giảm đi.
c. Remained the same. c. Không đổi.
d. Fluctuated. d. Biến động lên xuống.
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13 Vietnam grows fruits and vegetables Việt Nam sản xuất trái cây và rau
and Japan produces beef. If Vietnam quả còn Nhật sản xuất thịt bò. Nếu
voluntarily trades fruits and Việt Nam dùng trái cây và rau quả
vegetables in exchange for Japanese trao đổi với thịt bò của Nhật, thì:
beef, then: a. Cả Việt Nam và Nhật cùng
a. Both Vietnam and Japan có lợi từ việc giao dịch.
benefit from the trade. b. Cả Việt Nam và Nhật cùng thiệt
b. Both Vietnam and Japan lose from hại từ việc giao dịch.
the trade. c. Việt Nam có lợi còn Nhật bị thiệt
c. Vietnam benefits and Japan loses hại.
from the trade. d. Nhật Bản có lợi còn Việt Nam thiệt
d. Japan benefits and Vietnam loses hại từ việc giao dịch.
from the trade.
14 If discrimination based upon gender Nếu xã hội bài trừ được nạn phân
and race were eliminated, we would biệt giới tính và phân biệt chủng tộc,
expect the: thì:
a. personal distribution of income to a. phân phối thu nhập cá nhân sẽ trở
become less equal nên mất cân bằng hơn
b. personal distribution of b. phân phối thu nhập cá nhân
income to become more equal sẽ trở nên cân bằng hơn
c. personal distribution of income to c. phân phối thu nhập cá nhân
be unaffected không bị ảnh hưởng
d. functional distribution of income d. phân phối thu nhập chức năng sẽ
to change in favor of profits and thay đổi theo chiều hướng có lợi cho
interest lợi nhuận và lãi suất
15 The main source of the acid rain Nguyên nhân chủ yếu của vấn nạn
problem is: mưa acid là:
a. polluted ocean water a. nước biển bị ô nhiễm
b. automobile exhaust b. khí thải từ phương tiện giao thông
c. methane gas emerging from c. khí metan từ các bãi rác thải
landfills d. ô nhiễm khí lưu huỳnh đioxit
từ các hoạt động sinh hoạt
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d. sulfur dioxide pollution

from utilities.
16 Currently An work for 30 hours per An đang làm việc 30 giờ 1 tuần với
week at the wage rate of mức lương 100,000 đồng/giờ. Giả
100,000VND an hour. An's free sử mức lương của An được tăng 20%.
hours are defined as the number of Chọn đáp án đúng:
hours not spent in work per week. a. Nếu mỗi tuần An làm việc vời thời
Suppose now that An's wage rate lượng giảm đi 20%, thu nhập của An
has increased by 20%. Choose the không thay đổi.
correct statement: b. Nếu mỗi tuần thời gian rảnh của
a. If An decreases her total work An (tức thời gian không làm việc)
hours per week by 20%, her total tăng 20%, thu nhập của An không
weekly income remains the same. thay đổi.
b. If An increases your total free c. Cả a và b đều đúng.
hours per week by 20%, her total d. Cả a và b đều sai
weekly income remains the same.
c. Both a and b are correct.
d. Neither a nor b is correct.
17 A construction worker wants to save Một người công nhân muốn tiết kiệm
for his new house. At the end of each tiền để mua nhà. Vào cuối mỗi năm,
year, he saves about $6000 and anh ta tiết kiệm được $6000 và đầu
invests that money into the stock tư hết vào thị trường chứng khoán và
market that has an average growth thị trường chứng khoán tăng trưởng
rate of 8%. Assume that he has trung bình 8% mỗi năm. Biết rằng
$10000 in at the beginning of 2021 vào đầu năm 2021, anh ta có
and he starts to invest in stock market $10000 và bắt đầu đầu tư vào
, which of the following is closest to chứng khoán . Hỏi đáp án nào sau
the total value of his portfolio at the đây sẽ gần nhất với tổng giá trị danh
beginning of 2026? mục đầu tư dự kiến của anh ta tại thời
a. $30000 điểm đầu năm 2026?
b. $40000 a. $30000
c. $45000 b. $40000
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d. $50000 c. $45000
d. $50000
18 A startup founder participates in Một nhà doanh nghiệp tham gia

Shark Tank to sell his startup. His chương trình Shark Tank để bán
company earns a fixed profit of startup của mình. Biết rằng công ty
$100.000 per year and is expected này có lợi nhuận cố định $100.000
to earn the same amount for the next mỗi năm và được kỳ vọng là sẽ tiếp
10 years. Assume a 10% discount tục có lợi nhuận như vậy trong 10
rate and the total value of the initial năm tới. Giả sử tỷ lệ chiết khấu 10%
investment is negligible, which of the và tổng giá trị của khoản đầu tư ban
following price would be acceptable đầu là không đáng kể, thì mức giá
for the investors while the startup nào sau đây sẽ được các nhà đầu tư
founder can make the most money? (các Shark) chấp nhận trong khi
a. $281.000 người sáng lập startup có thể kiếm
b. $600.000 được nhiều tiền nhất?
c. $1.200.000 a. $281.000
d. $3.000.000 b. $600.000
c. $1.200.000
d. $3.000.000
19 In 2010, the nominal GDP of the Trong năm 2010, tổng sản phẩm
USA is 15 trillion USD while the GDP quốc nội (GDP) danh nghĩa của Mỹ
of China is 6.087 trillion USD. là 15 nghìn tỷ USD và tổng sản phẩm
Assume that the USA average quốc nội GDP danh nghĩa của Trung
growth rate is 2.5%, China average Quốc là 6,087 nghìn tỷ USD. Giả sử
growth rate is 7% and there will be tốc độ tăng trưởng GDP trung bình
no major economic recession, when của Mỹ và Trung Quốc lần lượt là
will the nominal GDP of China is 2,5% và 7% và giả sử không có
expected to overtake the nominal khủng hoảng kinh tế lớn nào, GDP
GDP of the USA? danh nghĩa của Trung Quốc sẽ vượt
a. 2020 Mỹ vào khoảng năm nào?
b. 2031 a. 2020
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c. 2045 b. 2031
d. 2059 c. 2045
d. 2059
20 Two bakery (X and Y) produce only Hai tiệm bánh (X và Y) chỉ sản xuất
bread (B) and sweet (S). The bánh mì (B) và bánh ngọt (S). Đường
production possibility frontiers are giới hạn khả năng sản xuất của tiệm
given by: BX + SX = 250, and BY + X và Y lần lượt là: BX + SX = 250, và
4SY = 800. What is the maximum BY + 4SY = 800. Số lượng bánh mì tối
amount of bread that they can đa mà họ có thể sản xuất cùng nhau
produce together if they want to là bao nhiêu nếu họ muốn sản xuất
produce at least 300 sweet? ít nhất 300 bánh ngọt?
a. 300 a. 300
b. 600 b. 600
c. 750 c. 750
d. 760 d. 760
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Đáp án Đề thi Vòng 1 VEO 2021

Which are the contents that Những nội dung nào dưới đây là nội
Macroeconomics study: dung mà Kinh tế học vĩ mô nghiên
a. Variables of the whole cứu:
economy. a. Các biến của tổng thể nền
b. Consumers' choices between fish kinh tế.
and beef. . b. Sự lựa chọn của người tiêu dùng
c. What a strike by the United Auto giữa sản phẩm thịt cá và thịt bò.
1
Workers affects General Motors c. Cuộc đình công của Nghiệp đoàn
d. The decision that government Công nhân Ôtô Mỹ (The United Auto
makes relating to supports for price Workers - UAW) ảnh hưởng gì đến
of lychee nhà sản xuất ô tô General Motors
(GM)
d. Quyết định mà chính phủ đưa ra
liên quan đến việc hỗ trợ giá vải thiều
When you rents a house to stay and Khi bạn thuê một căn nhà vừa để ở
run a shop selling ordered goods và vừa kinh doanh cửa hàng bán
with monthly rental fee of 15 million hàng order với giá thuê hàng tháng
VND, who benefits from this là 15 triệu Việt Nam đồng thì ai là
2 transaction? người được lợi từ giao dịch này?
a. Only you. a. Chỉ có bạn.
b. Only the landlord. b. Chỉ có chủ nhà.
c. Both you and the landlord. c. Cả bạn và chủ nhà.
d. Neither you nor the landlord. d. Không ai trong số bạn và chủ nhà.
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After graduation from high school, Sau khi tốt nghiệp trung học phổ
Lan decided to enroll in a four-year thông, Lan quyết định đăng ký theo
program at the local university học chương trình cử nhân 4 năm tại
rather than to accept a job that trường đại học địa phương thay vì
offered a salary of 8,500 USD per chấp nhận một công việc có mức
year. If the annual tuition and fees lương 8,500 USD / năm. Nếu học
are 6,000 USD and Lan has to take phí và lệ phí hàng năm là 6,000 USD
loan at an interest rate of 8%/year và Lan phải vay tiền để học với lãi
3
to cover the expenses, which of the suất 8% / năm để trang trải chi phí,
following is closest to the total thì giá trị nào sau đây gần nhất với
opportunity cost of attending the tổng chi phí cơ hội của việc học đại
university after four years? học sau bốn năm?
a. 34,000 USD a. 34,000 USD
b. 58,000 USD b. 58,000 USD
c. 61,000 USD c. 61,000 USD
d. 65,000 USD d. 65,000 USD
Please choose the policy which Hãy chọn chính sách hợp lý giúp thúc
would be sensible to promote đẩy đổi mới sáng tạo trong ngành
innovation in the information công nghệ thông tin?
technology industry? a. Đánh thuế tất cả các phát minh mới
a. Placing a tax on all new trong ngành công nghệ thông tin.
inventions in the information b. Thêm các đầu tư vào hoạt
technology industry. động nghiên cứu và phát triển
4 b. Investing in more research trong ngành công nghệ thông
and development in the tin.
information technology c. Tăng thêm các quy định của chính
industry. phủ đối với ngành công nghệ thông
c. Increasing government tin.
regulation of the information d. Tất cả các chính sách trên
technology industry.
d. All of the above polices
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Our economy comprises a lot of Nền kinh tế của chúng ta bao gồm rất
institutions and the stock market is nhiều thể chế và thị trường chứng
one of them. The stock market as an khoán là một trong số đó. Thị trường
institution is the place where people chứng khoán với tư cách là một thể
invest to reach their economic chế là nơi mọi người thực hiện đầu tư
objectives. This institution's nhằm đạt được các mục tiêu kinh tế
presence: của mình. Sự hiện diện của thể chế
a. Makes the price of stocks này:
5
increase. a. Làm cho giá của cổ phiếu tăng lên.
b. Assists predict stock earnings. b. Giúp cho việc dự đoán được thu
c. Helps everyone joining get nhập từ cổ phiếu.
money c. Giúp cho tất cả mọi người tham gia
d. Brings buyers and sellers vào thị trường chứng khoán đều kiếm
of stocks together. được tiền
d. Mang người mua và người
bán cổ phiếu lại với nhau.
The producers of ABC swimsuits run Các nhà máy sản xuất đồ bơi của
their manufacturing plants day and ABC hoạt động hết công suất cả ngày
night, but it is still impossible to nhưng vẫn không thể sản xuất đủ số
produce enough swimsuits to meet lượng đồ bơi đáp ứng nhu cầu thị
demand. If ABC manufacturers trường. Nếu ABC không thể tăng sản
cannot lift production while demand lượng sản xuất trong khi nhu cầu vẫn
6
continues to rise, the price of ABC tiếp tục tăng thì giá đồ bơi ABC sẽ:
swimsuits will: a. Giữ nguyên
a. Remain constant b. Giảm
b. Decrease. c. Tăng
c. Increase. d. Không thể dự đoán được
d. Cannot forecast.
Trang 45
If the interest rates charged by Nếu lãi suất tiết kiệm niêm yết bởi các
banks increase from 4% to 7%, ngân hàng tăng từ 4% lên 7%, điều gì
which of the following will most sau đây sẽ có nhiều khả năng được
likely be encouraged to happen? khuyến khích xảy ra nhất?
a. Businesses will borrow money a. Các doanh nghiệp sẽ vay tiền
7
from banks to invest. ngân hàng để đầu tư
b. People will open saving b. Người dân sẽ mở tài khoản
accounts tiết kiệm
c. People will buy house c. Người dân sẽ mua nhà
d. All of the above d. Tất cả các phương án trên
Products and services supplied by Hàng hoá và dịch vụ được nhà nước
government often benefit: cung ứng thường có lợi cho:
a. Firms with costs born by a. Các doanh nghiệp với chi phí do
consumers người tiêu dùng gánh chịu
b. Only those who pay for these b. Chỉ những người trả tiền mua
8 products and services. những hàng hoá và dịch vụ đó
c. Many people at a time no c. Nhiều người cùng một lúc,
matter they have paid for bất kể họ có trả tiền cho những
them or not hàng hoá và dịch vụ đó hay
d. Nobody không
d. Không ai cả
GDP does not count illegally GDP không tính hàng hoá được sản
produced and sold items and those xuất và tiêu thụ trái phép, cũng như
produced and consumed at home hàng hoá được sản xuất và tiêu dùng
because tại nhà, bởi vì:
a. Their quality is too low to a. Chất lượng của chúng quá thấp để
contribute value to GDP đóng góp giá trị vào GDP
9 b. These items are not listed in b. Những mặt hàng này không được
income tax forms kê khai trong bản khai thuế thu nhập
c. The production and consumption c. Việc sản xuất và tiêu dùng các mặt
of these items are not encouraged hàng này không được Nhà nước
by the government. khuyến khích
d. It is not easy to measure d. Rất khó để đo lường chính
them xác giá trị những mặt hàng này
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On a monopoly market, the demand Một nhà sản xuất độc quyền trên thị
function for good X is Q=80-P, and trường có hàm cầu Q=80-P và hàm
the monopolist’ cost function is sản xuất TC(Q)=Q2. Biết rằng nhả
TC(Q)=Q2. Suppose the monopolist sản xuất này có thể bỏ ra một chi phí
can rent a technological device for a cố định C để thuê một thiết bị công
fixed cost C that would change the nghệ thay đổi hàm sàn xuất thành
10
cost function to TC(Q)=20Q. What TC(Q)=20Q. Chi phí C tối đa mà nhà
is the largest amount of C that the sản xuất nên bỏ ra để thuê thiết bị
monopolist should pay for this này là bao nhiêu?
device?
a. 50 b. 100 a. 50 b. 100
c.150 d. 200 c.150 d. 200
What is the variable which takes the Biến số nào dưới đây có vai trò nổi
the most significant role in bật và quan trọng nhất trong việc lý
accounting for huge differences in giải sự chênh lệch lớn về mức sống
standards of living all over the của người dân ở các quốc gia khác
11 world: nhau trên thế giới:
a. Productivity. a. Năng suất lao động.
b. Population. b. Dân số.
c. Preferences. c. Sở thích/Thị hiếu tiêu dùng.
d. Prices. d. Giá cả.
At the end of this school year, you Cuối năm học này, em cần giúp bố
need to help your parents to estimate mẹ dự trù tổng chi phí học tập cho
your total learning cost for the năm học sau. Khi tính tổng chi phí
following school year. When you cho năm học tiếp theo, em đang vận
calculate the total expenses for the dụng chức năng nào của tiền?
12 next academic year, which function a. Một phương tiện trao đổi.
of money do you apply? b. Một phương tiện cất giữ giá trị.
a. A medium of exchange. c. Một thước đo giá trị.
b. A store of value. d. Tất cả những chức năng trên.
c. A measure of value.
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We calculate the consumer price Chúng ta tính toán Chỉ số giá tiêu
index (CPI) in order to: dùng CPI nhằm mục đích để:
a. Control changes in the level of a. Kiểm soát sự thay đổi của mức giá
wholesale prices in the economy. bán buôn trong nền kinh tế.
b. Monitor changes in the cost b. Giám sát sự thay đổi trong
13
of living over time. chi phí sinh hoạt theo thời gian.
c. Observe changes in the level of c. Theo dõi sự thay đổi mức GDP thực
real GDP over time. tế theo thời gian.
d. Supervise changes in the stock d. Giám sát sự thay đổi trên thị trường
market. chứng khoán.
From year 2019 to year 2020, Từ năm 2019 đến năm 2020, giả sử
suppose the nominal GDP of country GDP danh nghĩa của Việt Nam tăng
Vietnam increased from 3,421 USD từ 3,421 USD lên $ 3,521 USD, trong
to 3,521 USD, while the GDP khi chỉ số giảm phát GDP tăng từ 262
Deflator rose from 262 to 270. lên 270. GDP danh nghĩa thay đổi
Nominal GDP changed by ____%, ____%, chỉ số giảm phát GDP thay
14
the GDP Deflator changed by ____%, đổi____% và GDP thực tế thay đổi
and real GDP changed by ____%. ____%.
a. 2.92, 3.05, negative 0.13 a. 2.92, 3.05, âm 0.13
b. 100, 8, positive 92 b. 100, 8, 92
c. 2.92, 8, negative 5.08 c. 2.92, 8, âm 5.08
d. 100, 3.05, positive 92 d. 100, 3.05, 92
If Vietnam stopped importing mobile Nếu Việt Nam ngừng nhập khẩu điện
phones from Country A, who would thoại di động từ Quốc gia A, ai sẽ là
be most likely to benefit? người có lợi nhất?
a. Mobile phone a. Các nhà sản xuất điện thoại
manufacturers in Vietnam. di động tại Việt Nam.
15 b. Consumers in Vietnam. b. Người tiêu dùng tại Việt Nam.
c. Mobile phone manufacturers in c. Các nhà sản xuất điện thoại di
Country A. động ở Quốc gia A.
d. Both Mobile phone d. Các nhà sản xuất điện thoại di
manufacturers in Vietnam and in động ở cả Việt Nam và Quốc gia A
Country A would gain equal benefit. sẽ được lợi như nhau.
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VEO
Which of the following DOES NOT Yếu tố nào dưới đây KHÔNG góp
contribute to income inequality? phần tạo nên bất bình đẳng thu nhập:
a. Differences in ability and training a. Chênh lệch về khả năng và trình độ
b. Differences in job tastes đào tạo
16
c. Differences in property ownership b. Khác biệt trong sở thích nghề nghiệp
d. Government transfers (also c. Chênh lệch trong tài sản sở hữu
called transfer payments or d. Các thanh toán chuyển
simply transfers) nhượng của Chính phủ
Hung's utility function (u) for tea (T Hàm lợi ích của Hưng (u) cho trà (gọi
as quantity of tea) and coffee (C as T là lượng trà) và cà phê (gọi C là
quantity of coffee) is u(T,C)=min(2T, lượng cà phê) là u(T,C)=min(2T, 3C).
3C). Suppose that at the beginning, Biết rằng lúc đầu cà phê đắt hơn 25%
coffee is 25% more expensive than so với trà. Nếu giá trà tăng lên 75%
tea. If tea's price increases by 75%, thì giá cà phê phải giảm đi bao nhiêu
then how much does coffee's price để lựa chọn tiêu dùng tối ưu của Hưng
has to drop so that Hung's optimal không thay đổi so với ban đầu?
17
consumption bundle remains the a. 50%
same? b. 77.5%
a. 50% c. 87.5%
b. 77.5% d. Hưng không thể duy trì mức tiêu
c. 87.5% dùng ban đầu với bất kì mức giá cà
d. Hung cannot purchase the initial phê nào.
consumption bundle regardless of
the coffee price.
Which of the following government Chính sách nào sau đây (nếu được
policies (if being issued) would be ban hành) sẽ thúc đẩy việc sử dụng
most likely to encourage usage of các nguồn năng lượng tái tạo:
renewable energy sources? a. Đầu tư nhiều hơn vào các dự án
a) Invest in more fossil fuel plant nhiên liệu hóa thạch
18
projects b. Trợ cấp và mua lại lượng
b) Subsidize and repurchase năng lượng mặt trời dư thừa từ
excess solar energy from các hộ gia đình
households c. Giảm thuế xăng dầu
c) Lower the fuel tax
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d) Subsidize fossil fuel companies d. Trợ cấp các công ty nhiên liệu hóa
thạch
In one-price shop (where every Trong một cửa hàng đồng giá (tất cả
product is sold at the same price, the mặt hàng có chung một giá nhưng
price may change however), the giá có thể thay đổi), bàn chải đánh
toothpaste and the toothbrush are răng và kem đánh răng có cùng 1 giá
both sold at 1 USD each. Assuming 1 USD. Giả sử hệ số co giãn của cầu
the price elasticity of demand theo giá của kem đánh răng là 2 còn
coefficient of the toothpaste is 2 hệ số tương ứng của bàn chải là 1,
19
while this coefficient of the nếu cửa hàng tạo ra 1 gói sản phẩm
toothbrush is 1, what is the price bán chung hai mặt hàng này với
elasticity of demand coefficient of nhau thì hệ số co giãn của cầu theo
both products selling together as a giá của gói sản phẩm ấy là bao
set? nhiêu?
a. 3 b. 2.5 a. 3 b. 2.5
c. 2 d. 1.5 c. 2 d. 1.5
A factory employs x skilled labors, y Một nhà máy sử dụng x lao động tay
unskilled labors and z machines to nghề cao, y lao động tay nghề thấp
produce shoes. Assume that the và z máy để sản xuất giày. Giả sử
factory's budget is 200,000 USD vốn hàng tháng của nhà máy là
per month, average machine's 200,000 USD, chi phí vận hành mỗi
monthly maintenance cost is 1,000 máy là 1,000 USD và chi phí tuyển
USD each and the average costs to dụng trung bình của lao động tay
employ skilled and unskilled labors nghề cao và lao động tay nghề thấp
20 are 2,000 USD and 1,000 USD lần lượt là 2,000 USD và 1,000 USD.
respectively. If the production Nếu hàm sản xuất của nhà máy là
function is P(x,y) = P(x,y) = x^(2/3)y^(1/3)z^(1/3) thì
x^(2/3)y^(1/3)z^(1/3), what is the nhà máy nên tuyển bao nhiêu lao
optimal number of skilled labor động tay nghề cao để tối ưu sản
should be employed such that the lượng?
production output is maximized? a. 75 b. 60
a. 75 b. 60 c. 50 d. 45
c. 50 d. 45
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STT Câu hỏi - Đáp án Hướng dẫn giải
Consider a market of 2 firms with similar When collude, each firm's

constant marginal cost. The demand function output is (80-C)/4, where C
is Q=80-P. Initially the 2 firms collude to is marginal cost. If firm 1
maximize the sum of their profits. Suppose cheats and firm 2 maintains
now that firm 1 cheats and maximizes its the same level of output, firm
own profit while knowing that firm 2 still 1 finds Q to maximize Q(80-
1 produces the same level of output. What is Q-(80-C)/4-C), or new
the change in firm 1's output compared to Q=3*(80-C)/8, which is 1.5
before? (Q: Quantity; P: Price) times old Q. Thus, output
a. Decrease by 50% increases by 50%.
b. Increase by 50%
c. Decrease by 75%
d. Increase by 75%
Supply factors in economic growth DO NOT
comprise:
a. full employment
2
b. development of technology
c. the size and quality of the labor force
d. the stock of capital
Game theory is the study about:
a. How to manage production at the lowest
cost.
b. The impacts of individuals'
3 decision makings having on others'
actions .
c. How to manage a financial portfolio to
reduce or avoid risk.
d. How to play a video game.
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What will a corporation's stockholders lose

if it goes bankrupt:
a. their stock's value only
b. their stock's value in addition to all other
business assets of their possession
4
c. their stock's value in addition to all other
personal assets of their possession
d. their stock's value in addition to all other
business assets and personal assets of their
possession
Which of the following will most likely be
encouraged to happen if the government of
your city establishes the highest rental fee
landlords can charge?
a. Everything will remain unchanged.
b. The number of available flats will exceed
5
the number of people who want to rent.
c. The number of people who want to
rent will exceed that of available
flats.
d. The number of available flats will be equal
to those want to rent.
Which is the term that best describes the
number of unemployed people an economy
normally experiences?
6 a. typical rate of unemployment.
b. average rate of unemployment.
c. cyclical rate of unemployment.
d. natural rate of unemployment.
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As soon as purchasing a car that has

airbags, Minh starts to drive riskily. Which
problem does this case illustrate:
7 a. free-rider problem
b. principle -agent problem
c. adverse selection problem
d. moral hazard problem
GDP (Gross Domestic Product) comprises of
approximate value calculations of which of
the following non-market goods or services?
a. the estimated rental monetary
worth of owner-occupied homes
8
b. the monetary worth of unpaid housework
c. the monetary worth of vegetables and
other foods that people grow in their
gardens
d. All of the above are included in GDP.
If all banks offer the reserve ratio of 25 The new money in the
percent, then new reserves of 3 million VND economy is: 3 : 25% = 12.
(Vietnamese Dong) can generate:
a. 6 million VND of new money in the
economy.
9 b. 750,000 VND of new money in the
economy.
c. 12 million VND of new money in
the economy.
d. 7.5 million VND of new money in the
economy.
When the economy experiences high
inflation, which of the following are most
10
likely to be benefitted?
a. People who live on a fixed income.
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b. Banks that loaned money at a fixed interest

rate.
c. People who borrowed money at a
fixed interest rate.
Which of the following must be correct in the
context of a closed economy, national
saving is positive?
a. Either public saving or private saving must
be positive.
11
b. Investment is greater than zero.
c. National income (GDP) is greater than the
sum of Consumption and Government
Spending
d. All of the above are correct.
What is the fundamental economic
argument to achieve more income equality?
a. an equal distribution of income is the
logical outcome of any tax-transfer
program.
b. citizens are also entitled to economic
equality due to the fact that they enjoy
12
political equality.
c. a more equal distribution of income will
likely to maximize incentives to work, invest,
and assume risk.
d. a more equal distribution of a
given amount of income will make
the total utility of consumers go up.
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Assume that new plastic and recyclable

plastic are close substitutes. Which of the
following will be the consequence of a tax
increase on original resources used to make
plastic containers?
a. the demand for recyclable plastic
13 will increase
b. the demand for recyclable plastic will
decrease
c. the supply of recyclable plastic will
decrease
d. the equilibrium price of recyclable plastic
will be reduced
Hanh’s Bakery offers a discount of 40% if a Denote monthly spending by
customer pays the 50,000 VND (Vietnamese S. If pay the monthly fee,
Dong) monthly fee. What is the minimum then the monthly spending
monthly spending at the shop so that this becomes 0.6S+50000. The
14 purchase is worthwhile? purchase makes sense if
a. At least 75,000VND 0.6S  50000  S , or
b. At least 100,000VND S  125000 .
c. At least 125,000VND
d. At least 150,000VND
Which of the following statements is NOT
TRUE about a non-discriminating monopoly?
a. The marginal revenue increases as
the monopoly produces more
outputs.
15
b. If marginal revenue is greater than
marginal cost, the monopoly should increase
output.
c. The monopoly must lower the price on all
outputs to sell additional outputs.
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d. Relative to a perfectly competitive market,

the monopoly produces less output at a
higher price.
A father wants to divide 100 gold bars Apply Game Theory

among his 2 daughters. He asks each of
them to whisper to him the number of gold
bars she wants (an integer between 0 and
100), without the other knowing. If the total
16 number of bars the 2 daughters ask for is
greater than 100, then both of them receive
nothing. How many Nash equilibria are
there in this game?
a. 0 b. 1
c. 101 d. 102
Define the average variable cost (AVC) to Price = P constant because
produce Q outputs as C(Q)/Q, where C(Q) firm X is perfectly
is the total cost function; MC is Marginal competitive. At optimal
Cost. Suppose that a perfectly competitive output Q 0 , MC  P , and
firm X can generate positive profit, then at its since profit is positive
17
optimal output: PQ 0  C Q 0  0
 
a. MC > AVC
or
b. MC < AVC
P  AVC  MC  AVC
c. MC = AVC
d. Impossible to determine
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VEO
The table represents market demand Q for

bread at different prices P.
Q (Unit: Loaf) 150 170 250 290 310
400 450 600
P (Unit: USD) 330 305 255 210 185
18 130 100 85
The bakery’s unit cost of bread is 25 USD.
Based on this information, how many loaves
of bread should the bakery make?
a. 150 b. 170
c. 250 d. 450
The 2,000 USD (United States Dollar) face Use bond formula to solve
value US (United States) government bond
has a coupon rate of 6%, with interest paid
annually, and matures in 10 years. If the
19 bond is priced to yield 8%, which of the
following is closest to the bond's present
value?
a. 1,250 USD b. 1,500 USD
c. 1,750 USD d. 2,000 USD
A taxi driver bought a car for 500 million The problem is about finding
VND (Vietnamese Dong) that has an IRR, the students can use IRR
expected useful life of 5 years. He is calculator or plug in the
expected to earn 120 million VND annually value to find the answer.
for the next 5 years. What is the maximum
20
discount rate such that this purchase is
desirable for the driver, assuming he is
rational?
a. 5% b. 6%
c. 7% d. 8%
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the minimum grade of 5 will be excluded.
Good luck!
Question 1. “COVID-19 vaccine as a good” (30 points)

In this task, please read the passage and answer the following questions related to
COVID-19 vaccine. Reading Passage has five sections A-E.
A
Developing and distributing a safe and effective SARS-CoV-2 (COVID-19) vaccine
have garnered immense global interest. Less than a year after COVID-19 was
declared a pandemic, several vaccine candidates had received emergency use
authorization across a range of countries. Despite this scientific breakthrough, the
journey from vaccine discovery to global herd immunity against COVID-19 continues
to present significant policy challenges that require a globally collaborative response.
B
In the process of producing and allocating COVID-19 vaccines all over the world,
international organizations/ country unions/ countries/ economists/scientists around
the world are having two opposing opinions around the question "Is COVID-19
vaccine a global public good?”. Some (such as The World Health Organization
(WHO) and The European Union (EU)) think that COVID-19 vaccines are global
public goods; others (such as World Health Assembly (WHA) and The United States)
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argue that it is not possible to confirm that COVID-19 vaccines are public goods
worldwide.
C
In Vietnam, in response to the ongoing pandemic, the Government has also launched
the COVID-19 vaccination campaign with several timely financing and distribution
policies. The Government and National Ministries of Vietnam are in charge of
purchasing, importing, receiving donated vaccines, managing and using COVID-19
vaccines in 2021 for people aged 18 and above.
D
Regarding Financing policies, Vietnam maintains three sources of funds to purchase
vaccines:
i) The state budget ensuring the vaccination based on decentralization of state
budget which includes the national budget and the local budget.
ii) Aids from domestic and foreign organizations and other legal sources.
iii) Voluntary funding from organizations and individuals that use the vaccines.
In order to mobilize social resources for the purchase and import of vaccines
as well as for research, development and production of domestic vaccines, the
Government has established the National COVID-19 vaccine fund in June 2021.
E
In terms of Distribution policies, vaccines (free of charge) are distributed to prioritized
entities and areas. After that, free vaccines are also delivered to all people to quickly
achieve herd immunity. Then, when the supply is stable, the COVID-19 vaccines will
be distributed in both Expanded Program on Immunization (free of charge) and
Program on Immunization with service fees. This means people will be given free
injections similar to the vaccines in the current Expanded Program on Immunization;
besides, there will also be an additional proportion of vaccines given to those who
can afford it with a service charge.
a. (5 points)
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Please refer to the term “public good” in section B:

- What is a public good? (2 points)
- What are the attributes of a public good? (2 points)
- Give examples (1 point)
b. (10 points)
In section B, one controversial topic is raised: "Is the COVID-19 vaccine a
global public good?”
State and discuss your opinion for the above question.
You should answer:
- What is a global public good?
- In your point of view, are COVID 19 Vaccines global public goods or not?
- Explain your opinion.
- Give examples to illustrate based on facts from reliable sources (such as
practical policies and research evidence)
c. (15 points)
Consider the policies described in sections C – D – E.
c1. (3 points) Indicate the type of goods of COVID - 19 Vaccines in Vietnam in your
point of view.
c2. (4 points) Instead of using State Budget and establishing National COVID-19
vaccine fund to mobilize social resources for financing COVID-19 vaccines, why does
the government not print more money at its disposal to cover all the expenses in
financing for COVID-19 Vaccine?
In terms of economics, what would happen if government did that?
c3. (8 points) Imagine that Vietnam only maintained ONE way to distribute vaccines,
as opposed to the combined solutions as at present. Consider two possible scenarios
described below.
- Scenario 1: Vaccine is financed and distributed freely as per “Invisible Hand”
Theory and the principle of “First come, first serve” without Government’s intervention.
The Government loosens all the regulations in financing and distribution of vaccines
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and let access to vaccine depend on demand and supply as well as financial ability
of sellers and buyers.
In this case, what would happen in terms of economics? Give short explanation.
- Scenario 2: Vaccine is distributed only by the Government, using State
Budget, and free of charge for everyone. There is no mechanism for Program on
Immunization with service charge for people who can afford.
In this case, what would happen in terms of economics? Give short
explanation.
Solution
a.
Marking
Answer
scheme
What is a public good? (2 points)
Public good is good of which consumption by one individual State the full
does not reduce the utility and benefits that good provide to definition – 1
others. point
Public good can be pure or impure Inference from

Pure Public good has all 2 basic attributes definition – 1
Impure Public good has 1 attribute point
What are the attributes of a public good? (2 points)
Pure Public good has all 2 basic attributes 1

point/attribute
 – Nonrivalrous means that one individual’s enjoyment of the
good does not diminish the amount of the good available to
1 point
others. .
– Nonexcludable means one cannot exclude individuals

from enjoying its benefits when the good is provided
1 point
Give examples (1 point)
national defense 1 point
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radio and television broadcast signals

clean air.
b.
Students can have one of 3 answers: Answer 1 or Answer 2 or Answer 3
Answer 1: COVID-19 vaccine is a global public good (10 points)
Marking
Answer
scheme
Explain “What is a global public good?” 1 point
- A global public good can involve something that is good
or bad – it is something that can have benefits or costs that
reach the entire world
- Global public goods with good effects: sunlight , open access
publications, standards, guidelines, assessments, coordinating
frameworks, international law
global public goods with bad effects: Global warming
Discuss the opposite view 1 point

Many people think that Drugs and vaccines are often both
rivalrous and excludable – for example, if prices are set so
high that low- and middle-income countries can’t afford to
buy them, or if there are supply issues. However, societal
and political decisions can influence whether or not a good
is made non-excludable.
Prove Covid 19 Vaccines have basic attributes of 3 points

public goods (one or two attributes)
- Practical solutions are being done to make COVID-19
vaccine be non-rivalrous and non-excludable in the
international scale, satisfying the conditions of global public
goods.
- We should consider COVID-19 vaccine a global public
good.
- International organizations, including international
organizations on health, together with governments of
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countries and people around the world are aware of and

have made efforts and taken specific actions to produce and
distribute Vaccine as global public goods. More specifically,
the production and distribution of Covid-19 Vaccines has
the characteristics of a public good. Specifically:
Regarding the propaganda and orientation Argument 1
activities on COVID-19 vaccines: 1 điểm
- UN states the “International cooperation to ensure global
access to medicines, vaccines and medical equipment to
face COVID-19”.
- UNAIDS called for a “People’s vaccine” against COVID-
19 that would be available to everyone, in all countries, free
of charge
- The UN General Assembly resolution ended up including
global public goods as a concept in this way: “the role of
extensive immunization against COVID-19 as a global
public good for health in preventing, containing and
stopping transmission in order to bring the pandemic to an
end, once safe, quality, efficacious, effective, accessible and
affordable vaccines are available…”
Slogan/orientation: Until every country is disease free, no
country will be disease free.
Specific actions and solutions have been Argument 2
implemented: 2 points
- The four main multilateral health funders (the World Bank,
the Global Fund to Fight AIDS, Tuberculosis and Malaria,
Gavi, the Vaccine Alliance, and the WHO) envisioned
three ways to strengthen their multilateral cooperation on
GPGs for health, including COVID-19 Vaccine (Yamey et
al 2018):
+ Improving the production, quality and use of health data
in COVID-19, COVID-19 Vaccine
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+ Accelerating the development and access to health

technologies in low- and middle-income countries,
including Vaccine production technology
+ Strengthening global health security, particularly
epidemic and pandemic preparedness, including fastening
the worldwide vaccinating campaign.
State and analyze about COVAX Argument 3 -
- COVID-19 Vaccines Global Access, abbreviated COVAX
as COVAX, is a worldwide initiative aimed at equitable 1 point
access to COVID-19 vaccines directed by Gavi, the
Vaccine Alliance (formerly the Global Alliance for
Vaccines and Immunization, or GAVI), the Coalition for
Epidemic Preparedness Innovations (CEPI), and the World
Health Organization (WHO).
- It is one of the three pillars of the Access to COVID-19
Tools Accelerator, an initiative begun in April 2020 by the
WHO, the European Commission, and the government
of France as a response to the COVID-19 pandemic.
- COVAX coordinates international resources to
enable low-to-middle-income countries equitable access to
COVID-19 tests, therapies, and vaccines. By 15 July 2020,
165 countries – representing 60% of the human
population – had joined COVAX.
- COVAX provides vaccines to the developing world. A
total of 92 low- and middle-income countries are eligible
to receive COVID-19 vaccines through the COVAX
mechanism through the COVAX Vaccines Advance Market
Commitment (AMC) financing instrument. COVAX AMC is
funded by donor contributions. COVAX AMC funds
the COVAX Facility, the vaccine procurement platform.
- Besides, countries can receive vaccines from COVAX in
the mechanism of SFP: Self-Financing Participants.
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COVAX is principally funded by Western countries.

Although mainly funded by governments ("Official
Development Assistance"), the COVAX scheme is also
funded by private-sector and philanthropic contributions,
and recipient countries may share some costs for vaccines
and delivery.
In addition to COVAX, some developed countries also have Argument 4
their own mechanisms to support and donate vaccine doses 1 point
for other countries. For example, the United States
committed to donate 80 million doses of COVID-19 vaccine
to countries, and plans to donate 500 million doses of
Pfizer's vaccine to nearly 100 lowest-income countries,
Russia committed to transfer production technology of
Sputnik V vaccine to other countries, including Vietnam.
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Answer 2: COVID-19 vaccine is not a global public good (10

points)
Marking
Answer
scheme
- A global public good can involve something that is good
or bad – it is something that can have benefits or costs that
reach the entire world
- Global public goods with good effects: sunlight , open access
publications, standards, guidelines, assessments, coordinating
frameworks, international law
global public goods with bad effects: Global warming
Discuss the opposite view 1 point
- Many people think that COVID-19 Vaccine is global public
good because we need to allocate Vaccine to all the
countries in the world and we are trying to do that by some
actions.
- However, we could not affirm that COVID-19 Vaccine is
global public good
Prove two attributes of public good have not been satisfied Can state the
for COVID-19 Vaccines: point and
direction of
proof
2 points
There is not enough evidence and there is no Argument 1
official international document to confirm this 2 points
The expression ‘public good’ lacked legal clarity. The final
WHA resolution recognizes the role of extensive
immunization, but not vaccines, against COVID-19 as a
global public good for health.
Analyze + Example
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Although some solutions have been implemented Argument 2

such as: COVAX, donation activities, we have only 2 points
partially solved the need for vaccines and a part
of the goal of comprehensive distribution of
vaccines in the world.
Example: COVAX is principally funded
by Western countries. As of 19 February 2021, 30 countries
have signed commitment agreements to the COVAX Facility
as well as the European Union. Although more than $6
billion was pledged, not all of the funding has been
delivered yet. In April, the initiative wrote that it had not yet
received its target of $3.2 billion for 2021
There are still countries that do not participate in COVAX
In conclusion, two attributes of public good have not been Conclusiton on
satisfied for COVID-19 Vaccines: 2 attributes
- Non-rivalrous : the Supply of vaccine is still limited, if one 2 points
is vaccinated, the amount for anyone else will be reduce +
Discuss view.
- Non-excludable: if prices are set so high that low- and
middle-income countries can’t afford to buy them, or if there
are supply issues + Discuss.
Answer 3: Vaccine is both global public good in some aspects

and is not in other aspects.
Marking
Answer
scheme
Two attributes of public good have been satisfied or not for Can state the
COVID-19 Vaccines: point and
direction of
proof
1 point
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Vaccine is a global public good in some aspects (based on Argument 1

attributes of public good) 4 points
Vaccine is not a global public good in some aspects (based Argument 2

on attributes of public good) 4 points
c1.
Students can have one of 3 answers: Answer 1 or Answer 2 or Answer 3
Answer 1: COVID-19 vaccine is a public good
Marking
Answer
scheme
COVID 19 Vaccines in Vietnam are treated as Public Good State the point
1 point
COVID 19 Vaccines in Vietnam are Prove and
- Nonrivalrous: one individual’s enjoyment of the vaccine does argue based
not diminish the amount of the vaccine available to others on 2 attributes
– Nonexcludable means one cannot exclude individuals 2 points
from enjoying its benefits when the vaccine is provided
Because government is in charge of distributing; vaccines are
distributed to prioritized entities and areas and then to all
people to soon achieve herd immunity. Vaccine is financed by
state budget and mutual fund
Answer 2: COVID-19 vaccine is not a public good
State the point - 1 point

Prove and argue based on 2 attributes (Nonrivalrous & Nonexcludable) - 2
points
Answer 3: Vaccine is both public good in some aspects and is

not in other aspects.
State the point - 1 point

Prove and argue based on 2 attributes (Nonrivalrous & Nonexcludable) - 2
points
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c2.
Marking
Answer
scheme
Because this policy would lead to many negative effects to the State the point
economy. 1 point
Print money to produce vaccine domestically The
High inflation consequences of
If the Money Supply increases faster than real output printing money
then, ceteris paribus, inflation will occur. for domestic
If you print more money, the amount of goods doesn’t change. production
However, if you print money, households will have more cash
1.5 points
and more money to spend on goods. If there is more money
chasing the same amount of goods, firms will just put up
prices.
The Quantity Theory of Money
The Quantity theory of money seeks to establish this
connection with the formula MV=PY. Where
 M= Money supply,
 V= Velocity of circulation (how many times money
changes hands)
 P= Price level
 Y= National Income (T = number of transactions)
If we assume V and Y are constant in short-term, then
increasing money supply will lead to increase in price level.
Printing money and spending on import of Vaccine The

- depreciation consequences of
print money and spend it on imports, you would see a printing money
significant depreciation in the exchange rate for import
The government can print money VND to buy imported vaccine
vaccine, they increase supply of VND on the foreign
exchange, leading to a lower value of VND. 1.5 points
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With a big increase in import spending, there would also be

a deterioration in the current account.
- imported inflation
The problem of the depreciation in the exchange rate is that it
would lead to imported inflation. The price of imports rises
and this contributes to cost-push inflation leading to lower
living standards. There would also be a concern that a
depreciation in the exchange rate may cause exporters to
have less incentives to cut costs and improve efficiency
- adverse impact on market confidence
The government printed significant amounts of money to buy
imports, it would discourage foreign investors from holding
VND. Because foreign holders of VND would see a fall in the
value of their VND investment.
c3.
- Scenario 1:
Marking
Answer
scheme
Inequality in access of vaccine: Consequences 1

In order to maximize efficiency, production and consumption 2 points
should occur at the point where marginal benefit and
marginal cost are equal. The cost of providing a public good
to an additional user is zero. This means that additional units
should be provided free of charge. Firms, however, are in
business to make money. In order to remain open, they must
charge some positive price for the good. This price means that
consumption will occur at a point where marginal benefit
exceeds marginal cost. Only people who have money can buy
vaccine. The vulnerable cannot access vaccine – Inequality
Inefficiency and loss will be imposed on society. Consequences 2
Efficiency in disease eradication can’t be achieved – Negatively 2 points
affected labor force, demand, supply – Economic loss
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- Scenario 2:
Marking
Answer
scheme
Free Rider Problem Consequences 1

Once a public good is provided it is available for all to 2 points
consume. This means that people have an incentive to hide
their true preferences for the good. As more and more
individuals engage in this preference-hiding behavior,
efficient market provision will fail. Insufficient quantity of the
good is provided by the market.
Burden on national budget, inefficiency in using Consequences 2
state budget- Budget deficit 2 points
In this case, we could not mobilize social resources for the
purchase and import of vaccines as well as for research,
development and production of domestic vaccines. This lead
to burden on state budget.
Question 2. “Some impacts of COVID-19 on the Vietnamese economy” (30 points)

The COVID-19 pandemic has affected and brought many changes to the
Vietnamese economy, compared to the time point before outbreak of pandemic. There
are other changes also forecasted by experts to take place in the future, some of which
are described below.
a. (10 points) Affected industries

In August 2020, data from the Business Registration Administration (Ministry
of Planning and Investment of Vietnam) announced that the three industries that had
been affected most negatively since the outbreak of the disease, shown in the number
of businesses that have been suspended due to the impact of the epidemic and the
decrease in the number of newly established businesses compared to the same period
in 2019 are: Arts and entertainment; Accommodation and catering services;
Education and training.
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b. (10 points) Fall in the banking interest rates, compared to 2019

Throughout 2020, almost all levels of banking interest rates in Vietnam had
gradually decreased compared to 2019. Specifically, there are 3 time points of
simultaneous decrease:
March, May, and October 2020. Some types of decreased interest rates in
2020 include:
- Discount rate (2.5%/year)
- Supplying capital interest rate (4%/year).
- Deposit interest rate in Vietnam Dong for demand deposits and all term
deposits
- Short-term lending interest rate in Vietnam Dong (5.0%/year)
c. (10 points) Increasing inflation rate Up to the present time (June 2021), in the
context that the COVID-19 vaccines have been produced and distributed more widely
in many countries, the world economy has started to enter a recovery phase, the
inflation rate in Vietnam is expected to increase in the second half of 2021.
Please explain why and how COVID 19 can be the cause of this change.
Note: you should pay attention and refer to specific time points stated in each question
when planning your response.
Solution
a.
Marking
Answer
scheme
Reason 1: changing habit 3 points

Covid 19 makes consumers change some spending and living
habits, including minimize/reducing habits like enjoying live
art in crowded places, traveling and relaxing, and offline,
face-to-face learning - decrease in preference + Decrease in
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the number of consumers – Shifts the demand curves of the 3

industries to the left
Reason 2: Government policy 3 points
The government issued a social distancing policy to limit the
spread of the disease, which means fewer people use some
service industries, including the 3 listed industries – Demand
curve shifts to the left
Reason 3: Income decrease 3 points
Consumer income generally falls in the overall downtrend of
the economy - Shifting the demand curve to the left
Link to Supply and Demand 1 point
The demand of the three industries mentioned above
decreased significantly due to the demand curve shifting to the
left, the supply curve remaining the same - prices and output
fell - businesses did not make profits to cover costs -
shrinking/reducing production, even going bankrupt.
b.
Answer Marking
scheme
Profitability of bank 3 points

Explain profitability of banks (based on interest
rates they charge)/Explain the interest rate system
of the bank
Like all businesses, banks profit by earning more money than
what they pay in expenses. The major portion of a bank's
profit comes from the fees that it charges for its services and
the interest that it earns on its assets. Its major expense is the
interest paid on its liabilities.
The major assets of a bank are its loans to individuals,
businesses, and other organizations and the securities that it
holds, while its major liabilities are its deposits and the money
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that it borrows, either from other banks or by selling

commercial paper in the money market.
Banks increase profits by using leverage, including leverage
between Deposit interest rate and Lending interest rate
Explain Covid 19 make 2 types of interest rate 3.5 points
decrease
Reason 1: Many industries are negatively affected
(Answer 2a) – the number of banks’ customers decrease –
demand of borrowing money decrease – lending interest rate
decrease
Lending IR decreases – make deposit IR decrease to ensure the
banks get profit
Reason 2: The Government policy to decrease 3.5 points
lending interest rate to support firms and industry
The State Bank of Vietnam has sent an official letter requesting
banks to reduce interest rates and support borrowers against
the effects of the COVID-19 pandemic.
c.
Marking
Answer
scheme
Reason 1: Input price increase 3 points

In order to boots economy after pandemic, demand for input
increase - Gasoline, construction material and food prices
have also started to rise around the world and are likely to put
pressure on domestic raw material prices to increase -
consumer prices increase - inflation increases
Reason 2: Government inject money 3 points
In the trend of stimulating the economy to recover after the
pandemic, governments in the world often inject more money
into the economy or have policies to support businesses with
support packages and low interest rates - increasing the
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money supply - leading to the possibility of inflation in the

world (answer 1c1)
Reason 3: Demand pull 3 points
The Demand for goods and services, especially the essential
goods increases drammatically. This leads to inflation.
Conclusion 1 point
In Vietnam, the Government is and will be likely to loosen
monetary policies for economic growth also.
From domestic policies and the risk of importing inflation from
abroad, inflation in Vietnam in the last 6 months is likely to
increase.
Question 3 (30 points)

A city is asking every one of its 1000 residents to contribute a fixed amount of
money toward a COVID-19 vaccine fund. Suppose that vaccine will be provided to
the city if and only if at least k people contribute, where 2<=k<=1000. Also, the
contributions are not refunded even if the vaccine is not provided. Each person's
ranking of outcomes is as follows:
5) vaccine is provided and not having to contribute
6) vaccine is provided and having to contribute
7) vaccine is not provided and not having to contribute
8) vaccine is not provided and having to contribute.
a. (9 points)
Suppose you are one of the residents and you know that exactly m of the other
999 residents have contributed. What would you do and why?
b. (21 points) Find all Nash equilibria.
Solution
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a. If m>=k: because the vaccine will be provided anyway, you should just not
contribute (i.e. outcome 1). (3 points)
If m=k-1: you should contribute to get the vaccine provided (outcome),
otherwise the vaccine won't get provided (outcome 3) (3 points)
If m<k-1: the vaccine will not be provided anyway, so you should just not
contribute (i.e. outcome 3). (3 points)
b. Question a gives the best response function of all 1000 residents. First we
will show that every outcome with exactly k residents contributing is a Nash
equilibrium. (3 points)
Indeed, in that setting, if you're one of the contributor, you would not want to
withdraw your contribution because then there are only k-1 contributions and the
vaccine will not be provided (go from outcome 2 to outcome 3) (3 points).
If you're not one of the contributor, then by question a you would not want to
change your decision to contribute. Thus, it's a Nash equilibrium (3 points).
Another equilibrium is when no one contributes. Clearly, no one can be better
off by changing decision because the vaccine won't be provided anyway. (6 points)
If there are m>=1 contributors where m#k, then any of the contributor can be
better off by not contributing. (6 points)

Schumacher is an expected-utility maximizer who is also a racing boy, so his
probability of an accident is 2/3. Schumacher’s utility function based on wealth is
u w  w . Suppose that Robert’s initial wealth is 400 USD. If Robert has an
 
accident, he incurs a 204 USD loss.
a. (6 points) Calculate Schumacher’s expected utility?
b. (6 points) Now, there is one insurance company called Insurance Experts

Organization (IEO) with one policy available: Full insurance. IEO charges a fixed
premium and then pays Schumacher 204 USD if he gets in an accident. If the
insurance company is risk neutral, what is the premium π they need to charge to
break even?
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c. (6 points) Compute the expected utility for Schumacher if he purchases the

insurance at premium π and decide whether Schumacher will purchase the insurance?
u w  be the absolute risk aversion function of the utility function

d. (12 points) Let
u  w 
u. Show that as Schumacher becomes richer, his absolute risk aversion decreases,
given u w  w , w  0 .
 
Solution
1 2 1 2
a. Schumacher’s expected utility is  400  400  204   20   14  16
3 3 3 3
(6 points).
b. The company’s profits are given by the premium, minus the reimbursement for the
loss in case the loss occurs: π − 2/3 x 204 (3 points). Since profits must be zero, we
obtain π = 204/3 = $136. (6 points).
c. If Schumacher takes the insurance, he has utility u 264 . 
- Since the utility under insurance ( 264 ) is higher than without insurance (16),
Robert purchases the insurance. (6 points)
d. We have
3
 3 2.5 0.5 

w  0.5w  ( 0.25w )
2 2
u''' w u' w  u''(w)2
    
8

RA w '
    
u'(w)2

1
(0.5w ) 2 2
3 3 w 3
w 
16 16  1 w  0 .

0.25w 1
2w 2
 
Hence as Schumacher becomes richer, his absolute risk aversion decreases.
(12 points)
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Suppose a perfectly competitive market has the following demand function

Q(P)=80-P. There are no barriers to entry and exit in this market, and assume that
every firm has the same cost function. A long run equilibrium consists of a price P*,
quantity of output Q*, and the number of firms N such that:
i) Q* maximizes each firm's profit at price P*.
ii) Market clears: demand equals supply Q(P*)=NQ*.
iii) No firm has the incentive to enter or exit the market.
a. (10 points)
maximum profit must be 0.
b. (20 points)
Assume the firms' cost function is C q  (0.5q)2  20q  18 . Find the long run

equilibrium (P*, Q*, N).
Solution
a. (10 points)
maximum
profit must be 0.
- No firm can earn negative profit because then it has the incentive to exit the
market at no cost and earn zero profit instead. Suppose there is a firm A earning
positive profit. Then, because entry is free, other firms will try to enter the market,
driving down A’s price and profit. This will go on until A’s profit reaches 0.
b. (20 points)
Assume the firms' cost function is C q  (0.5q)2  20q  18 . Find the long run

equilibrium (P*, Q*, N).
- Each firm’s profit as a function of its output Q* is
2
 Q*  Q*P*  C Q*  Q* 80  NQ*  0.25 Q*
         20Q*  18
- Maximizing this profit function with respect to Q* yields
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30
N  0.25
Q*
- Next, from part a. we know that each firm’s maximum profit must be 0.
Hence
2
Q* 80  NQ*  0.25 Q*
     20Q*  18  0
30
Substituting N   0.25 into the above equation, we get
Q*
2
Q* 50  0.25Q*  0.25 Q*
     20Q*  18  0  Q*  0.6
30
- It follows that N   0.25  50 , and P*  80  NQ *  50.15 .
Q *
---------------------------------------------
Marking Rule:
0 pt – no answer, wrong answer
Half of total points – partially correct answer that contains some necessary elements
to explain
Full points – full answer with detailed analyzed and discussion.
Answers that are not mentioned in this Model can be discussed by the Jury.
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VIETNAM ECONOMICS OLYMPIAD (VEO) 2022
Thông tin các vòng thi
Bảng 2. Thông tin các vòng thi VEO 2022
STT Thông tin Vòng 1 Vòng 2 Vòng 3

01 Mô tả 30 câu hỏi trắc 20 câu hỏi trắc Phỏng vấn cá nhân
nghiệm nghiệm & 5 câu 5-10 câu hỏi
hỏi mở/tự luận ngắn/thí sinh
02 Hình thức - Cá nhân - Cá nhân - Cá nhân
thi - Trực tuyến - Trực tuyến - Trực tuyến
03 Số lượng Top 100 thí sinh 15 thí sinh có điểm
thí sinh có điểm cao nhất cao nhất ở Vòng 2
ở Vòng 1
04 Thời gian 45 phút 150 phút 15 phút/thí sinh
05 Ngôn ngữ Tiếng Việt & Tiếng Anh Tiếng Anh
dự thi Tiếng Anh
06 Cách tính +4 điểm cho 1 - Trắc nghiệm: Tiêu chí đánh giá
điểm câu trả lời đúng, +4 điểm cho 1 - Kiến thức chuyên
-1 điểm cho 1 câu trả lời đúng, ngành Kinh tế
câu trả lời sai -1 điểm cho 1 - Tư duy phản biện
không trả lời câu trả lời sai, - Kỹ năng Tiếng
không được điểm không trả lời Anh và Thuyết trình
không được điểm
- Tự luận: Chọn
4/5 câu để trả
lời; 30 điểm/câu;
tính điểm 4 câu
07 Điểm tối đa 120 200
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VEO
Đề thi Vietnam Economics Olympiad – VEO 2022
Question 1
Which of the following would NOT be an opportunity cost of your summer holiday to
Nha Trang?
a. the amount of money you could have earned if you took a summer job instead
b. the cost of the airline ticket(s) to Nha Trang
c. the cost of the ticket to Tri Nguyen Aquarium in Nha Trang
d. the rent you pay for your accommodation in Hanoi even though you do not stay
there during your summer holiday
Question 2
The economic philosopher who is recognized to found modern Macroeconomics?
a. Nicolas Gregory Mankiw b. Milton Friedman
c. Adam Smith d. John Maynard Keynes
Question 3
If a country's real GDP (gross domestic product) grows at an annual rate of 2%, after
roughly _____ years, this country's real GDP will double.
a. 25 b. 30 c. 35 d. 40
Question 4
In a full-employment economy, a high rate of growth requires:
a. a low rate of saving and a low rate of investment
b. a high rate of saving and a low rate of investment
c. a high rate of saving and a high rate of investment
d. a low rate of saving and a high rate of investment
Question 5
Look at Table below
B’s price policy
High Low
A: 20 A: 10
A’s High
B: 20 B: 30
price
A: 30 A: 15
policy Low
B: 10 B: 15
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The Nash equilibrium in the game is:

a. (High, High) b. (High, Low) c. (Low, High) d. (Low, Low)
Question 6
Choose the statement which is NOT TRUE?
a. Common card games are an example of game theory.
b. Perfect competition is an example of game theory.
c. One example of game theory is Oligopoly.
d. An example of game theory is Auctions.
Question 7
What is TRUE for a bank in a fractional-reserve banking system:
a. The bank does not make loans.
b. The bank keeps only a fraction of its deposits in reserve.
c. The bank holds only a fraction of its reserves in deposits.
d. The bank does not receive deposits.
Question 8
The costs of producing 1, 2, 3, and 4 units of output are 5$ (United States Dollar),
8$, 10$, and 11$, respectively. The marginal cost of producing the second unit of
output is:
a. 5$. b. 4$. c. 3$. d. 2$.
Question 9
A firm has the following cost function: TC  3Q  5. The firm's average cost would be:
a. 3 b. 4 c. 5 d. 3 + 5/Q
Question 10
The demand company ABC faces for its product is shown in Table below.
Price ($/kg) 6.5 5.5 4.8 4.3 3.9
Quantity 100 150 200 250 300
demanded
(kg)
If it costs this company 2.5$ to produce 1 kg (kilogram) of output, but the company
only sells output in sacks of 50 kg each, what is the optimal quantity the company
sells?
a. 100 kg b. 150 kg c. 200 kg d. 250 kg
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Question 11
Two firms A and B are producing the same quantity of output at the same total cost.
Firm A has lower fixed cost and higher variable cost than firm B. Which of the
following statements is correct?
a. If each firm produces less, their total costs will be equal.
b. If each firm produces more, their total costs will be equal.
c. If each firm produces less, firm A will have lower total cost than firm B will.
d. If each firm produces more, firm A will have lower total cost than firm B will.
Question 12
Refer to Figure below.
When the price is 8$, there is:

a. a surplus of 400 units. b. a shortage of 400 units.
c. a surplus of 200 units. d. a shortage of 200 units.
Question 13
When supply increases, the price _____ and the quantity demanded _____.
a. decreases, increases b. increases, decreases
c. decreases, decreases d. increases, increases
Question 14
There were 5 million face masks demanded at a price of 2$ per piece in 2020. In
2021, the quantity demanded at the same price was 4.5 million face masks. Which
of the following would be most likely NOT the cause of such decrease:
a. a decreased risk of contracting Covid-19 without face masks.
b. a decrease in the price of materials used for producing face masks.
c. abolition of mask requirement in public places.
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d. a decrease in consumers' income if face masks are a normal good.

Question 15
Which of the following statements are correct for both a monopolist and a perfectly
competitive firm?
i) The firm maximizes profits by equating marginal revenue with marginal cost.
ii) The firm maximizes profits by equating price with marginal cost.
iii) The firm's marginal revenue curve lies below its demand curve.
iv) Average revenue equals price.
a. i) and iv) only b. i) ii), and iv) only
c. i), iii), and iv) only d. i), ii), iii), and iv)
Question 16
Antipollution policies include:
a. legislated standards b. emissions fees or taxes
c. market for pollution rights d. all of the answers mentioned
Question 17
Which of the following people is considered unemployed?
a. An's grandmother, who is too old to work.
b. Phuong is not working because she is attending college.
c. Binh was made redundant during the Covid-19 pandemic, he has applied for
several jobs in the past few weeks but has not been successful.
d. Tuan has dropped out of school but he does not want to work.
Question 18
As the consumer price index increases, the typical household in Vietnam
a. can spend fewer Vietnamese Dongs to keep the same living standard.
b. has to spend more Vietnamese Dongs to keep the same living standard.
c. finds that living standard is not affected.
d. can save more to offset the effects of rising prices.
Question 19
Mrs. Nobi lets Nobita and Doraemon share 100 Dorayaki cakes between themselves.
Nobita can make a proposal in which he states the number of cakes he gives
Doraemon (any integer between 1 and 100), the rest belongs to him. Doraemon then
can decide whether to accept or reject the proposal. If Doraemon accepts, the cakes
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will be divided among them as Nobita has proposed, otherwise both of them will
receive nothing. They can make their decision only once and cannot negotiate with
each other. How many Nash equilibria are there in this game?
a. 0 b. 1 c. 2 d. 100
Question 20
Which of the following would result in the greatest increase in the economy’s output?
a. a 50$ million reduction in taxes.
b. a 50$ million increase in taxes.
c. a 50$ million reduction in government spending.
d. a 50$ million increase in government spending.
Question 21
The term that describes the deviation of unemployment from its natural rate is:
a. frictional unemployment. b. cyclical unemployment.
c. the unnatural rate of unemployment. d. structural unemployment.
Question 22
For an asset to become the medium of exchange, it must necessarily:
a. be widely accepted.
b. be declared a legal tender by the government.
c. have intrinsic value.
d. be both widely accepted and declared a legal tender by the government.
Question 23
What is TRUE about "Fiat money"?
a. has value in exchange which is equal to its intrinsic value.
b. is backed by gold
c. is backed by silver
d. is money that does not contain intrinsic value.
Question 24
When calculating the CPI, pork is given greater weight than beef if:
a. consumers buy more pork than beef.
b. the price of pork is higher than the price of beef.
c. it costs more to produce pork than it costs to produce beef.
d. pork is more readily available than beef is to the typical consumer.
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Question 25
Nam consumes only rice and noodles. If rice is a normal good and noodles is an
inferior good, when Nam's income increases, he consumes:
a. more of both goods. b. more rice and less noodles.
c. more noodles and less rice. d. more rice, but the impact on noodles is
ambiguous.
Question 26
The relative prices of two goods X and Y is 2:3. If Minh is consuming the quantities of
X and Y such that MUx/MUy = 3:2, what should Minh do in order to maximize his
utility?
a. Minh should consume more X and less Y.
b. Minh should consume more Y and less X.
c. Minh should consume the same quantities of X and Y as before because he is
already maximizing his utility.
d. Indeterminate from the given information.
Question 27
What is TRUE for a closed economy which has positive investment and a government
deficit?
a. Both private and public saving are positive.
b. Private saving is positive while public saving is negative.
c. Private saving is negative while public saving is positive.
d. Both private saving and public saving are negative.
Question 28
Year P_A Q_A P_B Q_B
2010 1$ 100 4$ 50
2011 2$ 200 5$ 100
2012 3$ 300 6$ 150
P: Price; Q: Quantity. Product A and Product B. The base year is 2010.
What are the nominal GDP in 2010, 2011, 2012 respectively?
a. Nominal GDP 2010 = 300$; 2011=600$; 2012 = 1200$.
b. Nominal GDP 2010 = 300$; 2011=700$; 2012 = 1300$.
c. Nominal GDP 2010 = 300$; 2011=900$; 2012 = 1800$.
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d. Nominal GDP 2010 = 300$; 2011=600$; 2012 = 1800$.

Question 29
2010 1$ 100 4$ 50
2011 2$ 200 5$ 100
2012 3$ 300 6$ 150

What are the real GDP in 2010, 2011, 2012 respectively?
a. Real GDP 2010=300$; 2011=400$; 2012 = 500$
b. Real GDP 2010=300$; 2011=600$; 2012 = 700$
c. Real GDP 2010=600$; 2011=600$; 2012 = 900$
d. Real GDP 2010=300$; 2011=600$; 2012 = 900$
Question 30
2010 1$ 100 4$ 50
2011 2$ 200 5$ 100
2012 3$ 300 6$ 150
The basket of goods used to compute the CPI (Consumer Price Index) consists of 100
units of A and 50 units of B. What are the inflation rate in 2012?
a. 50% b. 200% c. 33.33% d. 43.33%
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Question 1
The world which does not have scarcity of resources would lead to:
a. Zero prices for all goods and services
b. It would be unnecessary to set up markets
c. Everyone would not need to learn Economics
d. All the answers mentioned are correct
Question 2
Assume that the textile and garment industry will be able to produce the same quantity
of output as before if it employs 2 fewer units of labor and 1 more unit of capital,
while the food processing industry will be able to produce the same quantity of output
as before if it employs 1 more unit of labor and 3 fewer units of capital. The total
output of the economy will increase if:
a. 1 unit of labor is shifted from the textile and garment industry to the food
processing industry and 1 unit of capital is shifted from the food processing industry
to the textile and garment industry.
b. 1 unit of labor is shifted from the textile and garment industry to the food
processing industry and 2 units of capital are shifted from the food processing industry
c. 1 unit of labor is shifted from the textile and garment industry to the food
d. All the answers mentioned are correct.
Question 3
The following would lead to a shift in the demand curve for chicken, EXCEPT:
a. a change in tastes for chicken
b. a decrease in the price of pork
c. an increase in the income of chicken consumers
d. a change in the price of chicken
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Question 4
Suppose that rice consumption decreases by 5% in response to a 10% increase in the
price of rice. Such a price increase would cause households to:
a. spend more of their income on rice.
b. spend less of their income on rice.
c. spend the same amount of their income on rice as before.
d. indeterminate from the given information.
Question 5
The adult population of Vietnam must be equal to:
a. the sum of "the employed", "the unemployed" and "labor force" in Asia.
b. "the employed" plus "the unemployed" in Vietnam.
c. the sum of "the employed", "the unemployed" and "not in the labor force" in
Vietnam.
d. the total of "the employed", "the unemployed", "labor force" and "not in the
labor force" of Vietnam.
Question 6
Money has the following functions, EXCEPT:
a. Money makes saving easier.
b. The value of money does not change in inflation times.
c. Money makes it easier to buy and sell goods.
d. Money makes it easier to trade services.
Question 7
The term "money" used by economists means:
a. all wealth.
b. all assets, including real assets and financial assets.
c. all financial assets, but real assets are not regarded as money.
d. those types of wealth that are regularly accepted by sellers in exchange for
goods and services.
Question 8
When the SBV (State Bank of Vietnam) buys government bonds:
a. the money supply does not change.
b. the money supply increases.
c. the money supply decreases.
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d. the money supply decreases and right after that increases.

Question 9
As our national income expands, we would expect:
a. our exports to increase b. our imports to increase
c. our exports to decrease d. our imports to decrease
Question 10
An increase in the demand for Vinfast automobiles will:
a. decrease the supply of rubber
b. decrease the demand for rubber
c. increase the demand for rubber
d. decrease the demand for recyclable newspapers
Question 11
If the budget line shifts from AB to A'B' we can infer that:

a. the price of X has decreased and the price of Y has increased.
b. the price of X has increased and the price of Y has decreased.
c. the prices of both X and Y have increased.
d. the prices of both X and Y have decreased.
Question 12
If potatoes are given away for free, people should consume:
a. an infinite quantity of potatoes.
b. potatoes until the total utility from consuming potatoes decreases to zero.
c. potatoes until the marginal utility from consuming potatoes decreases to zero.
d. no potatoes because utility maximization requires that marginal utility equal
price.
Question 13
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An increase in the cost of a fixed input would cause:

a. the average variable cost to shift upward.
b. the average total cost to shift upward.
c. the marginal cost to shift upward.
Question 14
If a monopolist's fixed cost doubles, this will:
a. double the profit-maximizing price that the monopolist charges.
b. halve the profit that the monopolist earns.
c. lead the monopolist to shut down.
d. not lead to any changes in the profit-maximizing price that the monopolist
charges, provided that it continues its production.
Question 15
As price falls from Pa to Pb, which demand curve represents the most elastic demand?
a. D1 b. D2
c. D d. All of the above are equally elastic.
Question 16
At the same time, what are two things that GDP (Gross domestic product) measures:
a. the total spending of all the people in the economy and the total saving of all
the people in the economy.
b. the total income of all the people in the economy and the total expenditure on
the output of goods and services in the economy.
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c. the value of the economy's output of goods and services for domestic citizens
and the value of the economy's output of goods and services for the rest of the world.
d. the total income of households in the economy and the total profit of firms in the
economy.
Question 17
Assume that one economy consists of 1,500 food-producing companies with the same
revenues and costs. The revenues and costs for each company are shown in the table
below:
Unit: 1,000 VND
Products Revenues Costs
Rice 70 50
Sticky rice 50 20
Noodles 90 40
Corn 60 30
Potato 30 10
GDP of this economy is equal to:

a. 225,000 VND b. 250,000 VND
c. 225,000,000 VND d. 250,000,000 VND
Question 18
2 players, Player 1 and Player 2, have to make their decisions simultaneously without
knowing what the other decides. Player 1 has two strategies, A and B. Player 2 has
two strategies, C and D. Their payoffs are shown in the Table below.
Payoff matrix
Player 2
C D
A 1,3 5,2
Player 1
B 6,2 4,3
How many pure-strategy Nash equilibria are there in this game?

a. 0 b. 1 c. 2 d. 4
Question 19
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A monopolist faces a linear demand function. If its total revenue is maximized at the
price of 12, we can conclude that:
a. The firm's profit-maximizing price is 12 if and only if the marginal cost is zero
at all levels of output.
b. The quantity demanded for its output is zero at any price equal to or greater
than 24.
c. Demand is elastic at any price lower than 12.
Question 20
Mai and Lan are consuming the same quantity of rice. Given that they are purchasing
rice at the same price, if Mai's demand for rice is more elastic than Lan's, then:
a. Mai's consumer surplus is larger than that of Lan.
b. Mai's consumer surplus is smaller than that of Lan.
c. Mai's consumer surplus is equal to that of Lan.
d. It is not possible to compare Mai's consumer surplus with that of Lan given the
above information.
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the maximum grade of 5 will be excluded.
Numbers of firms and people may be only integers.
Good luck!
Question 21
Inflation rate in Vietnam is increasing and is under lots of pressure to continue
increasing in the upcoming time.
a. (10 points) Please state the reasons causing inflationary pressures in Vietnam at
the moment.
Then please explain those reasons using Macroeconomics theory and if relevant,
illustrate by diagrams.
b. Inflation causes negative effects on different sectors of Vietnam's economy. In order
to prevent and control inflation, from now, what policies/solutions can be
implemented by each of the following sectors in the economy:
- Government (10 points)
- Enterprises (5 points)
- Consumers (5 points)
Question 22
A monopolist faces the following demand for its product: QD = 60 - P. Its cost function
is TC = 0.5Q2 + 6Q + 20.
a. (10 points) Calculate the monopolist's profit-maximizing price and quantity.
b. (10 points) Calculate the socially optimal price and quantity.
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c. (10 points) Calculate the deadweight loss caused by monopoly in this case. How
could the government use price controls to bring the monopolist' output quantity to
the socially optimal level?
Question 23
Consider a game theory problem with two players: a driver and a patrol. The driver
violates traffic law.
In that circumstance, the patrol can choose one of the three actions: i) charge a true
amount of fine F and provide the source of legal document for that fine at their cost
of time Cp (action T); ii) charge a correct amount of fine F but do not give any
reference then suggest a bribe B (action B); iii) announce the driver an amount of fine
W higher than the correct amount F without providing any reference. The patrol then
can seize the difference W-F (action W).
Then the driver can choose one of the two actions: i) follow the patrol instruction and
the case is resolved immediately (action f); ii) questioning the patrol (action q), only
pay a correct fine F, and bear the time cost to figure out this correct fine (either Cp in
case that the patrol provide references or Cd otherwise, where Cd > Cp). In the case
that the driver questions the patrol, the patrol also bears the same time cost as the
driver.
The driver and the patrol decide their action to resolve the case simultaneously. Each
party has full knowledge of the other’s possible actions and payoffs in each scenario.
After the case is resolved, it can be randomly selected for further investigation with
the probability of 10%. The further investigation always finds out the truth. If the case
is resolved lawfully by both parties, there will be no additional actions. If the case
was detected as unlawful, the following adjustment will be made:
- If the patrol is corrupted (i.e action B or action W), they are charged a
penalty equal to the factor a multiplied with the money they get from
corruption (that is a factor a multiplied with either the bribe amount B or
the seized amount W-F).
- If the driver follows the patrol request of bribe B, they will not only lose their
bribe B but also need to pay the correct fine F and additional charge of
bribing public officer an amount of b multiply time cost Cq they should have
spent to comply with the law.
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- If the driver follows the patrol request and pays a fine W, they will get back
the difference of their payment and the actual fine W-F.
The patrol and the driver only play pure strategies. Provide answers to following
questions:
a. (7 points) Give the matrix of expected payoff function for the driver and the patrol
as the formula of F,B,W,Cp,Cq,a,b
Hint:
- The expected payoff function of a party is
0.1* (payoff for the party under further investigation) +0.9*(payoff for the party
under no further investigation).
- Payoff for parties need to be written in 6 different outcomes as 6 cells in the
following table with the first place of ( , ) as the payoff for the driver and
second place as payoff for the patrol.
Driver\Patrol T B W
f ( , ) ( , ) ( , )
q ( , ) ( , ) ( , )
b. (8 points) Given that F = $250; B = $150; Cd = $100; W = $300; Cq = $50; b =

16, is there any dominant (either weakly or strictly) strategy for the driver in this
problem?
c. (7 points) Using the same information given in part 2 of this question, under which
condition of factor a will the patrol consider T as a (either weakly or strictly) dominant
strategy?
d. (8 points) Still use the information given in part 2 of this question and knowing
that a = 8, find a pure-strategy Nash equilibrium for this problem (not necessarily
the unique Nash equilibrium).
Question 24
According to a lot of international organizations such as World Bank, International
Monetary Fund (IMF), Oxfam, etc.: “The Covid-19 pandemic has deepened the
income inequality, thereby widening the wealth gap”.
a. (10 points) Based on your knowledge, please clarify the statement in order to
answer “How is the income inequality caused by Covid-19 illustrated?”
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b. (10 points) Explain the reason(s) why the Covid-19 pandemic has deepened the
income inequality and widened the wealth gap.
c. (10 points) What are the policies/solutions to reduce income inequality and tackle
wealth gap widening caused by Covid-19?
Question 25
Buyer and seller of a good meet each other in a market. In each period, before
going to the market, the seller has to decide to sell a good of high quality (H) or low
quality (L) to the buyer. The buyer, without knowing the quality of the good, has to
decide whether to buy (B) or not buy (N). Only when the buyer returns home does he
learn about the quality of the good. The payoff matrix for each period, which is known
to both parties, is shown in the table below. Each party's total payoff is the sum of his
payoffs in all periods.
Table: Payoff matrix
Buyer
B N
H 2,2 -1,0
Seller
L 3,-1 0,0
a (10 points). Suppose that the buyer and the seller meet each other only once. Find
the Nash equilibrium of the game.
b (5 points). Now, suppose that the buyer and the seller meet each other in infinitely
many periods. Before the first period, the buyer sends the seller a message: "I will buy
the good in the first period, and as long as you sell me high quality good, I will always
buy. However, if you sell low quality good in any period, I will never buy the good
again". Should the seller sell high or low quality good?
c (5 points). Now, suppose that the buyer and the seller meet each other in 2 periods.
Before the first period, the buyer sends the seller a message as in (b). What will
happen if the seller:
(i) always sells high quality good?
(ii) always sell low quality good?
(iii) sells high quality good in the first period and switches to low quality good
in the second period?
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(iv) sells low quality good in the first period and switches to high quality good
in the second period? What will the seller do if he wants to maximize his
total payoff? Calculate the seller's and the payer's payoffs in this case.
d (10 points). Now, suppose that the buyer and the seller meet each other in 2
periods. The buyer knows that the seller expects the buyer to buy the good as long as
the seller sells high quality good in all previous periods, but the buyer does not actually
commit to do so.
(i) If the buyer could guess what the seller will do to maximize his total payoff
as in (c), what should the buyer do?
(ii) Continue with this logic, if the seller could guess what the buyer will do as
in (d-i), what should the seller do?
(iii) Continue with this logic, if the buyer could guess what the seller will do in
(d-ii), what should the buyer do? Calculate the seller's and the buyer's total
payoffs in this case.
---THE END---
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Question 1
Which of the following would NOT be an opportunity cost of your summer holiday to
Nha Trang?
a. the amount of money you could have earned if you took a summer job instead
b. the cost of the airline ticket(s) to Nha Trang
c. the cost of the ticket to Tri Nguyen Aquarium in Nha Trang
d. the rent you pay for your accommodation in Hanoi even though
you do not stay there during your summer holiday
Question 2
The economic philosopher who is recognized to found modern Macroeconomics?
a. Nicolas Gregory Mankiw b. Milton Friedman
c. Adam Smith d. John Maynard Keynes
Question 3
If a country's real GDP (gross domestic product) grows at an annual rate of 2%, after
roughly _____ years, this country's real GDP will double.
a. 25 b. 30 c. 35 d. 40
Question 4
In a full-employment economy, a high rate of growth requires:
a. a low rate of saving and a low rate of investment
b. a high rate of saving and a low rate of investment
c. a high rate of saving and a high rate of investment
d. a low rate of saving and a high rate of investment
Question 5
Look at Table below
B’s price policy
High Low
A: 20 A: 10
A’s High
B: 20 B: 30
price
A: 30 A: 15
policy Low
B: 10 B: 15
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The Nash equilibrium in the game is:

a. (High, High) b. (High, Low) c. (Low, High) d. (Low, Low)
Question 6
Choose the statement which is NOT TRUE?
a. Common card games are an example of game theory.
b. Perfect competition is an example of game theory.
c. One example of game theory is Oligopoly.
d. An example of game theory is Auctions.
Question 7
What is TRUE for a bank in a fractional-reserve banking system:
a. The bank does not make loans.
b. The bank keeps only a fraction of its deposits in reserve.
c. The bank holds only a fraction of its reserves in deposits.
d. The bank does not receive deposits.
Question 8
The costs of producing 1, 2, 3, and 4 units of output are 5$ (United States Dollar),
8$, 10$, and 11$, respectively. The marginal cost of producing the second unit of
output is:
a. 5$. b. 4$. c. 3$. d. 2$.
Question 9
A firm has the following cost function: TC = 3Q + 5. The firm's average cost would
be:
a. 3 b. 4 c. 5 d. 3 + 5/Q
Question 10
The demand company ABC faces for its product is shown in Table below.
Price ($/kg) 6.5 5.5 4.8 4.3 3.9
Quantity demanded
100 150 200 250 300
(kg)
If it costs this company 2.5$ to produce 1 kg (kilogram) of output, but the company
only sells output in sacks of 50 kg each, what is the optimal quantity the company
sells?
a. 100 kg b. 150 kg c. 200 kg d. 250 kg
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Question 11
Two firms A and B are producing the same quantity of output at the same total cost.
Firm A has lower fixed cost and higher variable cost than firm B. Which of the
following statements is correct?
a. If each firm produces less, their total costs will be equal.
b. If each firm produces more, their total costs will be equal.
c. If each firm produces less, firm A will have lower total cost than
firm B will.
d. If each firm produces more, firm A will have lower total cost than firm B will.
Question 12
When the price is 8$, there is:

a. a surplus of 400 units. b. a shortage of 400 units.
c. a surplus of 200 units. d. a shortage of 200 units.
Question 13
When supply increases, the price _____ and the quantity demanded _____.
a. decreases, increases b. increases, decreases
c. decreases, decreases d. increases, increases
Question 14
There were 5 million face masks demanded at a price of 2$ per piece in 2020. In
2021, the quantity demanded at the same price was 4.5 million face masks. Which
of the following would be most likely NOT the cause of such decrease:
a. a decreased risk of contracting Covid-19 without face masks.
b. a decrease in the price of materials used for producing face masks.
c. abolition of mask requirement in public places.
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d. a decrease in consumers' income if face masks are a normal good.

Question 15
Which of the following statements are correct for both a monopolist and a perfectly
competitive firm?
i) The firm maximizes profits by equating marginal revenue with marginal cost.
ii) The firm maximizes profits by equating price with marginal cost.
iii) The firm's marginal revenue curve lies below its demand curve.
iv) Average revenue equals price.
a. i) and iv) only b. i) ii), and iv) only
c. i), iii), and iv) only d. i), ii), iii), and iv)
Question 16
Antipollution policies include:
a. legislated standards b. emissions fees or taxes
c. market for pollution rights d. all of the answers mentioned
Question 17
Which of the following people is considered unemployed?
a. An's grandmother, who is too old to work.
b. Phuong is not working because she is attending college.
c. Binh was made redundant during the Covid-19 pandemic, he has
applied for several jobs in the past few weeks but has not been
successful.
d. Tuan has dropped out of school but he does not want to work.
Question 18
As the consumer price index increases, the typical household in Vietnam
a. can spend fewer Vietnamese Dongs to keep the same living standard.
b. has to spend more Vietnamese Dongs to keep the same living
standard.
c. finds that living standard is not affected.
d. can save more to offset the effects of rising prices.
Question 19
Mrs. Nobi lets Nobita and Doraemon share 100 Dorayaki cakes between themselves.
Nobita can make a proposal in which he states the number of cakes he gives
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Doraemon (any integer between 1 and 100), the rest belongs to him. Doraemon then
can decide whether to accept or reject the proposal. If Doraemon accepts, the cakes
will be divided among them as Nobita has proposed, otherwise both of them will
receive nothing. They can make their decision only once and cannot negotiate with
each other. How many Nash equilibria are there in this game?
a. 0 b. 1 c. 2 d. 100
Question 20
Which of the following would result in the greatest increase in the economy’s output?
a. a 50$ million reduction in taxes.
b. a 50$ million increase in taxes.
c. a 50$ million reduction in government spending.
d. a 50$ million increase in government spending.
Question 21
The term that describes the deviation of unemployment from its natural rate is:
a. frictional unemployment.
b. cyclical unemployment.
c. the unnatural rate of unemployment.
d. structural unemployment.
Question 22
For an asset to become the medium of exchange, it must necessarily:
a. be widely accepted.
b. be declared a legal tender by the government.
c. have intrinsic value.
d. be both widely accepted and declared a legal tender by the government.
Question 23
What is TRUE about "Fiat money"?
a. has value in exchange which is equal to its intrinsic value.
b. is backed by gold
c. is backed by silver
d. is money that does not contain intrinsic value.
Question 24
When calculating the CPI, pork is given greater weight than beef if:
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a. consumers buy more pork than beef.

b. the price of pork is higher than the price of beef.
c. it costs more to produce pork than it costs to produce beef.
d. pork is more readily available than beef is to the typical consumer.
Question 25
Nam consumes only rice and noodles. If rice is a normal good and noodles is an
inferior good, when Nam's income increases, he consumes:
a. more of both goods.
b. more rice and less noodles.
c. more noodles and less rice.
d. more rice, but the impact on noodles is ambiguous.
Question 26
The relative prices of two goods X and Y is 2:3. If Minh is consuming the quantities of
X and Y such that MUx/MUy = 3:2, what should Minh do in order to maximize his
utility?
a. Minh should consume more X and less Y.
b. Minh should consume more Y and less X.
c. Minh should consume the same quantities of X and Y as before because he is
already maximizing his utility.
d. Indeterminate from the given information.
Question 27
What is TRUE for a closed economy which has positive investment and a government
deficit?
a. Both private and public saving are positive.
b. Private saving is positive while public saving is negative.
c. Private saving is negative while public saving is positive.
d. Both private saving and public saving are negative.
Question 28
2010 1$ 100 4$ 50
2011 2$ 200 5$ 100
2012 3$ 300 6$ 150
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What are the nominal GDP in 2010, 2011, 2012 respectively?
a. Nominal GDP 2010 = 300$; 2011=600$; 2012 = 1200$.
b. Nominal GDP 2010 = 300$; 2011=700$; 2012 = 1300$.
c. Nominal GDP 2010 = 300$; 2011=900$; 2012 = 1800$.
d. Nominal GDP 2010 = 300$; 2011=600$; 2012 = 1800$.
Question 29
2010 1$ 100 4$ 50
2011 2$ 200 5$ 100
2012 3$ 300 6$ 150

What are the real GDP in 2010, 2011, 2012 respectively?
a. Real GDP 2010=300$; 2011=400$; 2012 = 500$
b. Real GDP 2010=300$; 2011=600$; 2012 = 700$
c. Real GDP 2010=600$; 2011=600$; 2012 = 900$
d. Real GDP 2010=300$; 2011=600$; 2012 = 900$
Question 30
2010 1$ 100 4$ 50
2011 2$ 200 5$ 100
2012 3$ 300 6$ 150

The basket of goods used to compute the CPI (Consumer Price Index) consists of 100
units of A and 50 units of B. What are the inflation rate in 2012?
a. 50% b. 200% c. 33.33% d. 43.33%
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Question 1
The world which does not have scarcity of resources would lead to:
a. Zero prices for all goods and services
b. It would be unnecessary to set up markets
c. Everyone would not need to learn Economics
d. All the answers mentioned are correct
Question 2
Assume that the textile and garment industry will be able to produce the same quantity
of output as before if it employs 2 fewer units of labor and 1 more unit of capital,
while the food processing industry will be able to produce the same quantity of output
as before if it employs 1 more unit of labor and 3 fewer units of capital. The total
output of the economy will increase if:
a. 1 unit of labor is shifted from the textile and garment industry to the food
processing industry and 1 unit of capital is shifted from the food processing industry
b. 1 unit of labor is shifted from the textile and garment industry to the food
c. 1 unit of labor is shifted from the textile and garment industry to the food
Question 3
The following would lead to a shift in the demand curve for chicken, EXCEPT:
a. a change in tastes for chicken
b. a decrease in the price of pork
c. an increase in the income of chicken consumers
d. a change in the price of chicken
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Question 4
Suppose that rice consumption decreases by 5% in response to a 10% increase in the
price of rice. Such a price increase would cause households to:
a. spend more of their income on rice.
b. spend less of their income on rice.
c. spend the same amount of their income on rice as before.
d. indeterminate from the given information.
Question 5
The adult population of Vietnam must be equal to:
a. the sum of "the employed", "the unemployed" and "labor force" in Asia.
b. "the employed" plus "the unemployed" in Vietnam.
c. the sum of "the employed", "the unemployed" and "not in the labor
force" in Vietnam.
d. the total of "the employed", "the unemployed", "labor force" and "not in the
labor force" of Vietnam.
Question 6
Money has the following functions, EXCEPT:
a. Money makes saving easier.
b. The value of money does not change in inflation times.
c. Money makes it easier to buy and sell goods.
d. Money makes it easier to trade services.
Question 7
The term "money" used by economists means:
a. all wealth.
b. all assets, including real assets and financial assets.
c. all financial assets, but real assets are not regarded as money.
d. those types of wealth that are regularly accepted by sellers in
exchange for goods and services.
Question 8
When the SBV (State Bank of Vietnam) buys government bonds:
a. the money supply does not change.
b. the money supply increases.
c. the money supply decreases.
d. the money supply decreases and right after that increases.
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Question 9
As our national income expands, we would expect:
a. our exports to increase b. our imports to increase
c. our exports to decrease d. our imports to decrease
Question 10
An increase in the demand for Vinfast automobiles will:
a. decrease the supply of rubber
b. decrease the demand for rubber
c. increase the demand for rubber
d. decrease the demand for recyclable newspapers
Question 11
If the budget line shifts from AB to A'B' we can infer that:

a. the price of X has decreased and the price of Y has increased.
b. the price of X has increased and the price of Y has decreased.
c. the prices of both X and Y have increased.
d. the prices of both X and Y have decreased.
Question 12
If potatoes are given away for free, people should consume:
a. an infinite quantity of potatoes.
b. potatoes until the total utility from consuming potatoes decreases to zero.
c. potatoes until the marginal utility from consuming potatoes
decreases to zero.
d. no potatoes because utility maximization requires that marginal utility equal
price.
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Question 13
An increase in the cost of a fixed input would cause:
a. the average variable cost to shift upward.
b. the average total cost to shift upward.
c. the marginal cost to shift upward.
Question 14
If a monopolist's fixed cost doubles, this will:
a. double the profit-maximizing price that the monopolist charges.
b. halve the profit that the monopolist earns.
c. lead the monopolist to shut down.
d. not lead to any changes in the profit-maximizing price that the
monopolist charges, provided that it continues its production.
Question 15
As price falls from Pa to Pb, which demand curve represents the most elastic
demand?
a. D1 b. D2
c. D d. All of the above are equally elastic.
Question 16
At the same time, what are two things that GDP (Gross domestic product) measures:
a. the total spending of all the people in the economy and the total saving of all
the people in the economy.
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b. the total income of all the people in the economy and the total
expenditure on the output of goods and services in the economy.
c. the value of the economy's output of goods and services for domestic citizens
and the value of the economy's output of goods and services for the rest of the world.
d. the total income of households in the economy and the total profit of firms in the
economy.
Question 17
Assume that one economy consists of 1,500 food-producing companies with the same
revenues and costs. The revenues and costs for each company are shown in the table
below:
Unit: 1,000 VND
Products Revenues Costs
Rice 70 50
Sticky rice 50 20
Noodles 90 40
Corn 60 30
Potato 30 10
GDP of this economy is equal to:

a. 225,000 VND b. 250,000 VND
c. 225,000,000 VND d. 250,000,000 VND
Question 18
2 players, Player 1 and Player 2, have to make their decisions simultaneously without
knowing what the other decides. Player 1 has two strategies, A and B. Player 2 has
two strategies, C and D. Their payoffs are shown in the Table below.
Payoff matrix
Player 2
C D
A 1,3 5,2
Player 1
B 6,2 4,3
How many pure-strategy Nash equilibria are there in this game?
a. 0 b. 1 c. 2 d. 4
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Question 19
A monopolist faces a linear demand function. If its total revenue is maximized at the
price of 12, we can conclude that:
a. The firm's profit-maximizing price is 12 if and only if the marginal cost is zero
at all levels of output.
b. The quantity demanded for its output is zero at any price equal to
or greater than 24.
c. Demand is elastic at any price lower than 12.
Question 20
Mai and Lan are consuming the same quantity of rice. Given that they are purchasing
rice at the same price, if Mai's demand for rice is more elastic than Lan's, then:
a. Mai's consumer surplus is larger than that of Lan.
b. Mai's consumer surplus is smaller than that of Lan.
c. Mai's consumer surplus is equal to that of Lan.
d. It is not possible to compare Mai's consumer surplus with that of Lan given the
above information.
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If not stated otherwise, think of all goods, services and assets as of infinitely
divisible.
Numbers of firms and people may be only integers.
Convey your ideas clearly. Do not skip important logical transitions in your
reasoning. Good luck!
Question 21
Inflation rate in Vietnam is increasing and is under lots of pressure to continue
increasing in the upcoming time.
a. (10 points) Please state the reasons causing inflationary pressures in Vietnam at
the moment.
Then please explain those reasons using Macroeconomics theory and if relevant,
illustrate by diagrams.
b. Inflation causes negative effects on different sectors of Vietnam's economy. In order
to prevent and control inflation, from now, what policies/solutions can be
implemented by each of the following sectors in the economy:
- Government (10 points)
- Enterprises (5 points)
- Consumers (5 points)
Solution
a.
Marking
Answer
Scheme
Indicate the definition of "Inflation": Inflation is a rise in the 1 point
average price of goods over time.
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1st Reason: Cost push 2.5 points

Covid 19-Pandemic in the world- Supply decreases, including
material and oil supply - input price increase - Vietnam is an very
open economy with the open rate 200% - input prices in Vietnam
increase - prices of good and services increases - Inflation
Diagram 1 point
2nd Reason: Demand pull 2.5 points

- From 2021, Vietnamese Government has issued and thực hiện
many policies to stimulus aggregate demand, namely: reduce
taxes, strengthen and promote public investment, launch many
support packages for businesses (10 trillion package) - support
the economy to recover soon, put on a new trajectory.
- Support policies for employees to ensure human resources for
the economy: tax delay and reduction package.
- Banks relax debts and loans of businesses, increase credit
balance for businesses to access loans, restructure bank debts,
provide interest rate compensation, simplify administrative
procedures, and open up business operations.
- Having spent 40 trillion VND to support interest rates, equivalent
to 2% increase of credit balance for the economy - businesses can
access cheap capital to boost the economy.
- Stimulus package makes the Aggregate Demand increase - price
increase
Diagram 1 point
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3rd Reason: Expectation 2 points

Expectations are crucial determinants of inflation. Workers and
firms take account of the expected rate of inflation when making
decisions. Generally, the higher the expected rate of inflation, the
higher will be the level of pay settlements and price rises, and
hence the higher will be the resulting actual rate of inflation.The
expectation of people in Vietnam now is relatively high due to the
situation in the world and the prices are currently rising.
b.
Marking
Answer
Scheme
Government: 10 points
- Support enterprises in order to keep/maintain the reasonalble
prices - firms do not have to increase the prices of goods/services:
Financial assistance policies (in cash, consultation, policy
dissemination,…); Decrease tax; Reduce costs for businesses,
including time costs, administrative procedures, logistics,
minimizing input burden for businesses
- Support consumers: decrease tax in order to decrease the prices,
directly support in cash for workers, labor fource
- Stablize the price level by celling price, policies preventing price
increase, especially, limit the increase in prices of raw materials
and essential goods and do not massively increase other items.
- Moneytary policy: increase the interest rate for deposit to
decrease the money supply and attract the money to the fund;
control the money supply
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- Government spending: invest public capital effectively, disburse

according to schedule, not put pressure on aggregate demand,
saving/not cause waste
- Inform, propaganda to avoid too high inflation expectations
- Anticipate and keep abreast of domestic price increases
- Learning to live with inflation. For example, the government
/employers may use indexation in wage/pensions contracts.
Indexation is when wages or pensions are increased in line with
the current rate of inflation. Indexation is aimed at nullifying the
effects of inflation.
Enterprise 5 points
- Adjust, improve, change the characteristics of goods and
products to keep the old price, for example decrease the size,
quantity of products to maintain the price
- Cut cost, decrease the cost, eliminate the unneccessary costs
- Improve or change the input, for example, switch to clean, green
energy sources, avoid dependence on fossil fuels
- Learning to live with inflation, Anticipate and include
expectation of inflation in the trading contracts to avoid loss. For
example, the government/employers may use indexation in
wage/pensions contracts. Indexation is when wages or pensions
are increased in line with the current rate of inflation. Indexation
is aimed at nullifying the effects of inflation.
Consumers 5 points
- Reduce spending, avoid luxury products, use public transport,
use sale goods
- Learning to live with inflation involves accepting the fact that
inflation is here to stay when standard anti –inflationary policy
measures appear ineffective. In such a situation we just have to
learn to live with inflation. Learning to live with inflation involves
the government, employers and workers taking inflation into
account in their everyday transactions.
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Question 22
A monopolist faces the following demand for its product: QD = 60 - P. Its cost function
is TC = 0.5Q2 + 6Q + 20.
a. (10 points) Calculate the monopolist's profit-maximizing price and quantity.
b. (10 points) Calculate the socially optimal price and quantity.
c. (10 points) Calculate the deadweight loss caused by monopoly in this case. How
could the government use price controls to bring the monopolist' output quantity to
the socially optimal level?
Solution
a. The firm's profit-maximizing price and quantity:
MR = 60 - 2Q, MC = Q + 6
MR = MC <--> 60 - 2Q = Q + 6 <--> Q = 18
P = 60 - 18 = 42
b. The socially optimal price and quantity:
P = MC <--> 60 - Q = Q + 6 <--> Q = 27
P = 60 - 27 = 33
c. Deadweight loss:
At Q = 18, MC = 18 + 6 = 24
DWL = 1/2 * (42 - 24)(27 - 18) = 81
The government could bring the quantity of output to the optimal level by imposing
a price ceiling equal to the socially optimal price of 33.
15
P
40
11
60 MC
9
427
33
6 MR D
24
O 18 27 Q
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Question 23
Consider a game theory problem with two players: a driver and a patrol. The driver
violates traffic law.
In that circumstance, the patrol can choose one of the three actions: i) charge a true
amount of fine F and provide the source of legal document for that fine at their cost
of time Cp (action T); ii) charge a correct amount of fine F but do not give any
reference then suggest a bribe B (action B); iii) announce the driver an amount of fine
W higher than the correct amount F without providing any reference. The patrol then
can seize the difference W-F (action W).
Then the driver can choose one of the two actions: i) follow the patrol instruction and
the case is resolved immediately (action f); ii) questioning the patrol (action q), only
pay a correct fine F, and bear the time cost to figure out this correct fine (either Cp in
case that the patrol provide references or Cd otherwise, where Cd > Cp). In the case
that the driver questions the patrol, the patrol also bears the same time cost as the
driver.
The driver and the patrol decide their action to resolve the case simultaneously. Each
party has full knowledge of the other’s possible actions and payoffs in each scenario.
After the case is resolved, it can be randomly selected for further investigation with
the probability of 10%. The further investigation always finds out the truth. If the case
is resolved lawfully by both parties, there will be no additional actions. If the case
was detected as unlawful, the following adjustment will be made:
- If the patrol is corrupted (i.e action B or action W), they are charged a
penalty equal to the factor a multiplied with the money they get from
corruption (that is a factor a multiplied with either the bribe amount B or
the seized amount W-F).
- If the driver follows the patrol request of bribe B, they will not only lose their
bribe B but also need to pay the correct fine F and additional charge of
bribing public officer an amount of b multiply time cost Cq they should have
spent to comply with the law.
- If the driver follows the patrol request and pays a fine W, they will get back
the difference of their payment and the actual fine W-F.
The patrol and the driver only play pure strategies. Provide answers to following
questions:
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a. (7 points) Give the matrix of expected payoff function for the driver and the patrol
as the formula of F,B,W,Cp,Cq,a,b
Hint:
- The expected payoff function of a party is
0.1* (payoff for the party under further investigation) +0.9*(payoff for the party
under no further investigation).
- Payoff for parties need to be written in 6 different outcomes as 6 cells in the
following table with the first place of ( , ) as the payoff for the driver and
second place as payoff for the patrol.
Driver\Patrol T B W
f ( , ) ( , ) ( , )
q ( , ) ( , ) ( , )
b. (8 points) Given that F = $250; B = $150; Cd = $100; W = $300; Cq = $50; b =

16, is there any dominant (either weakly or strictly) strategy for the driver in this
problem?
c. (7 points) Using the same information given in part 2 of this question, under which
condition of factor a will the patrol consider T as a (either weakly or strictly) dominant
strategy?
d. (8 points) Still use the information given in part 2 of this question and knowing
that a = 8, find a pure-strategy Nash equilibrium for this problem (not necessarily
the unique Nash equilibrium).
Solution
a. (8 points) Give the matrix of expected payoff function for the driver and
the patrol as the formula of F, B, W, Cd, Cq, a, b
- The expected payoff function of a party is 0.1* (payoff for under further
investigation) +0.9*(payoff for that party under no further investigation).
- Payoff for each parties need to be written in 6 different outcomes as 6 cells
in the following table with the first place of ( , ) as the payoff for the patrol and second
place as payoff for the driver.
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Driver\Patrol T B W
(0.9B-0.1aB, (0.9(W-F)-0.1a(W-F),
f (0, -F)
-0.9B-0.1(B+bC+F)) -0.9W+0.1(W-F))
q (-Cq, -F- Cq) (-Cd, -F- Cd) (-Cd, -F- Cd)
Explanation for the complicated cell with expected value:
Patrol choose B, driver choose f:
For patrol:
- get the amount of B with probability of 0.9 when there is no investigation
- pay a penalty of a*B with probability of 0.1 when under investigation
Therefore, the expected payoff for the patrol in this case is 0.9B-0.1aB
For driver:
- pay the amount of B in case of no investigation with probability of 0.9
- lose bribery B, pay penalty of b*C for bribing officer, pay fine F for violate
motorbike's light regulation under investigation with probability of 0.1:
Therefore, the expected payoff for the driver in this case is -0.9B-0.1(B+bC+F)
Patrol choose W, driver choose f:
For patrol:
- get the amount of (W-F) under no investigation with probability of 0.9
- pay a penalty of a*(W-F) under investigation with probability of 0.1
Therefore, the expected payoff for the patrol is 0.9(W-F)-0.1a(W-F)
For driver:
- pay W under no investigation with probability of 0.9
- get back the difference (W-F) under investigation with probability of 0.1
Therefore, the expected payoff for the driver is -0.9W+0.1(W-F)
b. (7 points) Given that F = $250; B = $150; Cd = $100; W = $300; Cq =

$50; b = 16, is there any dominant strategy for the driver in this problem?
Plug the given value into table in part a we obtain the following table of
payoff:
T B W
f (0, -250) ((0.9-0.1a)*150, -335) ((0.9-0.1a)*50, -265)
q (-50, -300) (-100, -350) (-100, -350)
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Under any strategy of the patrol, the driver have a lower loss when they follow the
patrol decision:
- under patrol T, -250> -300
- under patrol B: -335>-350
- under patrol W: -265>-350
Conclusion: Follow the patrol is a dominant strategy for the driver
c. (7 points) Using the same information given in part 2 of this question, under
which condition of factor a will the patrol consider T as a dominant strategy?
T is strictly dominent for the patrol only when:
- If the driver follows the patrol, T gives a payoff -50> B gives a payoff -100>
W give a payoff of -100
- If the driver questions the patrol, T is dominent only when 0>(0.9-0.1a)B and
0>(0.9-0.1a)(W-F)
That is when 0.9-0.1a>0 or a>9, T is strictly dominent for the patrol.
d. (8 points) Still use the information given in part 2 of this question and
knowing that a=8, find a pure-strategy Nash equilibrium for this problem (not
necessarily the unique Nash equilibrium).
Plug the given value into table in part a we obtain the following table of
payoff:
T B W
f (0, -250) (15, -335) (5, -265)
q (-50, -300) (-100, -350) (-100, -350)
By part b, the driver has a dominant strategy of following the patrol, this is
the best response to driver.
Under the best response of driver, patrol have the highest payoff if the patrol
suggest bribe (15>5>0). When the patrol chooses this response, the driver will never
divert from the decision of following the patron.
Conclusion: Patrol ask for bribe and driver follow the patrol to give the bribe
is one of the Nash equilibrium
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Question 24
According to a lot of international organizations such as World Bank, International
Monetary Fund (IMF), Oxfam, etc.: “The Covid-19 pandemic has deepened the
income inequality, thereby widening the wealth gap”.
a. (10 points) Based on your knowledge, please clarify the statement in order to
answer “How is the income inequality caused by Covid-19 illustrated?”
b. (10 points) Explain the reason(s) why the Covid-19 pandemic has deepened the
income inequality and widened the wealth gap.
c. (10 points) What are the policies/solutions to reduce income inequality and tackle
wealth gap widening caused by Covid-19?
Solution
a.
Marking
Answer
Scheme
Indicate the relevant definitions: 2 points
- Income
- Wealth
The relationship income & wealth
- Income equality
- Wealth gap
Inequality between countries - internationally 4 points
Explanation/Comparison among countries (financial resources,
science and technology, industry structure)
Inequality within countries - nationally 4 points
Explanation/Comparison among areas (financial resources,
science and technology, industry structure)
b.
Marking
Answer
Scheme
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Inequality between countries – internationally 5 points

- Rich countries have financial resources to make up for the
economic deficits caused by the pandemic. The pandemic is
increasing poverty and inequality between richer countries that can
afford to bail out their firms and provide social safety nets, and
poorer countries that do not have the capacity to do so.
- Rich countries have advanced science and technology, and
solutions for vaccines and health care can be accessed earlier and
more abundantly, avoiding the risk of infection.
- Rich/developed countries have a less unskilled industry
structure that consists largely of high-skilled occupations. This
group of people bear less risk of disease exposure and have more
stable jobs
Inequality within countries - nationally: Differences between the 5 points
rich and the poor which lead to inequality: Education and Wealth
accumulation/Asset, Ownership of Asset/Property Living Standard
(1 point)
- Comparison in the job with its characteristics (1 point) The
wealthy were not only able to keep their well-paid jobs but also
benefited from soaring stock markets and rising house prices. Low-
paid workers were, in contrast, more likely to have jobs in the
sectors that suspended activities, including hospitality and tourism.
They were also more likely to work in essential services such as
nursing, policing, teaching, cleaning, waste removal and as shop
assistants – in all of which occupations, they had a higher likelihood
of being exposed to COVID-19. Higher-paid workers are working
from home while lower-paid blue-collar workers typically do not
have this option.
- Comparison in income and financial status, onwership
of property (1 point)
- Comparison in living area, living enviroment (1 point)
The risk of contagion was further elevated by people's living in more
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crowded homes, apartment buildings with communal lifts and

entrances, and on their being more reliant on public transport.
- Comparison in access to health care services and other
services (1 point) As COVID-19 peaked in their
neighbourhoods, they were also more likely to be locked down,
which further undermined incomes. Weaker health facilities in their
neighbourhoods meant mortality rates were higher, with a higher
incidence of existing health problems also increasing their
vulnerability. A higher share of poor workers are in precarious
hourly paid employment, making them less able to access social
security, health insurance and emergency benefits that could
cushion the decline in income and the effect of COVID-19 on their
lives. The pandemic has come on top of a decade of austerity and
stagnating wages in the UK, US and many other countries,
deepening the hardship endured by growing numbers of people.
c.
Marking
Answer
Scheme
Inequality between countries - internationally 5 points
A comprehensive strategy is needed to steer the global economy
onto a more inclusive development path. Such a strategy needs to
include measures to reduce both between-country and within-
country inequality through national reforms and with support from
the global community.
- This involves a rapid global rollout of vaccination and health
care and productivity - enhancing reforms in EMDEs to lower
between-country inequality; (2 points)
- Fiscal support targeted at vulnerable population groups and
measures to broaden access to education, digital services and
infrastructure; (1.5 points)
- And assistance from the global community to resolve debt
overhangs and to ensure an open and rules-based global trade and
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investment climate that nurtures faster productivity growth in

EMDEs. (1.5 points)
Inequality within countries – nationally 5 points
- Taxation (1.5 points). Progressive income tax systems
+ Taxing the rich more heavily ie by raising tax rates on those who
are earning in the highest income tax brackets or by raising the
income tax free allowance of the lower end by raising the tax-free
allowance;
+ Collect more income tax revenue from the rich and that revenue
can be used to redistribute and provide to the poor either in terms
of higher benefits or by spending on key areas like education
services, health services or helping the vunerable of the economy
due to Covid - 19 pandemic which will benefit the poor significantly;
+ Reduce or exempt tax for the poor
- Increasing benefits or transfer payments in order to
help the poor. (1.5 points)
+ Transfer payments or payments made by the government to
economic agents where there is no exchange of goods and services
at all so raising benefits
+ Means-tested benefits or universal benefits. Mean tested benefits
or benefits simply to those who desperately need it, only to those
people and they get taken away when living conditions improve or
incomes increase beyond a certain threshold. Universal benefits
don't get taken away when conditions change or improve and
they're available to all regardless of whether they're in desperate
need of them or not.
- Minimum maximum wages (1.5 points) could be used by
the government to directly impact labor markets and change wages.
+ Minimum wages help those on lower wages and help those who
are getting wages which does not give them a decent standard of
living. Minimum wages can artificially boost that wage and maybe
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access to a greater living standard for those workers who are paid
very lowly
+ Maximum wages to control so that wages can not increase
beyond a certain level, especially capping things like bonuses.
- Supply-side policies (0.5 point): Government Spending on
Covid 19 health care tackling issues and vaccination together with
the general health care system. In addition, Government should
focus on education and other public welfare sectors. This solution
helps to tackle the root causes of poverty or the root cause of
unequal distributions of income and wealth in the long term.
However, these policies are very expensive and maybe cannot
necessarily be afforded by Governments who are under very very
tough budgetary control at the moment, and also they take a long
time to take an effect.
Question 25
Buyer and seller of a good meet each other in a market. In each period, before
going to the market, the seller has to decide to sell a good of high quality (H) or low
quality (L) to the buyer. The buyer, without knowing the quality of the good, has to
decide whether to buy (B) or not buy (N). Only when the buyer returns home does he
learn about the quality of the good. The payoff matrix for each period, which is known
to both parties, is shown in the table below. Each party's total payoff is the sum of his
payoffs in all periods.
Table: Payoff matrix
Buyer
B N
H 2,2 -1,0
Seller
L 3,-1 0,0
a (10 points). Suppose that the buyer and the seller meet each other only once.
Find the Nash equilibrium of the game.
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b (5 points). Now, suppose that the buyer and the seller meet each other in
infinitely many periods. Before the first period, the buyer sends the seller a
message: "I will buy the good in the first period, and as long as you sell me high
quality good, I will always buy. However, if you sell low quality good in any
period, I will never buy the good again". Should the seller sell high or low quality
good?
c (5 points). Now, suppose that the buyer and the seller meet each other in 2
periods. Before the first period, the buyer sends the seller a message as in (b).
What will happen if the seller:
(i) always sells high quality good?
(ii) always sell low quality good?
(iii) sells high quality good in the first period and switches to low quality
good in the second period?
(iv) sells low quality good in the first period and switches to high quality
good in the second period? What will the seller do if he wants to
maximize his total payoff? Calculate the seller's and the payer's payoffs
in this case.
d (10 points). Now, suppose that the buyer and the seller meet each other in 2
periods. The buyer knows that the seller expects the buyer to buy the good as long
as the seller sells high quality good in all previous periods, but the buyer does not
actually commit to do so.
(i) If the buyer could guess what the seller will do to maximize his total
payoff as in (c), what should the buyer do?
(ii) Continue with this logic, if the seller could guess what the buyer will do
as in (d-i), what should the seller do?
(iii) Continue with this logic, if the buyer could guess what the seller will do
in (d-ii), what should the buyer do? Calculate the seller's and the
buyer's total payoffs in this case.
Solution
a. The Nash equilibrium of the game is: the seller sells low quality good and
the buyer chooses to not buy. (L, N) = (0,0).
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b. If the seller always sells high quality good, he will get 3 in every period.
However, if he sells low quality good in any period, he will get 3 in that period, 2 in
all previous periods but at most 0 in all subsequent periods. If the game is played
infinitely many times, the seller should always sell high quality good.
c. (i) US = 2 + 2 = 4
(ii) US = 3 + 0 = 3
(iii) US = 2 + 3 = 5
(iv) US = 3 + (-1) = 2
The seller will sell high quality good in the first period and low quality good in
the second period. As a result, US = 5, UB = 2 + (-1) = 1.
d. If the buyer could guess that the seller will sell low quality good in the second
period, the buyer will not buy the good in the second period. As a result, UB = 2 + 0 =
2, US = 2 + 0 = 2.
Continue with this logic, if the seller could guess that the buyer will not buy the
good in the second period anyway, he will sell low quality good in the first period.
As a result, UB = -1 + 0 = -1, US = 3 + 0 = 3.
However, if the buyer could guess that the buyer will sell low quality good in
the first period, the buyer will not buy the good in both periods. As a result, UB = 0
+ 0 = 0, US = 0 + 0 = 0.
---------------------------------------------------
Marking Rule:
0 pt – no answer, wrong answer
Half of total points – partially correct answer that contains some necessary elements
to explain
Full points – full answer with detailed analyzed and discussion.
Answers that are not mentioned in this Model can be discussed by the Jury.
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TUYỂN TẬP ĐỀ THI OLYMPIC KINH TẾ QUỐC TẾ - INTERNATIONAL

ECONOMICS OLYMPIAD (IEO)
Mô tả đề thi IEO
Mặc dù việc giảng dạy kinh tế học và các môn học tương tự rất khác nhau trên toàn
thế giới, nhưng các nhiệm vụ của IEO sẽ được soạn thảo nhằm đảm bảo sự bình
đẳng giữa các thí sinh. Các nhiệm vụ sẽ không chỉ nhằm mục đích kiểm tra kiến thức
lý thuyết. Một phần đáng kể các nhiệm vụ yêu cầu khả năng áp dụng thực tế, kiểm
tra kỹ năng phân tích và khả năng tìm tòi.
Các phần Kinh tế và Tài chính của cuộc thi là phần thi cá nhân. Thí sinh có thể sử
dụng máy tính bỏ túi đơn giản và từ điển để dịch các từ mới. Điện thoại thông minh
và các thiết bị khác bị cấm.
Theo Quy chế của IEO, tất cả các nhiệm vụ sẽ chỉ được cung cấp bằng tiếng Anh.
Người dự thi phải cung cấp các giải pháp bằng tiếng Anh.
Trong mọi phần thi, kết quả đầu tiên được tính bằng điểm thô. Điểm thô sau đó được
chuẩn hóa để lấy điểm cuối cùng theo quy trình sau.
Gọi Gi là điểm thô của thí sinh thứ i (hoặc đội trong Phần 3), A - là trung bình cộng
của tất cả các điểm thô, σ - độ lệch chuẩn của tất cả các điểm thô. Sau đó, chúng tôi
xác định điểm
Z của thí sinh thứ i là:
Zi = (Gi -A)/
Kết quả cuối cùng của thí sinh thứ i sau đó được tính như sau:
Fi= M/2*min{max{1+zi/2; 0}; 2}
Với M là có thể kết quả tối đa của phần này (ở điểm cuối cùng) quy định tại
chương trình học này.
Nếu điểm số thay đổi trong quá trình Điều chỉnh điểm (Moderation), điểm Z và điểm
cuối cùng sẽ được tính lại.
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Điểm tổng kết cá nhân tối đa cho mỗi phần của cuộc thi (biến M) là như sau: 100
cho phần Kinh tế học (Economics), 50 cho phần Hiểu biết về Tài chính (Financial
Literacy), 50 cho phần Kinh doanh (Business – Case Study). Điểm cá nhân cho phần
Kinh doanh bằng điểm của cả nhóm (đội thi) trong phần đó.
Tổng kết quả của từng cá nhân được tính bằng tổng của cả ba điểm cuối cùng. Nếu
có hai thí sinh bằng điểm, chúng ta sẽ so sánh điểm phần Kinh tế. Nếu vẫn bằng
nhau, điểm phần Tài chính sẽ được so sánh.
Tổng kết quả của đội được tính bằng tổng của:
• Điểm tổng kết trung bình của các thành viên trong nhóm phần Kinh tế chia
cho 2;
• Điểm tổng kết trung bình của các thành viên trong nhóm trong phần Tài chính;
• Điểm của đội trong phần Kinh doanh (Business case).
Nếu có hai đội bằng điểm, chúng ta sẽ so sánh điểm trung bình phần Kinh tế. Nếu
vẫn bằng nhau, điểm phần Kinh doanh (Business case) sẽ được so sánh.
Điểm cuối cùng của từng phần thi không được công bố trước khi diễn ra Bế mạc kỳ thi.
Thông tin cụ thể từng phần thi được mô tả trong bảng dưới đây:
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ĐỀ THI INTERNATIONAL ECONOMICS OLYMPIAD 2018
Đề thi tiếng Anh

International Economics Olympiad

Moscow
Economics
Test
All 20 multiple choice questions will be graded (4 raw points for the correct an-
swer, minus 1 raw point for the incorrect answer, zero points for no answer).
1. What does UK GDP per capita measure?

1) the total output of London’s economy
2) the average disposable income of a UK resident
3) the total output of the UK citizens, divided by the number of the citizens
4) the total output of the UK’s economy, divided by the country’s population
2. Currently you work for 40 hours per week at the wage rate of $20 an hour. Your
free hours are defined as the number of hours not spent in work per week, which in
this case is 24 hours × 7 days − 40 hours = 128 hours per week. Suppose now that
your wage rate has increased by 25%. If you are happy to keep your total weekly
income constant, then:
1) Your total number of working hours per week will fall by 25%.
2) Your total number of working hours per week will be 30 hours.
3) Your total number of free hours per week will increase by 25%.
4) Your total number of free hours per week will increase by 6.25%.
3. Four farmers are deciding whether to contribute to the maintenance of an irrigation

project. For each farmer, the cost of contributing to the project is $10. But when any
one farmer contributes, all four of them will benefit from an increase in their crop
yields, in particular each gains additional $8.
Which of the following statements is correct?
1) If all the farmers are selfish, none of them will contribute.
2) There are multiple Nash equilibria in this game.
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3) If Kim is altruistic and contributes $10, the others might contribute too, even if they
are selfish.
4) If the farmers have to reconsider this decision every year and consider infinite
horizon of planning, they will never choose to contribute to the project if they are
selfish.
4. Which of the following statements about the outcome of an economic interaction is

cor-rect?
1) If the allocation is Pareto efficient, then you cannot make anyone better off without
making someone else worse off.
2) All participants are happy with what they get if the allocation is Pareto efficient.
3) There cannot be more than one Pareto-efficient outcome.
4) Pareto-efficient outcome is always fair.
5. Maria earns $12 per hour in her current job and works 35 hours a week. Her
disutility of effort is equivalent to a cost of $2 per hour of work. If she loses her job,
she will receive unemployment benefit equivalent to $6 per hour. Additionally, being
unemployed has psy- chological and social costs equivalent to $1 per hour. Then:
1) The employment rent per hour is $3.
2) Maria’s reservation wage is $6 per hour.
3) If she is offered a job with the wage $11 and disutility of $0,5, she will refuse.
4) If she is offered a job with the wage $14 and disutility of $3, she will take it.
6. The table represents market demand Q for a good at different prices P.

Q 100 200 300 400 500 600 700 800 900 1,000
P $270 $240 $210 $180 $150 $120 $90 $60 $30 $0
The firm’s unit cost of production is $60. Based on this information, which of the
following is correct?
1) At = 100, the firm’s profit is $20,000.
2) The profit-maximizing output is = 400.
3) The maximum profit that can be attained is $50,000.
4) The firm will make a loss at all outputs of 800 and above.
7. Which of the following statements is correct?

1) A fall in the mortgage interest rate would shift down the demand curve for new
houses.
2) The launch of a new Samsung smartphone would shift up the demand curve for
existing iPhones.
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3) A fall in the oil price would shift up the demand curve for oil.
4) A fall in the oil price would shift down the supply curve for plastics.
8. Which of these measures will by itself decrease the Gini coefficient of income
distribution?
1) Flat rate income tax
2) Regressive income tax
3) Progressive income tax
4) Income tax at the rate of 80% for the richer half of the population and income tax
at the rate of 20% for the poorer half.

1) The fundamental value of the shares in a firm is determined by expected future
profits and systematic risk.
2) If there is no new information regarding the future profitability or systematic risk of
a firm, but its share price keeps rising, the fundamental value must be increasing.
3) Buying a share at a price above its fundamental value in the hope that someone
else would buy it from you at an even higher price is guaranteed to lose money.
4) All investors always agree on the fundamental value of the shares in a firm.
10. Consider the situation where the noise of a factory’s production affects nurses in
the dormitory next door. If there are no transaction costs to impede bargaining, which
of the following statements is correct?
1) Whether the final output level will be Pareto efficient depends on who has the initial
property rights.
2) The nurses would be better off in the bargained allocation if they initially had a
right to undisturbed sleep than they would if the factory has the right to make noise.
3) If the factory has the right to make noise, it will prefer not to bargain with the nurses.
4) If the nurses have the initial rights, they will obtain all of the net social gain from
factory production.

1) GDP can be measured either as the total spending on domestically produced goods
and services, or the total value added in domestic production, or the sum of all
incomes received from domestic production.
2) Both exports and imports are included in the measurement of GDP.
3) Government production is not included in the GDP.
4) Domestically consumed goods are included in GDP with more weight than exports.
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1) Maintaining fiscal balance in a recession helps to stabilize the economy.
2) Automatic stabilizers refer to the fact that economic shocks are partly offset by
households smoothing their consumption in the face of variable income.
3) The multiplier on a fiscal stimulus is higher when the economy is functioning at full
capacity.
4) A fiscal stimulus can be implemented by raising spending to directly increase
demand, or by cutting taxes to increase private sector demand.

1) When interest rates go down, asset prices go up.
2) The zero lower bound refers to the central bank’s inability to set the real interest
rate to below zero.
3) Quantitative easing involves the central bank lowering its official interest rate.
4) Interest rates cannot be set in a currency union.

1) In the short-run model the amount of some factor is fixed, while in the long-run
model the amount of this factor can vary.
2) Labour-saving technological progress raises unemployment in both the short and
long run.
3) Firms are more likely to enter the market when the markup is low.
4) The markup is independent of the number of firms.
15. Which of the following statements is correct, ceteris paribus?

1) An increase in the trade surplus would lead to a decrease in a country’s current
account.
2) A country with zero trade balance but historically high foreign direct investment
would always have a current account deficit.
3) An increase in remittances by a country’s nationals abroad would lead to a lower
current account.
4) An increase in the official aid payment sent to other countries means a lower
current account.
16. The following diagram shows Alex’s and Jose’s feasible production frontiers for
orangesand melons. (Resourse allocation is equal between them.)
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1) Jose has an absolute advantage in the production of melons but not oranges.
2) Jose has a comparative advantage in the production of melons.
3) With trade and specialization, Jose will specialize in the production of oranges
while Alex will specialize in the production of melons.
4) The relative price of melons after trade will be 1.75.

1) Lump-sum taxes equal for all citizens decrease inequality.
2) Providing high-quality education to citizens is a way of raising the endowments of
less well off people.
3) An increase in the minimum wage increases unemployment, leading to higher
inequality unambiguously.
4) Non-complete contracts mean that workers can demand higher wages, leading to
reduced inequality.

1) Bargaining between affected parties is always effective in reducing the
inefficiencies caused by externalities, even in the presence of transaction costs.
2) The market price of pesticides is unlikely to reflect the full social cost of their use.
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3) All externalities result in the good producing the external effect being overused.
4) Reducing air travel is an unfortunate and inefficient by-product of taxing flights.

1) There is no innovation in the absence of patents.
2) Longer patent duration will always lead to an increase in the probability of
innovation.
3) There is trade-off between greater incentive to innovate from higher innovation rent
income and the disincentive for potential innovators from using patented knowledge.
4) The optimal duration of patents is where the probability of innovation is maximized.
20. Which of the following cases represents the concept of a natural experiment?
1) People play Ultimatum game differently in different experimental setups
2) The placebo effect of a drug was confirmed in the laboratory
3) The difference between the economies of South and North Korea
4) People sometimes cooperate in the Prisoner’s dilemma game conducted for writing
papers in experimental economics
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Moscow
Economics
Problems
Solve no more than 4 problems out of 5. Indicate your choice of problems to grade
on page 3 of your paper.
If you provide solutions for all 5 problems, all of them will be commented by the Jury
Every problem is worth 30 points.
Convey your ideas clearly. Don’t skip important logical transitions in your reasoning.
Take care of handwriting. If you strike something out, it won’t be graded.
If you want to leave the room for a while, raise your hand and ask a volunteer. Good
luck!
Problem 1. “True cost?” (30 raw points)

In Moscow, there exists a restaurant chain that uses the following pricing
mechanism. A consumer must pay some entrance fee, after that they can order
whatever they want for the
price that is equal to the cost of ingredients.
The price of an entry ticket depends on the time of the day (being higher in the
evening than in the morning), but prices of menu items remain the same and are very
low for Moscow standards. For instance, a portion of pasta costs only about $2–2.5,
the price of a ribeye steak is about $4, a burger with grilled tiger prawns and arugula
can be purchased for merely $3. For only $3–4 a customer can drink a glass of decent
wine. These prices are very low compared to other restaurants in the city. Customers
must eat and drink inside; if they want to take something away, the price doubles.
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a) (15 rp) One of the well-known models of price discrimination explains how
similar pricing scheme can be profitable for a seller (for instance, in Disneyland
entrance fee is high while using most of its facilities is free). Using this model, explain,
how such pricing technique helps this restaurant maximize profits (use graphical
analysis where appropriate).
b) (15 rp) While such a scheme is successful in the theme park industry and
restaurant business, we don’t see supermarkets or clothes shops pricing this way.
Explain why.
Problem 2. “Substitutes and complements” (30 raw points)

Consider two commodities, A and B, that are substitutes in consumption.
a) (10 pr) Suppose that the number of consumers of good A increased, thus
shifting the demand for it. Assuming perfect competition in both markets, what can
you say about the resulting change in the price of B? Explain in detail.
b) (10 pr) Suppose that A and B are not only substitutes in consumption but
also complements in production. What can you say about the resulting change in
the price of B? Explain in detail.
c) (10 pr) Give a real-world example of two commodities that are both
substitutes in consumption and complements in production.
Problem 3. “Letting the Briber Go Free” (30 raw points)

A situation where a government official uses his position to acquire illicit
benefit is called corruption. Corruption is a big problem in many countries and
governments design different policies to curb it. According to one of the proposed
policies (sometimes called the Basu proposal1), the government should make it legal
to give bribes and severely punish only bribe-takers.
a) (10 rp) Explain the logic behind this proposal: why may it work?
b) (10 rp) Suppose Alice and Beatrice are trying to pass a test to get the
driver’s licenses. Alice is a good driver. However, Beatrice is a hazard to other
drivers and is about to fail the test. The examiner is corrupt and tries to maximize
1 See Basu, K. (2011). Why, for a Class of Bribes, the Act of Giving a Bribe should be Treated as Legal.
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his revenue from bribes. How will implementing the Basu proposal might affect Alice
and Beatrice?
c) (10 rp) Generalise the example above: for what class of bribes the Basu
proposal can be an efficient policy?
Problem 4. “Intergenerational Elasticity” (30 raw points)

The degree to which members of society have equal opportunity of success,
irrespective of their family background, is often measured by intergenerational
elasticity of income. Roughly, it measures what percentage of inequality between
members of the generation is passed on to the members of the next generation. Here
is a definition from The Economy by CORE:
[C]onsider two pairs of fathers and children. The father in the first pair is richer
than the father in the second. The intergenerational elasticity measures how much
richer the child of the well off father will be than the child of the poorer father. An
elasticity of 0.5, for example, means that if one father is 10% richer, then his child,
when grown up, will be on average 5% richer than the other child.
The following graph show the relation between inequality and
intergenerational income elasticity. Sometimes it is called The Great Gatsby Curve2.
Corak, M. (2012). Inequality from generation to generation: The United States in

comparison.
2 The term is attributed to Alan Krueger.
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Provide two distinct economic arguments that explain the positive correlation
between current inequality (measured by the Gini coefficient) and intergenerational
inequality.
Problem 5. “Current Account Deficit” (30 raw points)

During his lecture at Sberbank Corporate University, Ilya Androsov was talking
about countries that find themselves in a situation of current account deficit.
a) (15 rp) Using the example of Turkey, explain why this deficit can be
detrimental to economic growth.
b) (15 rp) Can you tell a story where such current account deficit can be
beneficial for the economy of the country?
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Bản dịch tham khảo

Tất cả 20 câu hỏi trắc nghiệm sẽ được tính điểm (4 điểm cho 1 câu trả lời đúng, trừ
1 điểm cho 1 câu trả lời sai, không trả lời không bị trừ điểm)
Câu 1. Chỉ số GDP bình quân đầu người của vương quốc Anh đo lường điều gì?
A. Tổng sản lượng của nền kinh tế London.
B. Thu nhập khả dụng trung bình của một cư dân người Anh.
C. Tổng sản lượng của công dân Vương quốc Anh làm ra, chia cho số công dân.
D. Tổng sản lượng của nền kinh tế Vương quốc Anh, chia cho dân số của đất nước.
Câu 2. Hiện tại bạn làm việc 40 giờ mỗi tuần với mức lương $20 một giờ. Số giờ
rảnh rỗi của bạn được định nghĩa là số giờ không làm việc mỗi tuần, trong trường
hợp này là 24 giờ x 7 ngày - 40 giờ = 128 giờ mỗi tuần. Giả sử bây giờ tỷ lệ tiền
lương của bạn đã tăng 25%. Nếu bạn hài lòng khi giữ tổng thu nhập hàng tuần của
mình không đổi, thì
A. Tổng số giờ làm việc mỗi tuần của bạn sẽ giảm 25%.
B. Tổng số giờ làm việc mỗi tuần của bạn sẽ là 30 giờ.
C. Tổng số giờ rảnh mỗi tuần của bạn sẽ tăng 25%.
D. Tổng số giờ rảnh mỗi tuần của bạn sẽ tăng 6,25%.
Câu 3. Bốn nông dân đang quyết định xem có nên đóng góp vào việc bảo trì dự án
thủy lợi hay không. Đối với mỗi nông dân, chi phí đóng góp cho dự án là 10 đô la.
Nhưng khi bất kỳ một nông dân nào đóng góp, cả bốn người trong số họ sẽ được
hưởng lợi từ việc tăng năng suất cây trồng của họ, cụ thể mỗi người trong số họ sẽthu
thêm được 8 đô la.
Khẳng định nào sau đây là đúng?
A. Nếu tất cả nông dân đều ích kỉ thì chẳng có ai đóng góp cho dự án.
B. Có nhiều điểm cân bằng Nash trong trò chơi này.
C. Nếu nông dân Kim tốt bụng đóng góp 10 đô la, thì những người khác cũng có thể
sẽ đóng góp, ngay cả khi họ ích kỷ.
D. Nếu những người nông dân phải xem xét lại quyết định này hàng năm và cân
nhắc tầm nhìn dài hạn của kế hoạch, họ sẽ không bao giờ chọn đóng góp cho dự
án nếu họ ích kỷ.
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Câu 4. Phát biểu nào sau đây về kết quả của một tương tác kinh tế là đúng?
A. Nếu phân bổ đạt hiệu quả Pareto, thì bạn không thể làm cho một người hưởng lợi
mà không làm một người khác bị ảnh hưởng lợi ích.
B. Tất cả những người tham gia đều hài lòng với những gì họ nhận được nếu phân
bổ đạt hiệu quả Pareto.
C. Không thể có nhiều hơn một kết quả đạt hiệu quả Pareto.
D. Kết quả thỏa mãn hiệu quả Pareto luôn đảm bảo công bằng.
Câu 5. Maria kiếm được $12 mỗi giờ với công việc hiện tại và làm việc 35 giờ một
tuần. Sự nỗ lực nhưng không được vận dụng hiệu quả (nỗ lực phản hiệu dụng) của
cô ấy tương đương với chi phí $2 mỗi giờ làm việc. Nếu cô ấy bị mất việc làm, cô ấy
sẽ nhận được tiền trợ cấp thất nghiệp tương đương $6 mỗi giờ. Ngoài ra, thất nghiệp
có chi phí xã hội và tâm lý tương đương 1 đô la mỗi giờ. Nên
A. Giá thuê việc làm mỗi giờ là $3.
B. Mức lương bảo lưu của Maria là $6 mỗi giờ.
C. Nếu cô ấy được đề nghị một công việc với mức lương 11 đô la và nỗ lực phản
hiệu dụng có chi phí 0,5 đô la, cô ấy sẽ từ chối.
D. Nếu cô ấy được đề nghị một công việc với mức lương 14 đô la và nỗ lực phản
hiệu dụng có chi phí 3 đô la, cô ấy sẽ nhận nó.
Câu 6. Bảng dưới đây thể hiện nhu cầu thị trường Q đối với hàng hóa ở các mức
giá khác nhau P
Q 100 200 300 400 500 600 700 800 900 1000
P $270 $240 $210 $180 $150 $120 $90 $60 $30 $0
Chi phí sản xuất đơn vị (cho một sản phẩm) của công ty là $69. Dựa trên thông tin
này, phát biểu nào sau đây là đúng?
A. Tại Q = 100, lợi nhuận của công ty là $20000.
B. Sản lượng tối đa hóa lợi nhuận là Q = 400.
C. Lợi nhuận tối đa có thể đạt được là $50000.
D. Công ty sẽ lỗ ở tất cả các sản phẩm từ sản phẩm số 800 trở lên.
Câu 7. Khẳng định nào sau đây là đúng?
A. Lãi suất thế chấp giảm sẽ làm dịch chuyển đường cầu về mua nhà ở mới.
B. Sự ra mắt của một chiếc điện thoại Samsung mới sẽ làm thay đổi đường cầu đối
với những chiếc iPhone.
C. Giá dầu giảm sẽ làm dịch chuyển đường cầu về dầu.
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D. Giá dầu giảm sẽ làm dịch chuyển đường cung đối với sản phẩm nhựa xuống.
Câu 8. Các biện pháp nào trong số các biện pháp dưới đây sẽ tự nó làm giảm hệ
số phân phối thu nhập Gini?
A. Thuế thu nhập tỷ lệ cố định.
B. Thuế thu nhập lũy thoái.
C. Thuế thu nhập lũy tiến.
D. Thuế thu nhập 80% đối với nửa dân số giàu hơn và thuế thu nhập 20% đối với
nửa dân số nghèo hơn.
Câu 9. Mệnh đề nào sau đây đúng?
A. Giá trị cơ bản của cổ phiếu trong một công ty được xác định bởi lợi nhuận dự kiến
trong tương lai và rủi ro có hệ thống.
B. Nếu không có thông tin mới về khả năng sinh lời trong tương lai hoặc rủi ro hệ
thống của một công ty, nhưng giá cổ phiếu của nó tiếp tục tăng, giá trị cơ bản phải
ngày càng tăng.
C. Mua cổ phiếu ở mức giá cao hơn giá trị cơ bản của nó với hy vọng rằng người
khác sẽ mua nó từ bạn với giá thậm chí cao hơn sẽ đảm bảo bị thua lỗ.
D. Tất cả các nhà đầu tư luôn đồng ý về giá trị cơ bản của cổ phần trong một công ty.
Câu 10. Hãy xem xét tình huống trong đó tiếng ồn của hoạt động sản xuất của nhà
máy ảnh hưởng đến các y tá trong ký túc xá bên cạnh. Nếu không có chi phí giao
dịch nào cản trở việc mặc cả, thì các câu sau đây là đúng?
A. Mức sản lượng cuối cùng có hiệu quả Pareto hay không phụ thuộc vào người có
các quyền tài sản ban đầu.
B. Các y tá sẽ có lợi hơn trong việc phân bổ thương lượng nếu ban đầu họ có quyền
không bị quấy rầy khi ngủ hơn chính họ nếu nhà máy có quyền gây ra tiếng ồn.
C. Nếu nhà máy có quyền gây tiếng ồn, họ sẽ không muốn mặc cả với các y tá.
D. Nếu các y tá có các quyền ban đầu, họ sẽ nhận được tất cả lợi ích xã hội ròng từ
nhà máy sản xuất.
Câu 11. Mệnh đề nào sau đây là đúng?
A. GDP có thể được đo lường bằng tổng chi tiêu cho hàng hóa sản xuất trong nước
và dịch vụ, hoặc tổng giá trị gia tăng trong sản xuất trong nước, hoặc tổng tất cả các
khoản thu nhập nhận được từ sản xuất trong nước.
B. Cả xuất khẩu và nhập khẩu đều được tính vào phép đo GDP.
C. Sản xuất của chính phủ không được tính vào GDP.
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D. Hàng hóa tiêu dùng trong nước được tính vào GDP với tỷ trọng lớn hơn hàng
xuất khẩu.
A. Duy trì cân bằng tài khóa trong thời kỳ suy thoái giúp ổn định nền kinh tế.
B. Các yếu tố bình ổn kinh tế tự động đề cập đến thực tế là các cú sốc kinh tế được
bù đắp một phần bởi các hộ gia đình khi họ có điều chỉnh cho phù hợp mức tiêu
dùng của họ trong bối cảnh thu nhập biến động.
C. Số nhân tài khóa cao hơn khi nền kinh tế hoạt động hết công suất.
D. Một biện pháp kích thích tài khóa có thể được thực hiện bằng cách tăng chi tiêu
để trực tiếp làm tăng nhu cầu, hoặc bằng cách cắt giảm thuế để tăng nhu cầu của
khu vực tư nhân.
A. Khi lãi suất giảm, giá tài sản tăng.
B. Giới hạn thấp hơn 0 đề cập đến việc ngân hàng trung ương không có khả năng
đặt lãi suất thực thành dưới không.
C. Nới lỏng định lượng liên quan đến việc ngân hàng trung ương giảm lãi suất chính
thức.
D. Không thể đặt lãi suất trong một liên minh tiền tệ.
A. Trong mô hình ngắn hạn, số lượng của một số yếu tố là cố định, trong khi trong
mô hình dài hạn số lượng của yếu tố này có thể thay đổi.
B. Tiến bộ công nghệ về sức lao động sẽ làm tăng tỷ lệ thất nghiệp trong ngắn hạn
và dài hạn.
C. Các công ty có nhiều khả năng tham gia thị trường hơn khi mức đánh dấu thấp.
D. Mức đánh dấu không phụ thuộc vào số lượng công ty.
Câu 15. Câu nào sau đây đúng khi các yếu tố khác không thay đổi (ceteris paribus)?
A. Thặng dư thương mại tăng lên sẽ dẫn đến giảm tài khoản vãng lai của một quốc gia.
B. Một quốc gia có cán cân thương mại bằng không nhưng vốn đầu tư trực tiếp nước
ngoài cao trong lịch sử sẽ luôn thâm hụt tài khoản vãng lai.
C. Sự gia tăng lượng kiều hối của công dân một quốc gia ở nước ngoài sẽ dẫn đến
tài khoản vãng lai thấp.
D. Việc tăng khoản viện trợ chính thức gửi cho các nước khác đồng nghĩa với việc tài
khoản vãng lai thấp.
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Câu 16. Sơ đồ sau đây cho thấy đường giới hạn khả năng sản xuất của Alex và
Jose với sản phẩm cam và dưa. (Việc phân bổ tài nguyên là ngang nhau giữa hai
bạn.)
A. Jose có lợi thế tuyệt đối trong việc sản xuất dưa nhưng không phải cam.
B. Jose có lợi thế so sánh trong việc sản xuất dưa.
C. Với thương mại và chuyên môn hóa, Jose sẽ chuyên sản xuất cam trong khi Alex
sẽ chuyên sản xuất các loại dưa.
D. Giá tương đối của dưa sau khi giao dịch sẽ là 1,75.
A. Thuế khoán của mọi công dân bằng nhau sẽ làm giảm bất bình đẳng.
B. Cung cấp giáo dục chất lượng cao cho người dân là một cách để nâng cao tài sản
của những người yếu kém hơn về điều kiện kinh tế.
C. Tăng lương tối thiểu làm tăng tỷ lệ thất nghiệp, dẫn đến bất bình đẳng cao hơn
một cách rõ ràng.
D. Hợp đồng không cạnh tranh có nghĩa là người lao động có thể đòi hỏi mức lương
cao hơn, dẫn đến giảm bất bình đẳng.
A. Thương lượng giữa các bên liên quan luôn có hiệu quả trong việc giảm thiểu sự
kém hiệu quả gây ra bởi các yếu tố bên ngoài, ngay cả khi có chi phí.
B. Giá thị trường của thuốc bảo vệ thực vật không có khả năng phản ánh toàn bộ chi
phí xã hội của việc sử dụng chúng.
C. Tất cả các tác động bên ngoài dẫn đến kết quả tốt tạo ra tác động bên ngoài bị
lạm dụng.
D. Giảm việc đi lại bằng đường hàng không là một tác dụng phụ đáng tiếc và không
hiệu quả của việc đánh thuế các chuyến bay.
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Câu 19. Mệnh đề nào sau đây đúng?

A. Không có đổi mới trong trường hợp không có bằng sáng chế.
B. Thời hạn bằng sáng chế dài hơn sẽ luôn dẫn đến việc tăng xác suất đổi mới.
C. Có sự đánh đổi giữa khuyến khích lớn hơn để đổi mới từ thu nhập cho thuê đổi
mới cao hơn và không khuyến khích các nhà đổi mới tiềm năng sử dụng kiến thức đã
được cấp bằng sáng chế.
D. Thời hạn tối ưu của bằng sáng chế là khi xác suất đổi mới được tối đa hóa.
Câu 20. Trường hợp nào sau đây thể hiện khái niệm thực nghiệm tự nhiên?
A. Mọi người chơi trò chơi tối hậu thư (Ultimatum) một cách khác nhau trong các điều
kiện khác nhau.
B. Hiệu ứng giả dược của một loại thuốc đã được xác nhận trong phòng thí nghiệm.
C. Sự khác biệt giữa nền kinh tế của Nam và Bắc Triều Tiên.
D. Đôi khi trong trò chơi Thế tiến thoái lưỡng nan của Người tù, mọi người hợp tác
để tiến hành viết bài báo về kinh tế học thực nghiệm.
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Moscow
Economics
Test
All 20 multiple choice questions will be graded (4 raw points for the correct an-
swer, minus 1 raw point for the incorrect answer, zero points for no answer).
1. What does UK GDP per capita measure?

1) the total output of London’s economy
2) the average disposable income of a UK resident
3) the total output of the UK citizens, divided by the number of the citizens
4) the total output of the UK’s economy, divided by the country’s
population
2. Currently you work for 40 hours per week at the wage rate of $20 an hour. Your
free hours are defined as the number of hours not spent in work per week, which in
this case is 24 hours × 7 days − 40 hours = 128 hours per week. Suppose now that
your wage rate has increased by 25%. If you are happy to keep your total weekly
income constant, then:
1) Your total number of working hours per week will fall by 25%.
2) Your total number of working hours per week will be 30 hours.
3) Your total number of free hours per week will increase by 25%.
4) Your total number of free hours per week will increase by 6.25%.
3. Four farmers are deciding whether to contribute to the maintenance of an irrigation

project. For each farmer, the cost of contributing to the project is $10. But when any
one farmer contributes, all four of them will benefit from an increase in their crop
yields, in particular each gains additional $8. Which of the following statements is
correct?
1) If all the farmers are selfish, none of them will contribute.
2) There are multiple Nash equilibria in this game.
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3) If Kim is altruistic and contributes $10, the others might contribute too, even if they
are selfish.
4) If the farmers have to reconsider this decision every year and consider infinite
horizon of planning, they will never choose to contribute to the project if they are selfish.
4. Which of the following statements about the outcome of an economic interaction is

cor-rect?
1) If the allocation is Pareto efficient, then you cannot make anyone
better off without making someone else worse off.
2) All participants are happy with what they get if the allocation is Pareto efficient.
3) There cannot be more than one Pareto-efficient outcome.
4) Pareto-efficient outcome is always fair.
5. Maria earns $12 per hour in her current job and works 35 hours a week. Her
disutility of effort is equivalent to a cost of $2 per hour of work. If she loses her job,
she will receive unemployment benefit equivalent to $6 per hour. Additionally, being
unemployed has psy- chological and social costs equivalent to $1 per hour. Then:
1) The employment rent per hour is $3.
2) Maria’s reservation wage is $6 per hour.
3) If she is offered a job with the wage $11 and disutility of $0,5, she will refuse.
4) If she is offered a job with the wage $14 and disutility of $3, she
will take it.
6. The table represents market demand Q for a good at different prices P.

Q 100 200 300 400 500 600 700 800 900 1,000
P $270 $240 $210 $180 $150 $120 $90 $60 $30 $0
The firm’s unit cost of production is $60. Based on this information, which of the
following is correct?
1) At = 100, the firm’s profit is $20,000.
2) The profit-maximizing output is = 400.
3) The maximum profit that can be attained is $50,000.
4) The firm will make a loss at all outputs of 800 and above.
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1) A fall in the mortgage interest rate would shift down the demand curve for new
houses.
2) The launch of a new Samsung smartphone would shift up the demand curve for
existing iPhones.
3) A fall in the oil price would shift up the demand curve for oil.
4) A fall in the oil price would shift down the supply curve for plastics.
8. Which of these measures will by itself decrease the Gini coefficient of income
distribution?
1) Flat rate income tax
2) Regressive income tax
3) Progressive income tax
4) Income tax at the rate of 80% for the richer half of the population and income tax
at the rate of 20% for the poorer half.

1) The fundamental value of the shares in a firm is determined by
expected future profits and systematic risk.
2) If there is no new information regarding the future profitability or systematic risk of
a firm, but its share price keeps rising, the fundamental value must be increasing.
3) Buying a share at a price above its fundamental value in the hope that someone else
would buy it from you at an even higher price is guaranteed to lose money.
4) All investors always agree on the fundamental value of the shares in a firm.
10. Consider the situation where the noise of a factory’s production affects nurses in
the dormitory next door. If there are no transaction costs to impede bargaining, which
of the following statements is correct?
1) Whether the final output level will be Pareto efficient depends on who has the initial
property rights.
2) The nurses would be better off in the bargained allocation if they
initially had a right to undisturbed sleep than they would if the factory
has the right to make noise.
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3) If the factory has the right to make noise, it will prefer not to bargain with the nurses.
4) If the nurses have the initial rights, they will obtain all of the net social gain from
factory production.

1) GDP can be measured either as the total spending on domestically
produced goods and services, or the total value added in domestic
production, or the sum of all incomes received from domestic
production.
2) Both exports and imports are included in the measurement of GDP.
3) Government production is not included in the GDP.
4) Domestically consumed goods are included in GDP with more weight than exports.

1) Maintaining fiscal balance in a recession helps to stabilize the economy.
2) Automatic stabilizers refer to the fact that economic shocks are partly offset by
households smoothing their consumption in the face of variable income.
3) The multiplier on a fiscal stimulus is higher when the economy is functioning at full
capacity.
4) A fiscal stimulus can be implemented by raising spending to directly
increase demand, or by cutting taxes to increase private sector
demand.

1) When interest rates go down, asset prices go up.
2) The zero lower bound refers to the central bank’s inability to set the real interest
rate to below zero.
3) Quantitative easing involves the central bank lowering its official interest rate.
4) Interest rates cannot be set in a currency union.

1) In the short-run model the amount of some factor is fixed, while in
the long-run model the amount of this factor can vary.
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2) Labour-saving technological progress raises unemployment in both the short and

long run.
3) Firms are more likely to enter the market when the markup is low.
4) The markup is independent of the number of firms.
15. Which of the following statements is correct, ceteris paribus?

1) An increase in the trade surplus would lead to a decrease in a country’s current
account.
2) A country with zero trade balance but historically high foreign direct investment
would always have a current account deficit.
3) An increase in remittances by a country’s nationals abroad would lead to a lower
current account.
4) An increase in the official aid payment sent to other countries means
a lower current account.
16. The following diagram shows Alex’s and Jose’s feasible production frontiers for
oranges and melons. (Resourse allocation is equal between them.)
1) Jose has an absolute advantage in the production of melons but not oranges.
2) Jose has a comparative advantage in the production of melons.
3) With trade and specialization, Jose will specialize in the production
of oranges while Alex will specialize in the production of melons.
4) The relative price of melons after trade will be 1.75.
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1) Lump-sum taxes equal for all citizens decrease inequality.
2) Providing high-quality education to citizens is a way of raising the
endowments of less well off people.
3) An increase in the minimum wage increases unemployment, leading to higher
inequality unambiguously.
4) Non-complete contracts mean that workers can demand higher wages, leading to
reduced inequality.

1) Bargaining between affected parties is always effective in reducing the
inefficiencies caused by externalities, even in the presence of transaction costs.
2) The market price of pesticides is unlikely to reflect the full social cost
of their use.
3) All externalities result in the good producing the external effect being overused.
4) Reducing air travel is an unfortunate and inefficient by-product of taxing flights.

1) There is no innovation in the absence of patents.
2) Longer patent duration will always lead to an increase in the probability of
innovation.
3) There is trade-off between greater incentive to innovate from higher
innovation rent income and the disincentive for potential innovators
from using patented knowledge.
4) The optimal duration of patents is where the probability of innovation is maximized.
20. Which of the following cases represents the concept of a natural experiment?
1) People play Ultimatum game differently in different experimental setups
2) The placebo effect of a drug was confirmed in the laboratory
3) The difference between the economies of South and North Korea
4) People sometimes cooperate in the Prisoner’s dilemma game conducted for writing
papers in experimental economics
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Moscow
Economics
Problems
Solve no more than 4 problems out of 5. Indicate your choice of problems to grade
If you provide solutions for all 5 problems, all of them will be commented by the Jury
Every problem is worth 30 points.
If you want to leave the room for a while, raise your hand and ask a volunteer. Good
luck!
Problem 1. “True cost?” (30 raw points)

In Moscow, there exists a restaurant chain that uses the following pricing
mechanism. A consumer must pay some entrance fee, after that they can order
whatever they want for the
price that is equal to the cost of ingredients.
The price of an entry ticket depends on the time of the day (being higher in the
evening than in the morning), but prices of menu items remain the same and are very
low for Moscow standards. For instance, a portion of pasta costs only about $2–2.5,
the price of a ribeye steak is about $4, a burger with grilled tiger prawns and arugula
can be purchased for merely $3. For only $3–4 a customer can drink a glass of decent
wine. These prices are very low compared to other restaurants in the city. Customers
must eat and drink inside; if they want to take something away, the price doubles.
a) (15 rp) One of the well-known models of price discrimination explains how
similar pricing scheme can be profitable for a seller (for instance, in Disneyland
entrance fee is high while using most of its facilities is free). Using this model, explain,
how such pricing technique helps this restaurant maximize profits (use graphical
analysis where appropriate).
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b) (15 rp) While such a scheme is successful in the theme park industry and
restaurant business, we don’t see supermarkets or clothes shops pricing this way.
Explain why.
Solution
a) Two things are important here:
1. Different entry fees for different times of the day. This works because in the
evening and at night people are ready to pay more in restaurants. This is because
they most likely want to have a fancy dinner with vine etc. rather than a small
breakfast that they can otherwise (if prices are high) cook at home. Similar things are
sometimes called a third-degree price discrimination.
2. Entry fee by itself. This pricing is sometimes called two-part tariff (second-
degree price discrimination) and the logic behind it is as follows. If the restaurant use
a simple linear price (that is, some fixed amount per meal without any other fees), he
has a dilemma. If the price is way higher than marginal cost, profit per meal will be
high, but the restaurant will undersell, thus leaving some potential profit unreceived.
On the other hand, low linear prices close to the marginal cost will allow to sell many
meals, but each meal will bring little profit, leaving the surplus to the customers.
Two-part tariff is a solution: thus the restaurant can make prices of single meals
low (close or equal to marginal cost) and make consumers buy more of them.
Simultane- ously, the restaurant can remove the surplus from the customers via entry
fee. Effec- tively, the more meals a consumer buys in the restaurant, the cheaper they
become on average (because of the fixed entry fee).
b) The crucial feature of the restaurant is that a customer must consume meals
that he ordered inside. Note that if a customer wants to take something away, the
price doubles — this was sort of a hint in the question. In a supermarket or a clothes
store consumers would cooperate to pay entry fee only once and buy a lot of stuff. In
a restaurant where you have to eat inside it is impossible.
Points distribution
a) 5 Different entry fees explained
a) 10 Entry fee explained
b) 15 Answer is clear and fully covers the question.
Problem 2. “Substitutes and complements” (30 raw points)
Consider two commodities, A and B, that are substitutes in consumption.
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a) (10 pr) Suppose that the number of consumers of good A increased, thus
shifting the demand for it. Assuming perfect competition in both markets, what can
you say about the resulting change in the price of B? Explain in detail.
b) (10 pr) Suppose that A and B are not only substitutes in consumption but
also complements in production. What can you say about the resulting change in
the price of B? Explain in detail.
c) (10 pr) Give a real-world example of two commodities that are both
substitutes in consumption and complements in production.
Solution
a) If number of customers for good A increases, this means that demand for
good A will increase and demand curve will shift to write thus increasing price and
quantity demanded for product A (see Pic.1)
Growing demand for product A will increase the pressure on the price of the
product A, thus causing consumers reconsider the choice of product A and switching
to substitute product B (see Pic.2)
If customers are switching to product B then this puts also a pressure on the
price of product B. Price of product B increases.
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b) If goods A and B are also complements in production, increase of quantity

supplied of A will increase also the supply of B thus causing the downward pressure
on the price of B (see Pic. 4).
Combining Pics 3 and 4, we infer that the effect on the price of B is unclear.
c) Complements in production are two or more goods that are jointly produced
using a given resource. The production of one good automatically triggers the
production of another, often as a by-product. Both goods are simultaneously
produced from the same resources. Production of one good does not decrease the
production of the other, as would be the case for substitutes in production.
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Real-life examples:
1. Oil and Gas
2. Chicken wings and chicken breast
3. Milk and yogurt
Points distribution for all parts
0 No significant answer or answer that doesn’t fit the question
5 Partial answer. Answer fits the question, but some parts are not explained
well or unclear
10 Full answer. Answer is clear and fully covers the question.
Problem 3. “Letting the Briber Go Free” (30 raw points)

A situation where a government official uses his position to acquire illicit
benefit is called corruption. Corruption is a big problem in many countries and
governments design different policies to curb it. According to one of the proposed
policies (sometimes called the Basu proposal3), the government should make it legal
to give bribes and severely punish only bribe-takers.
a) (10 rp) Explain the logic behind this proposal: why may it work?
b) (10 rp) Suppose Alice and Beatrice are trying to pass a test to get the
driver’s licenses. Alice is a good driver. However, Beatrice is a hazard to other
drivers and is about to fail the test. The examiner is corrupt and tries to maximize
his revenue from bribes. How will implementing the Basu proposal might affect Alice
and Beatrice?
c) (10 rp) Generalise the example above: for what class of bribes the Basu
proposal can be an efficient policy?
Solution
a) The mechanism of asymmetric punishments creates incentives for the bribe-
giver to report the facts of corruption (blow the whistle), and so, by backward
induction, reduces official’s incentives to take bribes.
It is not enough to say that increasing the fine for corrupt officials decreases
their incentives to ask for bribes. There is nothing special about increasing fines (why
3 See Basu, K. (2011). Why, for a Class of Bribes, the Act of Giving a Bribe should be Treated as Legal.
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not increase fines for both sides?), Basu proposal is special because it encourages
whistle-blowing.
b) If the examiner is corrupt, he will try to receive bribes from both ladies, but
these are different types of bribes.
In the case of Alice, what official does is called extortion (mzdoimstvo in
Russian) — he tries to receive bribe for performing legal actions that are supposed to
be free of charge. In this case, implementing the Basu proposal will create perfect
incentives for Alice to blow the whistle, but probably the official will expect that so
implementation is likely to reduce corruption.
Things are different for Beatrice. In her case, the examiner will try to receive
the bribe for something he is not supposed to do at all (issuing the licence for a person
who cannot drive) — in Russian it is called lihoimstvo4. Of course, if Beatrice rats the
examiner out after Basu proposal implementation, she will receive her bribe back but
will also have to return her driver’s licence because it was issued illegally. But why
apply for the licence in the first place? It was a voluntary, mutually beneficial
transaction between her and the examiner (although producing negative externalities
for society), so cancelling it will make ger worse off. Thus, implementing Basu
proposal in the case of Beatrice won’t be effective.
c) The answer follows from b): Basu proposal can be an efficient policy only
for those cases of corruption when the official tries to extort money for doing his
official job.
Points distribution for all parts

0 No significant answer or answer that doesn’t fit the question
5 Partial answer. Answer fits the question, but some parts are not explained
well or unclear. For example, if in part a) the contestant only says that increasing the
fine for the official will create a disincentive to extort bribes.
10 Full answer. Answer is clear and fully covers the question.
4 For more about the difference between mzdoimstvo and lihoimstvo, see Bardhan, P. (1997). Corruption and
development: a review of issues. Journal of economic literature, 35(3), 1320-1346. Bardhan actually uses these Russian
words to describe different types of corruption.
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Problem 4. “Intergenerational Elasticity” (30 raw points)

The degree to which members of society have equal opportunity of success,
irrespective of their family background, is often measured by intergenerational
elasticity of income. Roughly, it measures what percentage of inequality between
members of the generation is passed on to the members of the next generation. Here
is a definition from The Economy by CORE:
[C]onsider two pairs of fathers and children. The father in the first pair is richer
than the father in the second. The intergenerational elasticity measures how much
richer the child of the well off father will be than the child of the poorer father. An
elasticity of 0.5, for example, means that if one father is 10% richer, then his child,
when grown up, will be on average 5% richer than the other child.
The following graph show the relation between inequality and
intergenerational income elasticity. Sometimes it is called The Great Gatsby Curve5.
Corak, M. (2012). Inequality from generation to generation: The United States in

comparison.
Provide two distinct economic arguments that explain the positive correlation
between current inequality (measured by the Gini coefficient) and intergenerational
inequality.
Solution
5 The term is attributed to Alan Krueger.
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In grading we valued clarity of the exposition and well connected arguments. We

took into consideration that the statement of the question does not specify whether the
Gini coefficient refers to pre-or post-tax income.
In the answer, students should address two arguments in line with those presented in
the following list:
• Ability: more able parents have higher income and transmit their ability to
their kids (when income represents labor productivity).
• Inheritance: higher income parents accumulate more wealth and their children
receive a higher inheritance (income from wealth).
• Arguments related to imperfections
– Children from higher income parents enjoy better opportunities to
increase their income via access to education, parental care, …
– Children from higher income families do no suffer from credit
constraints
– Segregation and discrimination
– Inequality leads to institution failures: favoritism in the labor market, corrup
tion…
Point Distribution
5 points Descriptive answer
10 points Some argumentation but not fully developed
15 points One sound reason
20 points One sound reason with a second reason not fully developed
25 points Two reasons with some gaps in the argumentation
30 points Two distinct sounded reasons
Problem 5. “Current Account Deficit” (30 raw points)

During his lecture at Sberbank Corporate University, Ilya Androsov was talking
about countries that find themselves in a situation of current account deficit.
a) (15 rp) Using the example of Turkey, explain why this deficit can be
detrimental to economic growth.
b) (15 rp) Can you tell a story where such current account deficit can be
beneficial for the economy of the country?
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Solution
a) Ideal answer: current account deficit is balanced by an inflow of foreign
capital. It means that the country is borrowing abroad. To establish if this borrowing
is good or not, one needs to look at the use of the credit and the terms of credit.
Turkish banks were borrowing in foreign currencies (dollar and euro-
denominated bonds and loans), which means that they were exposed to the currency
risk. They tried to address this exposure by extending loans to their customers in
dollars as well, but that only trans- ferred the exchange-rate risk exposure off their
balance sheets and to the balance sheets of their customers. In the end, banks were
still exposed to the exchange rate risk through default risk of their customers.
Moreover, the loans extended were of short maturity. All this means that the terms of
the credit that Turkey got were unfavorable (short credit with exchange-rate
exposure).
Turkey used the credit to finance its construction boom. Despite part of the
money going to the construction of infrastructure, there was a also a substantial
fraction that financed construction of residential and commercial real estate that had
little potential to increase the country’s GDP in the future. From the lecture we learned
that investment projects were of poor quality as lending standard deteriorated, also
bringing into question the ability of such projects to boost GDP growth. Hence, the
way Turkey spend this borrowed money was not generating GDP growth.
Grading: (mention one of each)

5pts: Unstable currency. Currency exposure of banks through borrowing in
USD, but lending in lira.
Substantial leverage and accumulated interest expense.
10pts: Mismatch between maturity of loans and investments. Rollover risk.
Currency exposure of banks through default risk of loans. Deterioration of
credit standards.
15pts: Investments in construction projects, residential and commercial. i.e.
boosting consumption.
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b) Ideal answer:
If the international loans are done at good terms and the funds are invested
wisely, then current account deficit can be beneficial for a country. Example of good
loan terms - USA, that is able to borrow in $, its domestic currency. Hence, its counter-
parties are exposed to the exchange rate risk, not the USA.
If a country, on top of that, is using borrowed funds not for consumption, but
for invest ment goods, then its GDP growth is likely to accelerate in the future.
Quoted from one of the submitted answers: “Imagine a scenario in which lots
of companies in a country with lots of sunshine decided to stop their activities and
start a joint venture in which with funds or loans partly from abroad they made a
huge system that got energy from the sun (solar panels, etc) and produced enough
energy not only for the country but also for the surrounding ones. This way, the current
account would be in deficit for several years but when the country started being fueled
by green energy, energetically efficient and sold energy to there countries not only
would the current amount deficit be greatly reduced but also lots of economic activities
surrounding the energy sector would develop, thus boosting the country’s economic
activity.”
Grading: (mention one of each)

5pts: Stable currency.
Investment in education by foreign aid agencies.
10pts: Loans in domestic currency. Example: USA. Long-term credit.
15pts: Investments in production capacity, not consumption.
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All 20 multiple choice questions will be graded (4 raw points for the correct answer,
-1 raw point for the incorrect answer, 0 points for no answer). Choose one answer in
each question.
1. The local grocery store offers a discount of 20% if a customer pays the 10 USD
monthly fee. How much should a customer’s monthly spending in this store be so that
paying this fee makes sense for her?
1) At least 10 USD 2) At least 30 USD
2. Countries A, B and C produce only watermelons ( ) and grapefruits ( ). The

production possibility frontiers are given by: + = 100, 2 +3 = 300,
+2 = 600. What is the maximum amount of watermelons that they can produce
together if they want to produce at least 200 grapefruits?
1) 200 2) 500
3) 600 4) None of the above
3. GDP of the country X grows by 1% per year every year. GDP of the country Y
grows by 2% per year every year. If in the year 2019 countries have equal GDP, by
what year will their GDP differ by two times? (Choose the nearest estimate).
1) 2050 2) 2090 3) 2150 4) 2180
4. Jane spends all her money on the ingredients of her favorite cocktail. To make a
portion of the cocktail, she has to mix 200 ml of orange juice with 100 ml of apple
juice and with 200 ml of watber. Any juice costs 3 USD per liter, water costs 0.5 USD
per liter. If she has 20 USD, how many portions of the cocktail can she make?
1) 10 2) 12
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5. Which of the following statements best describes the concept of commitment

device?
1) A student announces through social media that he will contribute to charity every
time he gets a grade lower than B- and publish the receipts online.
2) A country leader announces the new policy of fighting corruption through
increased fines for corrupt officials.
3) An investor buys treasury bonds.
4) The price of ice-creams increases after a surge in demand.
6. Which of the following scholars represents the modern institutional theory of

economic growth?
1) Daron Acemoglu 2) Jared Diamond
3) Thomas Malthus 4) Adam Smith
7. The demand for widgets is given by = 100 – 2 , the supply is given by = –20
+ . The government sets the price ceiling at P which results in the deficit 30. Find P
1) P = 10 2) P = 20 3) P = 30 4) P = 40
8. Which of the following best describes natural monopoly?

1) An eco-friendly monopoly.
2) A firm that can produce at lower average costs than two or more firms.
3) A monopoly on the agricultural market.
4) A monopoly that was created without government intervention.
9. Consider a perfectly competitive market where all firms have constant and equal
average cost (a constant cost industry). How will an increase in demand affect the
long run equilibrium price on such a market?
1) Price will increase 2) The price will remain constant
3) The price will decrease 4) Unclear
10. You are going to buy a laptop for 1,000 USD. You can either withdraw this
money from your bank account (it pays 10% interest yearly) or do it using one of the
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following credit schemes. Pick the scheme in which you will spend the most amount of
money overall.
1) Paying directly from you bank account.
2) Credit at 0.1% compound interest per day, the only payment is at the end of
the year.
3) Credit at 12% interest rate per year, the only payment is at the end of the year.
4) Credit at 0.5% compound interest per month, the only payment is at the end of
the year.
11. A perfectly competitive market has 100 firms, each of which has constant =
10. The demand function is given by = 100 - . How much will the market price
increase if all firms create a cartel and maximize joint profit?
1) By 15 2) By 35 3) By 45 4) By 50
12. Which of the following happened at the beginning on the 21st century?
1) The Great Depression 2) The Great Recession
3) The First Industrial Revolution 4) Collapse of the gold standard
13. Firm S is a monopolist on the market for space tourism. The demand for its service
is discrete: consumers are eager to pay 12M USD for the first trip, 11M USD for the
second trip, etc., up to 1M USD for the 12th trip. To organize a trip, the firm must
spend 4M USD. What is the difference between the maximum profit that the firm S
can obtain with the perfect price discrimination compared to linear pricing?
1) 10M 2) 16M
3) 20M 4) None of the above
14. You can often hear the success stories of investors who earn a lot of money at the
stock market. At the same time, the stories of many failures remain untold. This can
create a wrong impression that investing in the stock market is always profitable. This
logical fallacy is called...
1) Survivorship bias 2) Confirmation bias
3) Self-fulfilling prophecy 4) Endowment effect
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15. Which of the following best describes the concept of liquidity trap?
1) A person cannot withdraw money from his bank account because of the bank’s
bankruptcy.
2) A firm wants to invest money earned but cannot find projects worth investing in.
3) A government has so much debt that it has to default.
4) The interest rate is so low that people prefer holding cash.
16. Which of the following best describes the concept of negative trade balance?
1) A country buys from abroad more than it sells abroad.
2) A country buys from abroad less than it sells abroad.
3) A country’s GDP declines for more than three quarters.
4) A country’s FDI declines for more than three quarters.
17. Which of the following policies will most likely reduce the Gini coefficient?
1) Progressive income tax. 2) Regressive income tax.
3) Fixed rate income tax. 4) None of the above.
18. Which of the following statements best describes the concept of network
externality?
1) The service is provided on-line.
2) Producer uses multilevel marketing to attract new customers.
3) The individual utility of using a service increases with the total number of users.
4) The marginal tax rate increases with an increase of income.
19. Which of the following instruments is typically the riskiest one?

1) U.S. Treasury bills
2) Common stocks of a company from S&P 500
3) Deposit in a commercial bank
4) Shares of a startup in Silicon Valley
20. Choose the government policy that will by itself reduce short-run GDP (use the
AD-AS model).
1) Increase in the sales tax rate 2) Decrease in the income tax rate
3) Quantitative easing 4) Buying assets on the open market
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Phần thi Tự luận/Câu hỏi mở -Open Questions
Solve no more than 4 questions out of 5. Indicate your choice of questions to grade
Every open question is worth 30 raw points.
If you want to leave the room for a while, raise your hand and ask a volunteer.
Good luck!
Question 1. “Mechanism Design” (30 raw points)

There are three kids: Alice, Bob and Clara. Their mother wants to split a cake
of size 1 into three pieces and distribute them among the kids. Every kid wants to eat
as much cake as possible.
a) (10 rp) Consider the following mechanism. Alice cuts the cake in three
pieces the way she likes; then Bob takes any piece he likes, and then Clara takes any
piece she likes (of the two that are left), so Alice is left with another remaining piece.
How will Alice cut the cake?
b) (20 rp) Now consider a more complicated situation. A kid is unhappy if he
or she gets less than a certain share of a cake. In particular, Alice will be happy if
she gets at least a piece of size , Bob needs at least , Clara needs at least . For
every kid, getting a piece of the minimum required size is better than getting no cake,
which is, in turn, better than getting a piece of less than the minimum required size.
If one is already happy, he or she nevertheless prefer getting more cake to less cake.
The mother knows that 0 < , , < 1 but does not know , or . All three children
know all three numbers. Under which , , does a mechanism that ensures each of
the kids is happy exist? Suggest such a mechanism.
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Question 2. “AItomation” (30 raw points)

The economic growth of the last 150 years has been largely driven by
automation – new technologies that allowed mechanization of routine tasks previously
performed by labor. The steam engine, electricity, computer chips – all these
technologies both contributed significantly to economic growth and destroyed jobs.
The most recent wave of automation – the rise of Artificial Intelligence (AI) –
seems to be able to automate not only low-skill, physical tasks but also non-routine,
cognitive tasks such as driving cars and making medical recommendations. This
seems to spur widespread anxiety that artificial intelligence may create mass
unemployment in the decades to come. In this task, you are asked to comment on
these developments from an economic standpoint.
a) (10 rp) Consider the following simple model. Suppose in a certain industry
(say, textiles) the quantity produced ( ) is equal to the degree of automation ( ) times
the number of workers ( ): = . The industry is competitive. The wage is fixed at
the level . The demand for textiles is equal to ( ) where is price, and is a
decreasing function. Economic equilibrium occurs at a price such that demand
equals supply. Suppose the degree of automation ( ) grows so that now the industry
needs fewer workers to produce a given amount of textiles. Will the equilibrium
number of workers employed by the industry necessarily fall as a result? Provide a
verbal explanation of the insight you get from the model. In the following parts, do
not limit your argumentation to the model above.
b) (10 rp) A number of authors note that the growth of economic output due
to AI and automation will lead to an increase in aggregate incomes, and thus
demand, including the demand for new goods and services that are now barely
imagined. All this will create new jobs and thus alleviate the problem of
unemployment. Criticize this argument.
c) (10 rp) Many people think that publicly financed Universal Basic Income
(UBI)6 is a good solution to the problem of mass joblessness. Identify and address the
main problems with the UBI in terms of financing the system and motivation to work
(one of each).
6 UBI is a periodic cash payment delivered to all on an individual basis without means test or work requirement.
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Question 3. “Fighting drugs” (30 raw points)

Chicago is one of the largest cities in the United States with an estimated
population of 2.7 million. Located on the shores of freshwater Lake Michigan,
Chicago is an international hub for finance, culture, commerce, industry, technology,
and transportation. The University of Chicago boasts one of the best economics
departments in the world, with at least 30 Nobel Prize winners affiliated with the
department. Unfortunately, the city of Chicago has had a serious problem with drug
(narcotic) consumption and drug trafficking.
In 2012 alone, there were more homicides in Chicago than in any other
metropolis in the United States — a total of over 500, most of which linked to gang
violence. According to reports in 2013, “most of Chicago’s violent crime comes from
gangs trying to maintain control of drug-selling territories”, and is likely related to the
activities of the Sinaloa Cartel, one of the most powerful Mexican drug cartels, which
by 2006 sought to control illicit drug distribution.
Chicago’s reputation of a drug trafficking city costs it billions of dollars every
year in lost consumption, investment, and unnecessary spending. Chicago public
policy officials aspire to reduce drug consumption as it produces negative
externalities, which harm the society as a whole, not just the drug addicts.
a) (10 rp) Name at least four negative externalities of drug consumption. Be
specific and discuss how, and to what extent, they harm society. Can you think of any
positive externalities of drug consumption? Elaborate.
b) (10 rp) Officials have the choice of punishing drug dealers (supply side),
drug users (demand side), both or neither, with different levels of severity. Why might
you want to target the supply side (drug dealers) as against the demand side (drug
users)? Why might you want to target the demand side (drug users) as against the
supply side (drug dealers)?
Give at least three examples of each. Based on your understanding of the
drug-related issues, what problems do you foresee with implementing both policies?
c) (10 rp) Design a specific public policy that you think would be best in
reducing drug consumption in Chicago. Bear in mind the specific issues of drug-
related problems, for example (1) the fact that drugs are addictive; 2) drug production
is illegal in most countries; 3) selling drugs is often connected with violence and other
types of crime.
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Question 4. “Inequality of Opportunity” (30 raw points)
Economists often talk about two types of inequality – inequality of outcomes (such as
income inequality) and inequality of opportunity.
a) (15 rp) Give an example of inequality of opportunity. Explain why
inequality of opportunity, as opposed to inequality of outcomes, is considered
detrimental for economic efficiency and social welfare.
b) (15 rp) There are several well-established measures of income inequality,
such as the Gini index. How would you go about measuring inequality of opportunity
in a country?
Question 5. “Connecting Short Run and Long Run” (30 raw points)
Fighting economic crises and recessions has become one of the well-recognized
functions of government. But are the fluctuations around the trend really important?
In most recessions, the fall in GDP is not more than 3-4 % and the return to the trend
is relatively quick. Moreover, one may argue that what is lost in a recession, may be
recovered during a boom. In contrast, a one-percentage-point increase in the rate of
economic growth can accumulate into a severalfold rise in GDP over the years. So
shouldn’t we abandon fighting recessions and concentrate fully on long-term growth
instead? This task asks you to explore some connections between short run and long
run and discuss if recessions are necessarily worth fighting.
a) (10 rp) Argue why recessions may have a long-term negative effect on
labor market and therefore may slow down long-term growth.
b) (10 rp) Suppose that banks require a minimum level of collateral for loans,
and it limits a lot of entrepreneurs from getting loans. Argue why recessions may have
a negative effect on the rate of long-term innovation, while booms don’t have the
opposing positive effect.
c) (10 rp) Alternatively, suppose that banks do not know the quality of the
investment projects of entrepreneurs and offer all applicants the same loan rate, such
that it allows banks to at least break even. Argue why recessions might be stimulating
long-run economic growth.
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Câu 1. Một tiệm tạp hoá địa phương có chương trình giảm giá 20% nếu khách hàng
trả phí hàng tháng 10 USD. Mức chi tiêu hàng tháng của một khách hàng tại cửa
tiệm này phải là bao nhiêu thì cô ấy nên tham gia chương trình này?
1) Ít nhất 10 USD 2) Ít nhất 30 USD
3) Ít nhất 50 USD 4) Ít nhất 60 USD
Câu 2. Ba nước A, B, C đều chỉ trồng dưa hấu (X) và bưởi (Y). Các đường giới hạn
khả năng sản xuất của mỗi nước lần lượt là: XA + YA = 100, 2XB + 3YB =300, XC +
2YC = 600. Nếu họ muốn có ít nhất 200 quả bưởi thì số lượng tối đa dưa hấu mà ba
nước có thể thu là bao nhiêu?
1) 200 2) 500 3) 600 4) Đáp án khác
Câu 3. GDP nước X tăng 1%/năm hàng năm. GDP nước Y tăng 2%/năm hàng năm.
Nếu năm 2019 hai nước có cùng GDP thì đến năm nào GDP của họ sẽ cách biệt 2
lần? (Chọn đáp án gần nhất)
1) 2050 2) 2090 3) 2150 4) 2180
Câu 4. Jane tiêu hết toàn bộ tiền để mua nguyên liệu cho món cocktail ưa thích của
mình. Để làm 1 cốc cocktail, cô ấy pha 200ml nước cam với 100 ml nước táo và
200ml nước lọc. Các loại nước quả có giá 3 USD/lít, nước lọc giá 0.5 USD/lít. Nếu
lúc đầu Jane có 20 USD hỏi cô ấy có thể làm được bao nhiêu cốc cocktail?
1) 10 2) 12 3) 20 4) Đáp án khác
Câu 5. Mệnh đề nào dưới đây mô tả đúng nhất khái niệm công cụ cam kết?
1) Một học sinh tuyên bố trên mạng xã hội rằng mình sẽ đóng góp từ thiện mỗi lần
bị điểm dưới B và sẽ đăng tải hình ảnh chứng nhận từ thiện lên mạng.
2) Một nguyên thủ quốc gia tuyên bố chính sách mới chống tham nhũng bằng cách
gia tăng mức tiền phạt đối với công chức tham nhũng.
3) Một nhà đầu tư mua trái phiếu kho bạc dài hạn.
4) Giá kem tăng sau khi chứng kiến nhu cầu tăng cao
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Câu 6. Học giả nào dưới đây đại diện cho thuyết định chế hiện đại về tăng trưởng
kinh tế?
1) Daron Acemoglu 2) Jared Diamond 3) Thomas Malthus 4) Adam Smith
Câu 7. Đường cầu và cung cho phụ tùng lần lượt là Q = 100 – 2P và Q = -20 + P.
Chính phủ quy định mức giá trần P , dẫn đến mức thiếu hụt về lượng trên thị trường
là 30. Tìm P .
1) P  10 2) P  20 3) P  30 4) P  40
Câu 8. Câu nào dưới đây mô tả đúng nhất khái niệm độc quyền tự nhiên?
1) Độc quyền thân thiện với môi trường
2) Một công ty sản xuất với mức chi phí trung bình thấp hơn hai hay nhiều công
ty khác
3) Độc quyền ở thị trường nông nghiệp
4) Độc quyền được tạo nên mà không có sự can thiệp của nhà nước
Câu 9. Xét một thị trường cạnh tranh hoàn hảo trong đó tất cả các công ty có chi
phí bình quân bằng nhau và không đổi (ngành công nghiệp chi phí bất biến). Việc
tăng cầu sẽ ảnh hưởng thế nào đến giá cân bằng trong dài hạn của thị trường đó?
1) Giá tăng 2) Giá không đổi 3) Giá giảm 4) Không rõ
Câu 10. Bạn dự định mua một chiếc laptop giá 1000 USD. Bạn có thể rút tiền từ tài
khoản ngân hàng (lãi suất 10%/năm), hoặc lựa chọn sử dụng một trong số các kế
hoạch tín dụng dưới đây. Kế hoạch nào sẽ khiến bạn tiêu tổng cộng nhiều tiền nhất?
1) Tiêu trực tiếp từ tài khoản ngân hàng
2) Trả tín dụng lãi kép 0.1%/ngày, trả một lần vào cuối năm
3) Trả tín dụng lãi suất 12%/năm, trả một lần vào cuối năm
4) Trả tín dụng lãi kép 0.5%/tháng, trả một lần vào cuối năm
Câu 11. Một thị trường cạnh tranh hoàn hảo có 100 công ty, mỗi công ty có chi phí
cận biên MC = 10 không đổi. Biết đường cầu là Q = 100 -P. Nếu tất cả các công ty
cùng nhau thỏa thuận một các-ten và tối đa hoá lợi nhuận chung thì giá thị trường sẽ
tăng lên bao nhiêu?
1) Tăng 15 2) Tăng 35 3) Tăng 45 4) Tăng 50
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Câu 12. Sự kiện nào sau đây xảy ra vào đầu thế kỉ 21?
1) Cuộc Đại Khủng hoảng
2) Cuộc Đại Suy thoái
3) Cuộc Cách mạng Công nghiệp lần thứ nhất
4) Sự sụp đổ của chế độ bản vị vàng
Câu 13. Công ty S là một nhà độc quyền trong thị trường du hành vũ trụ. Cầu của
dịch vụ này không mang tính liên tục: khách hàng sẵn sàng trả 12 triệu USD cho
chuyến đi đầu tiên, 11 triệu cho chuyến thứ hai, v.v. cho đến 1 triệu cho chuyến đi
thứ 12. Để tổ chức cho một chuyến đi, công ty phải chi 4 triệu USD. Hỏi sự chênh
lệch giữa lợi nhuận tối đa mà công ty S có thể đạt được khi áp dụng chiến lược phân
biệt giá hoàn hảo và khi áp dụng giá tuyến tính?
1) 10 triệu 2) 16 triệu 3) 20 triệu 4) Đáp án khác
Câu 14. Có thể em đã từng nghe nhiều câu chuyện thành công của các nhà đầu tư
kiếm được rất nhiều tiền từ thị trường chứng khoán. Trong khi đó, các câu chuyện về
sự thất bại thường ít được kể. Điều này có thể tạo nên hiểu nhầm rằng đầu tư vào thị
trường chứng khoán luôn mang lại lợi nhuận. Lỗi nguỵ biện trong lập luận này gọi
là…?
1) Hiệu ứng thiên vị sinh tồn 2) Thiên kiến xác nhận
3) Lời tiên tri tự ứng nghiệm 4) Hiệu ứng sở hữu
Câu 15. Câu nào dưới đây mô tả đúng nhất khái niệm bẫy thanh khoản?
1) Một người không thể rút tiền khỏi tài khoản vì ngân hàng phá sản
2) Một công ty muốn đầu tư số tiền kiếm được nhưng không tìm được dự án xứng
đáng
3) Chính phủ nợ nhiều đến mức vỡ nợ
4) Lãi suất thấp khiến người dân có xu hướng tích trữ tiền mặt
Câu 16. Câu nào dưới đây mô tả đúng nhất khái niệm cán cân thương mại thâm hụt?
1) Một đất nước nhập khẩu nhiều hơn xuất khẩu
2) Một đất nước nhập khẩu ít hơn xuất khẩu
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3) GDP của một nước giảm trong suốt hơn 3 quý

4) FDI của một nước giảm trong suốt hơn 3 quý
Câu 17. Chính sách nào dưới đây có khả năng giảm hệ số Gini nhất?
1) Thuế thu nhập luỹ tiến
2) Thuế thu nhập luỹ thoái
3) Thuế thu nhập phẳng (Thuế thu nhập cố định)
4) Đáp án khác
Câu 18. Câu nào dưới đây mô tả đúng nhất khái niệm hiệu ứng mạng lưới?
1) Dịch vụ được cung cấp trực tuyến
2) Các nhà sản xuất sử dụng mô hình tiếp thị đa cấp để thu hút khách hàng mới
3) Tiện ích cá nhân từ việc sử dụng một dịch vụ gia tăng cùng với sự tăng lên của
tổng số khách hàng
4) Thuế suất cận biên tăng khi thu nhập tăng
Câu 19. Công cụ nào dưới đây đặc biệt mang tính rủi ro nhất?
1) Tín phiếu kho bạc Mỹ
2) Cổ phiếu phổ thông của một công ty từ S&P 500
3) Gửi tiền vào một ngân hàng thương mại
4) Cổ phiếu của một công ty startup ở Thung Lũng Silicon
Câu 20. Chính sách nào dưới đây sẽ làm giảm GDP ngắn hạn (sử dụng mô hình
AS/AD)?
1) Gia tăng thuế suất doanh thu
2) Giảm thuế suất thu nhập
3) Nới lỏng định lượng
4) Mua tài sản ở thị trường mở
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Câu 1. “Thiết kế cơ chế” (30 điểm)
Có ba bạn nhỏ: Alice, Bob và Clara. Mẹ của các bạn muốn chia một chiếc
bánh có kích cỡ 1 thành ba phần để cho ba bạn. Bạn nào cũng muốn ăn nhiều bánh
nhất có thể.
a) (10 điểm) Xét cách chia sau. Alice cắt bánh theo cách mà bạn ấy muốn,
sau đó Bob lấy phần mình thích, rồi đến Clara lựa chọn trong 2 phần còn lại, còn
Alice nhận phần cuối cùng. Vậy Alice sẽ cắt bánh như thế nào?
b) (20 điểm) Xét một trường hợp phức tạp hơn. Các bạn nhỏ sẽ không vui nếu
nhận được ít hơn một phần nhất định của chiếc bánh. Cụ thể, Alice sẽ chỉ hài lòng
khi nhận được miếng bánh cỡ a trở lên, Bob muốn ít nhất cỡ b và Clara yêu cầu phải
từ cỡ c. Đối với cả ba bạn, nhận được miếng bánh cỡ nhỏ nhất theo yêu cầu thì tốt
hơn là không có bánh, và cũng tốt hơn là miếng bánh nhỏ hơn kích cỡ tối thiểu mình
mong muốn. Tuy nhiên, nếu đã đảm bảo nhận được miếng bánh theo yêu cầu tối
thiểu của mình, các bạn nhỏ vẫn sẽ mong có được nhiều bánh hơn nữa. Mẹ của ba
bạn biết rằng 0 < a, b, c < 1 nhưng không biết cụ thể ba số a, b, c. Cả ba bạn nhỏ
thì lại biết rõ ba số này. Với số a, b, c nào thì có thể đảm bảo cả ba bạn nhỏ hài
lòng với phần bánh của mình? Hãy đề xuất một cách chia?
Câu 2. “AItomation” - “Trí tuệ nhân tạo hóa” (30 điểm)

Tăng trưởng kinh tế trong 150 năm qua phần lớn là kết quả của tự động hoá
– các công nghệ mới giúp tự động hoá những công việc lặp đi lặp lại trước đây do
nhân công đảm nhiệm. Động cơ hơi nước, điện, chip máy tính – tất cả các công nghệ
này đều đóng góp phần lớn vào tăng trưởng kinh tế và xoá bỏ việc làm.
Làn sóng tự động hoá gần đây nhất – sự nổi lên của trí tuệ nhân tạo (AI) – có
xu hướng tự động hoá không chỉ những công việc kĩ năng thấp mà còn cả những việc
không mang tính lặp lại và đòi hỏi tư duy như lái xe hay đề xuất các khuyến nghị y
tế. Điều này làm dấy lên lo ngại trên diện rộng rằng trí tuệ nhân tạo có thể dẫn đến
thất nghiệp tràn lan trong các thập kỉ tới. Câu hỏi này yêu cầu em đưa ra nhận xét
về những tiến bộ dưới đây từ góc nhìn kinh tế học.
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a) (10 điểm) Xét mô hình đơn giản sau. Giả sử trong một ngành công nghiệp
nhất định (ví dụ dệt may), sản lượng (Q) bằng mức độ tự động hoá (A) nhân với số
nhân công (L): Q = AL. Ngành này mang tính chất cạnh tranh. Mức lương được cố
định ở mức w. Cầu trong thị trường dệt may bằng D(p) trong đó p là mức giá còn D là
một hàm giảm. Điểm cân bằng kinh tế đạt được ở mức giá p khi mà cầu bằng cung.
Giả sử mức độ tự động hoá (A) tăng nên ngành cần ít nhân công hơn để sản xuất một
lượng vải nhất định. Liệu số nhân công được thuê ở điểm cân bằng thị trường có giảm
theo không? Hãy viết lời giải thích từ những nhận định của em về mô hình này.
Các phần dưới đây không áp dụng mô hình ở trên.
b) (10 điểm) Một số nhà khoa học nhận định rằng tăng trưởng đầu ra kinh tế
dựa trên trí tuệ nhân tạo và tự động hoá sẽ dẫn đến gia tăng tổng mức thu nhập, và
kéo theo gia tăng cầu, bao gồm cả cầu đối với những hàng hoá và dịch vụ mới ngoài
dự kiến. Tất cả những điều này sẽ giúp tạo ra việc làm mới và giúp giảm thiểu tình
trạng thất nghiệp. Em hãy phản biện lại lập luận này.
c) (10 điểm) Nhiều người cho rằng viện trợ công cho Thu nhập Cơ bản Phổ
quát (Thu nhập cơ bản vô điều kiện/Thu nhập cơ bản cho toàn dân) (UBI)7 là một
phương án tốt để giải quyết vấn đề mất việc làm trên diện rộng. Em hãy chỉ ra và đề
xuất cách giải quyết các vấn đề chính đối với UBI trên phương diện cấp tài chính cho
hệ thống và phương diện động lực làm việc (từng khía cạnh một).
Câu 3: “Xử lý vấn nạn chất gây nghiện” (30 điểm)

Chicago là một trong những thành phố lớn nhất Hoa Kì với dân số ước tính
2.7 triệu người. Nằm bên bờ hồ nước ngọt Lake Michigan, Chicago là trung tâm tài
chính, văn hoá, thương mại, công nghiệp, công nghệ và giao thông quốc tế. Đại học
Chicago có khoa Kinh tế thuộc top đầu thế giới với ít nhất 30 nhà khoa học đạt giải
Nobel. Tuy nhiên, thành phố Chicago lại chứng kiến một vấn đề nhức nhối với nạn
tiêu dùng và buôn bán trái phép chất gây nghiện (chất cấm).
Riêng trong năm 2012, số vụ giết người ở Chicago nhiều hơn bất cứ đô thị
nào tại Hoa Kì – tổng số hơn 500 vụ, chủ yếu liên quan đến vấn đề tranh chấp giữa
các băng đảng xã hội. Theo các báo cáo năm 2013, “phần lớn các vụ phạm tội bạo
lực tại Chicago bắt nguồn từ việc các băng đảng tranh giành quyền kiểm soát các
7 UBI là chương trình phát tiền mặt định kì cho cá nhân không kèm theo điều kiện về việc làm
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địa hạt buôn bán chất cấm”, và nhiều khả năng liên quan đến các hoạt động của
Sinoala Cartel, một trong những các-ten chất cấm quyền lực nhất của Mexico, từ năm
2006 tuyên bố có hiệu lực kiểm soát việc phân phối chất cấm bất hợp pháp.
Vấn nạn buôn bán chất gây nghiện khiến Chicago thiệt hại hàng tỷ USD mỗi
năm do tổn thất về tiêu dùng, đầu tư và những chi phí không cần thiết. Các nhà hoạch
định chính sách công của Chicago rất mong muốn giảm thiểu nạn tiêu dùng chất gây
nghiện bởi vấn nạn này gây ra những ngoại ứng tiêu cực, làm tổn hại đến không chỉ
những người nghiện chất cấm mà tới toàn xã hội.
a) (10 điểm) Kể tên ít nhất bốn ngoại ứng tiêu cực của việc tiêu dùng chất gây
nghiện. Em hãy lập luận thật cụ thể về việc những ngoại ứng này tác động xấu đến
xã hội như thế nào và ở mức độ nào. Em có thể nghĩ tới ngoại ứng tích cực nào của
việc tiêu dùng chất gây nghiện không? Hãy giải thích cụ thể.
b) (10 điểm) Các công chức Chính phủ có thể lựa chọn xử phạt người buôn
bán chất cấm (cung), người tiêu dùng chất cấm (cầu), cả hai hoặc không bên nào
cả, với mức độ xử phạt khác nhau. Trong bối cảnh đó, vì sao em có thể muốn nhắm
đến phía cung (người buôn bán) thay vì phía cầu (người sử dụng)? Và ngược lại, vì
sao em có thể muốn tập trung vào phía cầu (người sử dụng) hơn phía cung (người
buôn bán)? Nêu ít nhất ba ví dụ cho mỗi trường hợp. Dựa vào những hiểu biết của
em về các vấn đề liên quan đến chất cấm, em dự đoán có những vấn đề nào có thể
xảy ra khi triển khai cả hai chính sách?
c) (10 điểm) Xây dựng một chính sách công cụ thể mà em cho rằng sẽ là
phương án tốt nhất để giảm thiểu tình trạng tiêu thụ chất gây nghiện tại Chicago. Lưu
ý những điểm đáng quan tâm trong các vấn đề liên quan đến chất cấm, ví dụ 1) Đây
là các chất gây nghiện, 2) Sản xuất chất cấm được coi là bất hợp pháp ở hầu hết
các nước, và 3) Buôn bán chất cấm thường kéo theo bạo lực và các hình thức phạm
tội khác.
Câu 4: “Bất bình đẳng về cơ hội” (30 điểm)

Các nhà Kinh tế học thường nhắc đến hai loại bất bình đẳng – bất bình đẳng
về kết quả (ví dụ bất bình đẳng thu nhập) và bất bình đẳng về cơ hội.
a) (15 điểm) Lấy một ví dụ về bất bình đẳng về cơ hội. Giải thích tại sao bất
bình đẳng về cơ hội, thay vì bất bình đẳng về kết quả, được cho là gây tổn hại đến
hiệu suất kinh tế và phúc lợi xã hội?
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b) (15 điểm) Có nhiều cách đo lường bất bình đẳng về thu nhập đã tồn tại và
được sử dụng trong thời gian dài, ví dụ như chỉ số Gini. Vậy nếu phải giải quyết việc
đo lường bất bình đẳng về cơ hội của một quốc gia, em sẽ thực hiện như thế nào
Câu 5: “Kết nối ngắn hạn và dài hạn” (30 điểm)

Xử lí các cuộc khủng hoảng và suy thoái kinh tế là một trong những nhiệm vụ
chính của Chính phủ. Nhưng những dao động lên xuống xung quanh một xu hướng
chung liệu có thực sự đáng lo? Trong hầu hết các cuộc suy thoái, sự sụt giảm GDP
thường không quá 3 – 4% và phục hồi lại xu hướng cũ tương đối nhanh. Hơn nữa,
có thể lập luận rằng những tổn thất xảy ra trong giai đoạn suy thoái có thể được
phục hồi ở thời kì bùng nổ. Ngược lại, tốc độ tăng trưởng kinh tế tăng 1% điểm có
thể kéo theo GDP tăng gấp nhiều lần trong những năm tiếp theo. Vậy phải chẳng
chúng ta nên bỏ qua những cuộc suy thoái mà thay vào đó, tập trung toàn lực vào
tăng trưởng dài hạn? Câu hỏi này yêu cầu em tìm hiểu về sự liên hệ giữa ngắn hạn
và dài hạn và lập luận về việc liệu các cuộc suy thoái liệu có đáng để quan tâm.
a) (10 điểm) Hãy lập luận vì sao suy thoái kinh tế có thể gây ảnh hưởng tiêu
cực dài hạn đối với thị trường lao động, và do đó làm chậm tốc độ tăng trưởng dài
hạn?
b) (10 điểm ) Giả sử các ngân hàng yêu cầu tài sản thế chấp ở một mức tối
thiểu cho các khoản vay, dẫn đến việc rất nhiều chủ doanh nghiệp không vay được
tiền. Hãy lập luận vì sao các cuộc suy thoái có thể gây ảnh hưởng tiêu cực đến tốc
độ đổi mới sáng tạo trong dài hạn, trong khi bùng nổ kinh tế không mang lại những
ảnh hưởng tích cực theo hướng ngược lại.
c) (10 điểm) Trong một trường hợp khác, giả sử các ngân hàng không đánh
giá được chất lượng của các dự án đầu tư của các chủ doanh nghiệp và áp dụng
cùng một lãi suất vay cho tất cả các ứng viên, theo đó các ngân hàng ít nhất có thể
bù trừ đều nhau giữa các dự án. Hãy lập luận vì sao các cuộc suy thoái có thể kích
thích tăng trưởng kinh tế dài hạn?
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each question.
1. The local grocery store offers a discount of 20% if a customer pays the 10 USD
monthly fee. How much should a customer’s monthly spending in this store be so that
paying this fee makes sense for her?
2. Countries A, B and C produce only watermelons ( ) and grapefruits ( ). The

production possibility frontiers are given by: + = 100, 2 +3 = 300,
+2 = 600. What is the maximum amount of watermelons that they can produce
together if they want to produce at least 200 grapefruits?
1) 200 2) 500
3. GDP of the country X grows by 1% per year every year. GDP of the country Y
grows by 2% per year every year. If in the year 2019 countries have equal GDP, by
what year will their GDP differ by two times? (Choose the nearest estimate).
1) 2050 2) 2090 3) 2150 4) 2180
4. Jane spends all her money on the ingredients of her favorite cocktail. To make a
portion of the cocktail, she has to mix 200 ml of orange juice with 100 ml of apple
juice and with 200 ml of watber. Any juice costs 3 USD per liter, water costs 0.5 USD
per liter. If she has 20 USD, how many portions of the cocktail can she make?
1) 10 2) 12
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5. Which of the following statements best describes the concept of commitment

device?
1) A student announces through social media that he will contribute
to charity every time he gets a grade lower than B- and publish the
receipts online.
2) A country leader announces the new policy of fighting corruption through
increased fines for corrupt officials.
3) An investor buys treasury bonds.
4) The price of ice-creams increases after a surge in demand.
6. Which of the following scholars represents the modern institutional theory of

economic growth?
1) Daron Acemoglu 2) Jared Diamond
3) Thomas Malthus 4) Adam Smith
7. The demand for widgets is given by = 100 – 2 , the supply is given by = –20
+ . The government sets the price ceiling at P which results in the deficit 30. Find P
1) P = 10 2) P = 20 3) P = 30 4) P = 40
8. Which of the following best describes natural monopoly?

1) An eco-friendly monopoly.
2) A firm that can produce at lower average costs than two or more
firms.
3) A monopoly on the agricultural market.
4) A monopoly that was created without government intervention.
9. Consider a perfectly competitive market where all firms have constant and equal
average cost (a constant cost industry). How will an increase in demand affect the
long run equilibrium price on such a market?
1) Price will increase 2) The price will remain constant
3) The price will decrease 4) Unclear
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10. You are going to buy a laptop for 1,000 USD. You can either withdraw this
money from your bank account (it pays 10% interest yearly) or do it using one of the
following credit schemes. Pick the scheme in which you will spend the most amount of
money overall.
1) Paying directly from you bank account.
2) Credit at 0.1% compound interest per day, the only payment is at
the end of the year.
3) Credit at 12% interest rate per year, the only payment is at the end of the year.
4) Credit at 0.5% compound interest per month, the only payment is at the end of
the year.
11. A perfectly competitive market has 100 firms, each of which has constant =
10. The demand function is given by = 100 - . How much will the market price
increase if all firms create a cartel and maximize joint profit?
1) By 15 2) By 35 3) By 45 4) By 50
12. Which of the following happened at the beginning on the 21st century?
1) The Great Depression 2) The Great Recession
3) The First Industrial Revolution 4) Collapse of the gold standard
13. Firm S is a monopolist on the market for space tourism. The demand for its service
is discrete: consumers are eager to pay 12M USD for the first trip, 11M USD for the
second trip, etc., up to 1M USD for the 12th trip. To organize a trip, the firm must
spend 4M USD. What is the difference between the maximum profit that the firm S
can obtain with the perfect price discrimination compared to linear pricing?
1) 10M 2) 16M
3) 20M 4) None of the above
14. You can often hear the success stories of investors who earn a lot of money at the
stock market. At the same time, the stories of many failures remain untold. This can
create a wrong impression that investing in the stock market is always profitable. This
logical fallacy is called...
1) Survivorship bias 2) Confirmation bias
3) Self-fulfilling prophecy 4) Endowment effect
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15. Which of the following best describes the concept of liquidity trap?
1) A person cannot withdraw money from his bank account because of the bank’s
bankruptcy.
2) A firm wants to invest money earned but cannot find projects worth investing in.
3) A government has so much debt that it has to default.
4) The interest rate is so low that people prefer holding cash.
16. Which of the following best describes the concept of negative trade balance?
1) A country buys from abroad more than it sells abroad.
2) A country buys from abroad less than it sells abroad.
3) A country’s GDP declines for more than three quarters.
4) A country’s FDI declines for more than three quarters.
17. Which of the following policies will most likely reduce the Gini coefficient?
1) Progressive income tax. 2) Regressive income tax.
3) Fixed rate income tax. 4) None of the above.
18. Which of the following statements best describes the concept of network
externality?
1) The service is provided on-line.
2) Producer uses multilevel marketing to attract new customers.
3) The individual utility of using a service increases with the total
number of users.
4) The marginal tax rate increases with an increase of income.
19. Which of the following instruments is typically the riskiest one?

1) U.S. Treasury bills
2) Common stocks of a company from S&P 500
3) Deposit in a commercial bank
4) Shares of a startup in Silicon Valley
20. Choose the government policy that will by itself reduce short-run GDP (use the
AD-AS model).
1) Increase in the sales tax rate 2) Decrease in the income tax rate
3) Quantitative easing 4) Buying assets on the open market
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Phần thi Tự luận/Câu hỏi mở - Open Questions
Solve no more than 4 questions out of 5. Indicate your choice of questions to grade
If you want to leave the room for a while, raise your hand and ask a volunteer.
Good luck!
Question 1. “Mechanism Design” (30 raw points)

There are three kids: Alice, Bob and Clara. Their mother wants to split a cake
of size 1 into three pieces and distribute them among the kids. Every kid wants to eat
as much cake as possible.
a) (10 rp) Consider the following mechanism. Alice cuts the cake in three
pieces the way she likes; then Bob takes any piece he likes, and then Clara takes any
piece she likes (of the two that are left), so Alice is left with another remaining piece.
How will Alice cut the cake?
b) (20 rp) Now consider a more complicated situation. A kid is unhappy if he
or she gets less than a certain share of a cake. In particular, Alice will be happy if
she gets at least a piece of size , Bob needs at least , Clara needs at least . For
every kid, getting a piece of the minimum required size is better than getting no cake,
which is, in turn, better than getting a piece of less than the minimum required size.
If one is already happy, he or she nevertheless prefer getting more cake to less cake.
The mother knows that 0 < , , < 1 but does not know , or . All three children
know all three numbers. Under which , , does a mechanism that ensures each of
the kids is happy exist? Suggest such a mechanism.
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Solution
a) She should divide the cake in 3 equal parts. Othewise, hers sibling will take
the larger pieces and she will be left with the smallest one.
b) Such mechanism cannot exist if + + > 1. In this case, the cake is too
small to make everyone happy. We will show that the mechanism exists for any , ,
such that + + ⩽ 1.
For example, the following mechanism can be applied. Alice offers some
distribution of the cake to her siblings. Each of the siblings then votes in favour or
against this distribution.
If both votes are in favour, the distribution is accepted. Otherwise, no one gets
anything.
In such a mechanism, Alice has an incentive to offer the distribution that makes
both siblings and herself happy (which is always possible as long as + + ⩽ 1).
Bob and Clara have incentives to accept such distribution because they will get
nothing otherwise. Should Alice offer any distribution which makes Bob or Clara
unhappy, the unhappy sibling(s) will vote against because they prefer to get nothing.
The crucial features of any proposed mechanism are the following:
1. The distribution of a cake among the kids must be done one of them
(because the mother is unaware of , , values).
2. If suggested distribution doesn’t satisfy kids’ minimal requirements,
everyone gets nothing.
Marking Scheme.
a) Right answer and correct explanation – 10 rp; only right answer – 5 rp.
b) Correct mechanism is developed (both necessary features are satisfied) with
complete explanation why it works, the right answer is provided and necessity of
constraint is explained – 20 rp, if solution is given without explanation of the necessity
of the constraint – 15 rp.
Correct mechanism is developed with complete explanation why it works, but
only fea ture 2 is indicated, a right answer is provided and necessity of constraint is
explained – 15 rp.; without answer or without explanation of the necessity of the
constraint– 10 rp.
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Correct mechanism is developed (both necessary features are indicated), but

is not explained why it works, a right answer is provided and necessity of constraint
is explained – 10 rp. If only one necessary feature is indicated, explanation is absent
or a right answer is not provided or explanation of the necessity of the constraint is
absent – 5 rp.
No correct mechanism is developed, only necessary constraint is revealed and
is explained – 2 rp.; without explanation – 0 rp.
Question 2. “AItomation” (30 raw points)

The economic growth of the last 150 years has been largely driven by
automation – new technologies that allowed mechanization of routine tasks previously
performed by labor. The steam engine, electricity, computer chips – all these
technologies both contributed significantly to economic growth and destroyed jobs.
The most recent wave of automation – the rise of Artificial Intelligence (AI) –
seems to be able to automate not only low-skill, physical tasks but also non-routine,
cognitive tasks such as driving cars and making medical recommendations. This
seems to spur widespread anxiety that artificial intelligence may create mass
unemployment in the decades to come. In this task, you are asked to comment on
these developments from an economic standpoint.
a) (10 rp) Consider the following simple model. Suppose in a certain industry
(say, textiles) the quantity produced ( ) is equal to the degree of automation ( ) times
the number of workers ( ): = . The industry is competitive. The wage is fixed at
the level . The demand for textiles is equal to ( ) where is price, and is a
decreasing function. Economic equilibrium occurs at a price such that demand
equals supply. Suppose the degree of automation ( ) grows so that now the industry
needs fewer workers to produce a given amount of textiles. Will the equilibrium
number of workers employed by the industry necessarily fall as a result? Provide a
verbal explanation of the insight you get from the model. In the following parts, do
not limit your argumentation to the model above.
b) (10 rp) A number of authors note that the growth of economic output due
to AI and automation will lead to an increase in aggregate incomes, and thus
demand, including the demand for new goods and services that are now barely
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imagined. All this will create new jobs and thus alleviate the problem of
unemployment. Criticize this argument.
c) (10 rp) Many people think that publicly financed Universal Basic Income (UBI)8 is
a good solution to the problem of mass joblessness. Identify and address the main
problems with the UBI in terms of financing the system and motivation to work (one
of each).
Solution
a) The supply will grow, which will increase the equilibrium quantity
demanded due to price effect which will counter the productivity effect. This might
increase the demand for labor and employment (due to sticky wages).
Mathematically, one gets
( ) = ( / )/ .
The increasing denominator is the productivity effect, while the increasing numerator
is the price effect. When the price effect is larger than the productivity effect, will
increase in . This happens when demand price elasticity is sufficiently large.
Mathematically, one may show that the elasticity should be larger than one.
b) New goods and services might be in the other fields – different from the
fields where AI created unemployment. If new goods and services are AI intensive,
the growth of employment might be limited. Here we can talk about Structural
unemployment which can be solved in the long-run through training and education.
The aspect of low-skilled and high skilled
labor should be addressed, since AI is taking over low-skilled jobs and creating high-
skilled jobs (partially solving created unemployment).
c) Universal Basic Income. Student should look at this concept in complex
approach and not just concentrating on the questions asked (very narrow approach).
Universal Basic Income is a concept where students have to keep in mind the
positive aspects of the concept:
• Universal Basic Income (UBI) reduces poverty and income inequality, and
improves health
• UBI leads to positive job growth and lower school dropout rates
8 UBI is a periodic cash payment delivered to all on an individual basis without means test or work requirement.
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• UBI guarantees income for non-working parents and caregivers, thus

empowering important unpaid roles, especially for women.
1) How to finance the UBI system. On one hand, UBI should go to the
consumption, thus increasing firms’ revenues and generating more income tax and
more Government income (there are several strong argument against this
assumption). At the same time, research shows that even small size UBI will be
expensive for the governments that would just increase a government debt. The issue
of taxes should be addressed in this question (Laffer curve).
2) Motivation to work. UBI removes the incentive to work, adversely affecting
the economy and leading to a labor and skills shortage. At the same time (not to
generalize the answer) student should address how the size of UBI would leave a
motivational effect on different income level labor.
Marking Scheme.
Marking scheme for every part:
• 0 points — no answer or answer with almost no argumentation.
• 5 points — partial answer — most of the answer is correct and make sense,
but missing some aspects, that doesn’t fully explain the point of view.
• 10 points — full answer that is well argumented and is logical.
All parts are not limited to only these suggested answers. Points will be
awarded if students apply other arguments and they make sense.
Question 3. “Fighting drugs” (30 raw points)

Chicago is one of the largest cities in the United States with an estimated
population of 2.7 million. Located on the shores of freshwater Lake Michigan,
Chicago is an international hub for finance, culture, commerce, industry, technology,
and transportation. The University of Chicago boasts one of the best economics
departments in the world, with at least 30 Nobel Prize winners affiliated with the
department. Unfortunately, the city of Chicago has had a serious problem with drug
(narcotic) consumption and drug trafficking.
In 2012 alone, there were more homicides in Chicago than in any other
metropolis in the United States — a total of over 500, most of which linked to gang
violence. According to reports in 2013, “most of Chicago’s violent crime comes from
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gangs trying to maintain control of drug-selling territories”, and is likely related to the
activities of the Sinaloa Cartel, one of the most powerful Mexican drug cartels, which
by 2006 sought to control illicit drug distribution.
Chicago’s reputation of a drug trafficking city costs it billions of dollars every
year in lost consumption, investment, and unnecessary spending. Chicago public
policy officials aspire to reduce drug consumption as it produces negative
externalities, which harm the society as a whole, not just the drug addicts.
a) (10 rp) Name at least four negative externalities of drug consumption. Be
specific and discuss how, and to what extent, they harm society. Can you think of any
positive externalities of drug consumption? Elaborate.
b) (10 rp) Officials have the choice of punishing drug dealers (supply side),
drug users (demand side), both or neither, with different levels of severity. Why might
you want to target the supply side (drug dealers) as against the demand side (drug
users)? Why might you want to target the demand side (drug users) as against the
supply side (drug dealers)?
Give at least three examples of each. Based on your understanding of the
drug-related issues, what problems do you foresee with implementing both policies?
c) (10 rp) Design a specific public policy that you think would be best in
reducing drug consumption in Chicago. Bear in mind the specific issues of drug-
related problems, for example (1) the fact that drugs are addictive; 2) drug production
is illegal in most countries; 3) selling drugs is often connected with violence and other
types of crime.
Solution
a) An externality is the cost or benefit that affects a third party, so one who
did not choose to incur that cost or benefit. Drugs in the question concerned illegal
narcotics, not medical products certified by relevant medical officials.
The answer should be insightful, clearly worded and unambiguous. The
answer should show that the author deeply understands the problem. Answers that
were clear and avoid wordiness are given extra marks. The answer should contain
no errors of significance.
Correct answers include, but are not limited to, the healthcare costs that sick
drug addicts incur on the public healthcare system in countries where such system
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exists or lower level of safety among non-drug users in areas where drug cartels
operate.
Internalities such as deteriorating health of drug users or diminished income
of drug addicts are not externalities and won’t be considered. Similarly, the reasons
why drugs are bad for society are not necessarily negative externalities. Also note
that the question concerned drug consumption, not drug production.
b) The supply-side is more elastic to punishment. Therefore, measures targeted
at reducing supply could be more effective. The demand side is relatively less elastic
because drugs are addictive. Measures targeted at decreasing demand could be less
effective. To get a full score any discussion about relative elasticities is essential.
Problems related to any measure should involve a discussion about externalities. For
instance, if the demand or supply of drugs is targeted and as result “price” of drugs
increase, the amount consumed is unlikely to decrease (inelastic demand) therefore
addicts may do more related crimes to keep consumption levels constant. Hence, any
discussion about externalities is important. The argument related to the heterogeneity
of levels of addiction users (different elasticities of demand depending on the type of
agent) will get additional credit. We require economic reasoning and fully fleshed out
arguments behind answers. We care more about the chain of economic reasoning
than the correct answer. Unspecific moral or ethical concerns such as “drugs are bad
because they are illegal” will not be counted as an answer.
c) This answer should come from a reasoning given in parts (a) and (b). There
are manyways to give a reasonable answer to this question. Discussions could be
about elasticities of supply/demand, eradicating externalities, costs of enforcement,
tradeoffs and constraints of enforcement, probability of adjudication. If the argument
involves some type of mental model, discussion of the assumptions under which the
mechanism is under work will get extra points. The full score will be given if a student
demonstrated knowledge of economic principles in describing the mechanisms of the
argument.
Marking Scheme. Questions are graded on the scale from 0 to 10 with possible scores
being 0, 3, 6, 8 and 10.
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Question 4. “Inequality of Opportunity” (30 raw points)

Economists often talk about two types of inequality – inequality of outcomes
(such as income inequality) and inequality of opportunity.
a) (15 rp) Give an example of inequality of opportunity. Explain why
inequality of opportunity, as opposed to inequality of outcomes, is considered
detrimental for economic efficiency and social welfare.
b) (15 rp) There are several well-established measures of income inequality,
such as the Gini index. How would you go about measuring inequality of opportunity
in a country?
Solution
a) For example, a child of wealthy parents may be more likely to get a high-
paying job than a child of poorer parents because it is easier for the former to get
into an elite university or because the wealthier parents have better connections.
To demonstrate that inequality of opportunity can be bad for social welfare,
consider the following extremely stylized example. Suppose there are two types of
jobs – low-skill and high-skill. Any person working in a low-skill job produces one
unit of output. The output of a person in a high-skill job is equal to her productivity .
Suppose a person from a low-income family happens to have higher productivity than
a person from a rich family: > ℎ.
Ideally, the society would want to let the former have the high-skill job (after
training, if necessary), thus enjoying the total output of 1 + . However, if the
poor is barred from the high-skill job due to inequality of opportunity, the total output
will be 1 + ℎ, which is lower. The moral is that inequality of opportunity acts as
a constraint for a society seeking an optimal allocation of resources.
In contrast, inequality of outcomes can be just a natural consequence of
different abilities and different levels of effort chosen by people, even if the allocation
of resources is optimal.
• 5 points. An adequate example that captures the essence of inequality of
opportunity. No partial credit.
• 10 points. A reasoned explanation of the detrimental consequences of
inequality of opportunity. 5 points if the argument is incomplete or includes minor
mistakes.
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b) A popular approach to measuring inequality of opportunity is to measure

the extent to which parents’ income or wealth determines their children’s income of
wealth. For example, one can consider the parents who are within 10% richest people
and ask which share of their children is also within 10% richest people. Or the other
way around: one may ask which share of 10% poorest people’s children remains in
the bottom 10% of the income distribution. The higher these shares, the higher is the
inequality of opportunity. Indeed, if the rich remain rich and poor remain poor, the
inequality of opportunity must be severe. And vice-versa: if children’s income depends
little on that of their parents’, this probably means that the opportunities are close to
equal.
One can find more information on this topic, as well as research attempting to
compute measures of inequality of opportunity for the US at
https://opportunityinsights.org
15, 10, 5 or 0 points. Grading takes into consideration the proposed measure,
the reasoning behind it, and its feasibility. Partial credit may also indicate minor
mistakes or incorrect arguments.
Question 5. “Connecting Short Run and Long Run” (30 raw points)
Fighting economic crises and recessions has become one of the well-recognized
functions of government. But are the fluctuations around the trend really important?
In most recessions, the fall in GDP is not more than 3-4 % and the return to the trend
is relatively quick. Moreover, one may argue that what is lost in a recession, may be
recovered during a boom. In contrast, a one-percentage-point increase in the rate of
economic growth can accumulate into a severalfold rise in GDP over the years. So
shouldn’t we abandon fighting recessions and concentrate fully on long-term growth
instead? This task asks you to explore some connections between short run and long
run and discuss if recessions are necessarily worth fighting.
a) (10 rp) Argue why recessions may have a long-term negative effect on
labor market and therefore may slow down long-term growth.
b) (10 rp) Suppose that banks require a minimum level of collateral for loans,
and it limits a lot of entrepreneurs from getting loans. Argue why recessions may have
a negative effect on the rate of long-term innovation, while booms don’t have the
opposing positive effect.
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c) (10 rp) Alternatively, suppose that banks do not know the quality of the
investment projects of entrepreneurs and offer all applicants the same loan rate, such
that it allows banks to at least break even. Argue why recessions might be stimulating
long-run economic growth.
Solution
a) 5 rp: Recessions feature a decline in the aggregate demand, and as a
result, a reduction in the demand for labor force. While salaries are mostly fixed
contractually and are hard to change, some workers are fired, while others, mostly
temporary workers, are hired for a smaller number of hours. This leads to higher rates
of unemployment and a reduction in the disposable income of households.
5 rp: Unemployment and a reduction in the disposable income can have a
long-lasting negative effect on the human capital stock in the economy. Some workers
might lose motivation to look for a job or faith and confidence in their ability to find
one, and leave labor force.
Others can chose to leave the country and search for employment in another country
with better economic prospects. A decline in the disposable income can negatively
affect parents’ ability to invest in their kids’ education. Government’s tax revenues are
declining at the same time, so it is also constrained in its spending on education,
further reducing the productivity of labor force in the country.
b) 5 rp: During recessions asset prices fall. So houses or any other tangible
properties are worth less, and therefore, it is harder for entrepreneurs to pass the
collateral hurdle imposed by banks. Entrepreneurs with bright innovation ideas can
not implement them because they are credit-constrained. This hurts the innovation
process, and slows down economic growth.
5 rp: Booms do not have a fully-offsetting positive effect. Innovation ideas that
were very relevant at the time of recession might become obsolete two or three years
later, when the boom period comes. This could be because entrepreneurs in other
countries have implemented them already. Entrepreneurs that had the innovation
ideas in recession might have gotten discouraged and pursued a different career
path. In addition, profitable companies have less incentives to do risky cost-cutting
innovations. Hence, they might be hesitant to do significant business restructurings in
booms, opting for safer but less innovative growth strategies.
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c) 5 rp: When banks can not differentiate between good and bad projects,
they have to offer all borrowers the same rate. Because among the potential borrowers
some are very risky, banks have to charge a very high loan rate to compensate for
the potential losses on bad projects. Both good and bad projects face high cost of
borrowing, since bank can’t tell the two apart. Entrepreneurs with good innovations
face high, potentially prohibitively high, loan rates and are deterred from
implementing their projects.
5 rp: Recessions put out of business a lot of firms, but it hits first the least
profitable firms. Once they go out of business, banks have a better pool of borrowers,
and can offer better loan rates to everyone. Including entrepreneurs with good
innovation projects, which increases economic growth rate.
This is similar to the phenomenon of creative destruction - crisis is a time when
resources are reallocated towards more productive firms through defaults of less
productive ones.
Important, please note: Many students wrote that since the bank offers the
same loan rate to all applicants, it means that entrepreneurs get cheap funding. It is
false, and the opposite is true. The same rate does not by any means imply a low
rate. To break even on a pool of borrowers, some of which are very risky, the bank
has to charge a very high loan rate. Think about payday loans vs mortgages —
payday loans are extremely expensive because a lot of borrowers default on their
loans, and to cover these losses lenders charge all borrowers high rates, sometimes
as high as 1 % a day. Mortgages, on the other hand, have smaller loan rates. This is
because banks first of all screen all borrowers and make sure only credit-worthy
borrowers get the loan, and second, they use the house as a collateral. In case the
mortgage is not repaid, the bank can seize the house and sell it to cover the losses on
the loan. Therefore, the bank can offer a very low rate for mortgages.
Because banks do not know which projects are good or bad, they charge all
projects the same rate. Good projects could have gotten a much smaller rate if the
bank could see the quality of their project, but it can not. Recessions help the good
entrepreneurs reveal to the bank that they are in fact of good quality, and once low
quality entrepreneurs exit the market, high quality entrepreneurs receive loans at a
smaller rate.
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each question.
1. Country A's production possibility frontier is given by the equation X2 + Y2 = 200.

Country B's production possibility frontier is given by the equation X + Y = 100.
Choose the correct statement.
1. For any given X < 100 same for both countries, country A can produce less
of good Y than country B.
2. If the countries want to produce 60 units of X together, the maximum possible
amount of Y that they can produce together equals approximately 54.
3. The opportunity cost of producing an additional unit of X is equal between
the countries at all points of their PPFs.
4. If the countries join their production possibilities, their PPF will be given by
X2 + X + Y2 + Y = 300.
2. Choose the correct statement about monopoly.

5. A monopoly charges the highest price possible on the market.
6. For a non-discriminating monopoly, price equals marginal revenue.
7. Unlike a perfectly competitive firm, the goal of a monopoly is to maximise
average profit.
8. A monopoly would benefit from the ability to sell additional units at a price
lower than the first units.
3. Choose the correct statement about public goods.

1. Public goods are efficiently provided by markets.
2. A public good is a type of a natural monopoly.
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3. A free face mask that you receive from the government is an example of a
public good.
4. National defence is an example of a public good.
4. Choose the correct statement about a perfectly competitive market.

1. Market outcomes are fair, that is, in equilibrium, everyone gets what they
deserve.
2. The distribution of the total surplus between consumers and producers depends
on the relative elasticities of demand and supply.
3. Market equilibrium is Pareto-efficient in the presence of externalities.
4. If the market is monopolized, the quantity produced will rise.
5. The Coase theorem result does NOT apply if…

1. there is a significant externality between two parties.
2. the court system vigorously enforces all contracts.
3. transaction costs make negotiating difficult.
4. both parties understand the externality fully.
6. The plumber labor market of the town X is perfectly competitive, supply is a linear
function that passes through the origin. The equilibrium wage is 10$ per hour. After
the minimum wage of 12$ per hour was introduced, the quantity supplied of labor
increased by 10 workers, the quantity demanded fell by 12 workers. Find the
unemployment rate (pick the nearest estimate).
1. 0%
2. 17%
3. 37%
4. 46%
7. The demand for good X on a monopoly market is given by Q=100-P, the cost
function is TC=Q2+5. How will the monopolist’s output change if the government
introduced the price ceiling at 50?
1. It will increase by 25.
2. It will decrease by 25.
3. It will remain the same.
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8. How many Nash Equilibria are in this game?
1. 0
2. 1
3. 2
4. 4
9. Which of the following policies will most likely increase the Gini coefficient?
(Consider only the immediate effects)
1. A lump-sum tax of 100 dollars for every citizen.
2. Fixed subsidy of 10 dollars for every citizen.
3. Removing the regressive income tax.
4. Neither of the options above.
10. The Nobel Memorial Prize in Economic Sciences in 2019 was awarded…
1. for the experimental approach to fighting global poverty.
2. for having developed and applied dynamic models for the analysis of
economic processes.
3. for the work in the theory of financial economics.
4. for studies of climate change.
11. If some investment project has multiple stages, one can often realize it is failing
before the final stage. Yet, sometimes instead of abandoning further investment,
people continue to invest because they don’t want to feel as if they wasted money.
This is called…
1. Survivorship bias
2. Sunk cost fallacy
3. Self-fulfilling prophecy
4. Endowment effect
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12. If two firms compete by choosing quantities (Cournot or Stackelberg models),

which of the following is true?
1. Each of them will want to choose the quantity first (be the leader).
2. Each of them will want to choose the quantity second (be the follower).
3. Both will prefer a situation when the output is chosen simultaneously.
4. All other answers are wrong.
13. Which of the following best describes the concept of a speculative bubble?
1. Asset price strongly exceeds its intrinsic value.
2. Inflation rate exceeds 100% a year.
3. Unemployment rate exceeds 30% .
4. The Central Bank decreases interest rate more than by 50 basis points.
14. Country A's statistical agency has revealed the following data about the country's
economy in 2019:
 GDP = 11000
 Private consumption (C) = 5000
 Investment (I) = 3000
 Import (Im) = 1000
 Taxes collected = 500
What can we infer from this information about government spending (G)?
1. G = 0
2. G = 1000
3. G = 3000
4. Impossible to tell
15. A bond that matures 3 years from now has a face value of 100 and matures 3
years from now. Estimate the interest rate if the current price of this bond is 91.
1. r ~ 1%
2. r ~ 3%
3. r ~ 5%
4. r ~ 10%
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16. In April 2020, the WTI oil futures contract fell below zero. This happened
because…
1. Oil was needed less because the world is switching to 'green' sources of
energy.
2. Futures trading was temporarily prohibited after multiple substantial frauds
were discovered.
3. Demand for oil fell due to the COVID-19 pandemic while supply failed to
decrease because OPEC+ failed to sustain the agreement.
4. Major oil producers ran out of oil to extract.
17. Which of the following distincts the COVID-19 economic crisis from all other
major crises of the last 100 years?
1. A significant part of the economic decline was caused by government policies
intentionally aimed at slowing down the economies.
2. No monetary policies were implemented in response.
3. The crisis started in one country and continued worldwide.
4. The crisis will last longer than a year.
18. The following diagram illustrates the exchange market for euros. Choose the
correct statement.
1. The quantity of euros supplied falls when the dollar depreciates.

2. The rightward shift of the demand curve on this diagram would depreciate the
dollar against the euro.
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3. The leftward shift of the supply curve might be caused by a rise of real interest
rates in the United States.
4. At the price of 1.15 dollars per euro there is an excess demand for dollars.
19. Firm X uses capital and labor to produce its final product. For every unit of a
product, 1 unit of capital and 2 units of labor are needed. If labor and capital both
cost $2 per unit, what is the marginal cost of producing the 18'th unit of a product?
1. $0
2. $2
3. $3
4. $6
20. All prices in the economy have grown by 12% over the last year, Zoe's income
has grown by 6%. Pick the right sentence.
1. Zoe's real income has increased by roughly 9%.
2. Zoe's real income has decreased by roughly 6%.
3. Zoe's real income remains the same.
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Solve no more than 4 questions out of 5. Indicate your choice of questions.

If you provide solutions for all 5 questions, all of them will be commented by the
Jury, but only 4 will add to your score. In this case, if you do not specify which to
grade, the maximum grade of 5 will be excluded.
If not stated otherwise, think of all goods, services and assets as of infinitely ivisible.
Convey your ideas clearly. Don’t skip important logical transitions in your
reasoning.
Good luck!
In case you forgot,

n n 1
 
1  2  3  n 
2
Question 1. “Short questions about coronacrisis” (30 raw points)

In this task, please answer the following questions related to the economic and
econometric aspects of the COVID-19 pandemic.
(a) (10 rp) When fighting an “ordinary” recession, it is sufficient for the
government to pay out transfers to households only. However, in the current recession,
transfers to firms (or tax cuts for them) are also required. Explain why.
(b) (10 rp) In the first weeks of the epidemic in Europe, there was a dramatic
surge in demand for essential goods like toilet paper. Usually, a substantial rise in
demand for a particular product leads to a corresponding increase in the producer’s
stock price. However, the stock prices of major toilet paper producers rose little, if at
all. Explain why.
(c) (10 rp) Measuring even a seemingly “simple” quantity like the number of
COVID-19 deaths is not simple. A substantial number of cases may fail to be counted,
and the deaths may be erroneously attributed to something else. Some people argue
that measuring so-called excess mortality, i.e., the difference between the total number
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of deaths in a certain period of 2020, and the total number of deaths in the same
period of a previous year, may help. Researchers found9 that excess mortality in Italy
in March 2020 relative to March 2019 is roughly twice the reported number of
COVID-19 deaths. Does this imply that the reported number of people who died from
the COVID-19 disease really underestimates the actual number by a factor of 2?
Why?
Question 2. “Optimal lockdown” (30 raw points)

As a pandemic caused by a new virus wreaks havoc in the world, no one is
yet ill in town (but some people may be unknowingly infected and may be able to
spread the virus). The town administration considers introducing a lockdown to
prevent the spread of the virus. How strong should the lockdown be? The stronger the
lockdown is, the slower is the spread of the virus, but at the same time, the stronger
is the damage to the economy.
There are 200 citizens in the town. Let the economic benefits of every citizen
from going outside be 50. The costs of going outside are related to the probability of
falling ill. This probability, in turn, depends on the number of people outside. If there
are people outside not including person , the probability that the person becomes
ill is equal to /200. Importantly, the costs upon falling ill are different for different
people as the costs depend on age, initial health, etc. The costs for the first person are
equal to 1, for the second person – to 2, etc. up to 200. Thus, the expected utility of
person from going outside is given by
Q
Ui  50 – .i
200
The utility from staying home is equal to 0 (one can not get infected at home).
(a) (12 rp) Suppose people decide individually whether to go outside, each of
them maximizes his/her expected utility. We say that people’s decisions form a Nash
equilibrium if no one can benefit by changing her/his decision with others’ decisions
fixed. How many people will go outside in the Nash equilibrium? Call this number
.
9 Ciminelli, G, and S Garcia-Mandicó (2020), “COVID-19 in Italy: an Analysis of Death Registry Data”, working
paper.
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(b) (12 rp) By introducing a lockdown, the town administration can mandate
who can and who can not go outside. The administration knows the individual costs
of falling ill of every citizen and maximizes the sum of people’s expected utilities. How
many people should the administration allow to go outside? Call this number .
(c) (6 rp) Compare and . Provide intuition for why is one greater than the
other. Which fundamental economic problem does this model illustrate?
Question 3. “Central Bank Cryptocurrency” (30 raw points)

Imagine a small country IEOnia, in which the Central Bank has abandoned its
old national currency with a substantial share of cash and introduced a new virtual
sovereign currency based on blockchain. The new system is cashless, and all other
(private) currencies are prohibited. Instead of holding cash, every person and every
firm has a digital wallet operated by the Central Bank. The money in this wallet can
be disposed of freely; the Central Bank may set an interest rate for the money in the
wallet. The commercial banks’ sector in the economy is highly competitive.
In this task, you are asked to discuss the possible features of the IEOnian
economy.
(a) (10 rp) The monetary policy in traditional systems has a fundamental
problem called ’zero lower bound.’ How will this be affected by the introduction of
the new system?
(b) (10 rp) How will the Central Bank digital currency affect interest rate
spreads (lending rate minus deposit rate) of commercial banks?
(c) (10 rp) Provide one more economic consequence of the new system that
you find significant.
Question 4. “A common answer in micro and macro” (30 raw points)

This task consists of two parts. They are indirectly related, and the answers to
them are somewhat similar. If you answer part (a) correctly, it’ll be easier for you to
come up with a correct answer to (b), and vice versa.
(a) (15 rp) It often happens that, under the threat of entry of a competitor, an
incumbent monopolist lowers the price even before the entry actually occurs. But this
monopolist’s behaviour is, at first glance, irrational as the price before entry has no
effect on the prices and quantities after entry and thus the pre-entry price cannot affect
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the entrant’s decision to enter and eventually deter entry. Lowering the pre-entry price
relative to the optimal price only causes the incumbent to lose the pre-entry profits.
Propose a simple verbal model in which such monopolist’s behaviour is nevertheless
rational.
(b) (15 rp) Different individuals and firms have different inflation expectations.
Research shows that when the expectations differ little, contractionary monetary policy
(raising the interest rate by a central bank) leads to a decrease in inflation. However,
when the inflation expectations differ a lot, raising the interest rate can paradoxically
lead to an increase in inflation. Explain this phenomenon.
Question 5. “Why is it so expensive to live in London?” (30 raw points)

The richer the country, the higher the cost of living. Prices that you see in
supermarkets and cafes of London generally are higher (in nominal terms) than those
in Baku or Gaborone.
(a) (10 rp) For different goods and services, this effect is different. Provide
examples of goods or services which typically cost almost the same across the world.
Provide examples with high price differences. Explain.
(b) (10 rp) Provide a verbal model to explain this phenomenon: why in more
developed countries (with greater labor productivity), certain goods are likely to be
more expensive than in developing countries.
(c) (10 rp) What approach do economists use to account for these differences
and compare gross domestic products between countries? If we calculate GDPs per
capita utilizing this approach, will we observe more or less between-country
inequality?
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Tất cả 20 câu hỏi trắc nghiệm sẽ được tính điểm (với 1 câu trả lời đúng được 4 điểm,
trả lời sai -1 điểm, không trả lời 0 điểm). Chọn một câu trả lời trong mỗi câu hỏi dưới
đây.
Câu 1. Giới hạn khả năng sản xuất của quốc gia A được cho bởi phương trình X2
+ Y2 = 200. Giới hạn khả năng sản xuất của quốc gia B được cho bởi phương trình
X + Y = 100. Chọn phát biểu đúng.
1. Với bất kỳ X <100 nào giống nhau cho cả hai nước, nước A có thể sản
xuất ít hàng hóa Y hơn nước B.
2. Nếu các nước muốn sản xuất 60 đơn vị X cùng nhau, thì số lượng Y tối đa
có thể mà họ có thể sản xuất cùng nhau bằng xấp xỉ 54.
3. Chi phí cơ hội của việc sản xuất thêm một đơn vị X là bằng nhau giữa các
quốc gia tại tất cả các điểm trên đường giới hạn sản xuất của các quốc gia đó.
4. Nếu các quốc gia kết hợp khả năng sản xuất chung của họ, đường giới
hạn khả năng sản xuất của họ sẽ là X2 + X + Y2 + Y = 300.
Câu 2. Chọn câu phát biểu đúng về độc quyền.

1. Một công ty độc quyền tính giá cao nhất có thể trên thị trường.
2. Đối với công ty độc quyền không phân biệt đối xử, giá cả tương đương với
doanh thu cận biên.
3. Không giống như một công ty cạnh tranh hoàn hảo, mục tiêu của một công
ty độc quyền là tối đa hóa lợi nhuận bình quân.
4. Một công ty độc quyền sẽ được lợi từ khả năng bán các đơn vị bổ sung với
giá thấp hơn các đơn vị đầu tiên.
Câu 3. Chọn câu nói đúng về hàng hóa công cộng.

1. Hàng hóa công cộng được cung cấp một cách hiệu quả bởi thị trường.
2. Một hàng hóa công cộng là một loại hình độc quyền tự nhiên.
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3. Một chiếc khẩu trang miễn phí mà bạn nhận được từ chính phủ là một ví
dụ về hàng hóa công cộng.
4. Chính sách quốc phòng là một ví dụ về một loại hàng hóa công cộng.
Câu 4. Chọn câu phát biểu đúng về một thị trường cạnh tranh hoàn hảo.
1. Các kết quả của thị trường là công bằng, nghĩa là, ở trạng thái cân bằng,
mọi người đều nhận được những gì họ xứng đáng.
2. Sự phân phối tổng thặng dư giữa người tiêu dùng và người sản xuất phụ
thuộc vào hệ số co giãn tương đối của cầu và cung.
3. Trạng thái cân bằng thị trường là trạng thái đạt hiệu quả Pareto khi có các
ngoại ứng.
4. Nếu thị trường được độc quyền, số lượng sản xuất sẽ tăng lên.
Câu 5. Kết quả định lý Coase KHÔNG áp dụng nếu…

1. có một ngoại ứng đáng kể giữa hai bên.
2. hệ thống tòa án thực thi một cách mạnh mẽ tất cả các hợp đồng.
3. chi phí giao dịch làm cho việc đàm phán trở nên khó khăn.
4. cả hai bên đều hiểu rõ về ngoại ứng.
Câu 6. Thị trường lao động cho nghề thợ sửa ống nước của thị trấn X là cạnh tranh
hoàn hảo, cung là một hàm tuyến tính đi qua điểm gốc. Mức lương cân bằng là 10
đô la một giờ. Sau khi đưa ra mức lương tối thiểu 12 đô la một giờ, lượng cung lao
động tăng thêm 10 công nhân, lượng cầu giảm 12 công nhân. Tìm tỷ lệ thất nghiệp
(chọn ước tính gần nhất).
1. 0%
2. 17%
3. 37%
4. 46%
Câu 7. Nhu cầu cho hàng hóa X trong một thị trường độc quyền được cho bởi công
thức Q=100-P, hàm chi phí là TC=Q2+5. Sản lượng của nhà sản xuất độc quyền sẽ
thay đổi như thế nào nếu chính phủ áp dụng giá trần sản phẩm là 50?
1. Sẽ tăng thêm 25.
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2. Sẽ giảm đi 25.
3. Sẽ vẫn như cũ.
4. Sẽ tăng thêm 50.
Câu 8. Có bao nhiêu điểm cân bằng Nash trong trò chơi này?
1. 0
2. 1
3. 2
4. 4
Câu 9. Chính sách nào sau đây có nhiều khả năng sẽ làm tăng hệ số Gini? (Chỉ xem
xét các tác động trước mắt)
1. Một khoản thuế một lần là 100 đô la cho mỗi công dân.
2. Trợ cấp cố định 10 đô la cho mỗi công dân.
3. Bỏ thuế thu nhập lũy thoái.
4. Không có tùy chọn nào ở trên đúng.
Câu 10. Giải thưởng Tưởng niệm Nobel về Khoa học Kinh tế năm 2019 đã được
trao…
1. cho cách tiếp cận thử nghiệm để chống lại đói nghèo toàn cầu.
2. cho nghiên cứu phát triển và áp dụng các mô hình động để phân tích các
quá trình kinh tế.
3. cho công trình về lý thuyết kinh tế tài chính.
4. cho các nghiên cứu về biến đổi khí hậu.
Câu 11. Nếu một số dự án đầu tư có nhiều giai đoạn, người ta thường có thể nhận
ra nó đang thất bại trước giai đoạn cuối cùng. Tuy nhiên, đôi khi thay vì ngừng đầu
tư thêm, mọi người lại tiếp tục đầu tư vì họ không muốn cảm thấy như thể họ đã lãng
phí tiền. Đây được gọi là…
1. Thiên vị sống sót hoặc thiên vị sinh tồn (Survivorship bias)
2. Ngụy biện chi phí chìm (Sunk cost fallacy)
3. Lời tiên tri tự ứng nghiệm (Self-Fulfilling Prophecy)
4. Hiệu ứng sở hữu (endowment effect)
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Câu 12. Nếu hai công ty cạnh tranh bằng cách thông qua số lượng (mô hình Cournot
hoặc Stackelberg), điều nào sau đây là đúng?
1. Mỗi công ty trong số đó sẽ muốn ưu tiên số lượng đầu tiên (là người dẫn
đầu).
2. Mỗi công ty trong số đó sẽ muốn chọn số lượng ở vị trí thứ hai (là người
đi theo).
3. Cả hai sẽ thích hơn tình huống khi đầu ra được chọn đồng thời.
4. Tất cả các câu trả lời khác đều sai.
Câu 13. Điều nào sau đây mô tả đúng nhất khái niệm bong bóng đầu cơ?
1. Giá tài sản vượt quá giá trị nội tại của nó một cách mạnh mẽ.
2. Tỷ lệ lạm phát vượt quá 100% một năm.
3. Tỷ lệ thất nghiệp vượt quá 30%.
4. Ngân hàng Trung ương giảm lãi suất hơn 50 điểm cơ bản.
Câu 14. Cơ quan thống kê của quốc gia A đã tiết lộ dữ liệu sau đây về nền kinh tế
của quốc gia này trong năm 2019:
 GDP = 11000
 Tiêu dùng cá nhân (C) = 5000
 Đầu tư (I) = 3000
 Nhập khẩu (Im) = 1000
 Số thuế đã thu = 500
Chúng ta có thể suy ra điều gì từ thông tin nêu trên về chi tiêu của chính phủ (G)?
1. G = 0
2. G = 1000
3. G = 3000
4. Không thể tính được
Câu 15. Một trái phiếu đáo hạn 3 năm kể từ bây giờ có mệnh giá 100. Ước tính lãi
suất nếu giá hiện tại của trái phiếu này là 91.
1. r ~ 1%
2. r ~ 3%
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3. r ~ 5%
4. r ~ 10%
Câu 16. Vào tháng 4 năm 2020, hợp đồng tương lai dầu WTI giảm xuống dưới
mức không. Điều này xảy ra bởi vì…
1. Dầu ít cần thiết hơn vì thế giới đang chuyển sang các nguồn năng lượng
'xanh'.
2. Giao dịch tương lai tạm thời bị cấm sau khi phát hiện nhiều gian lận
đáng kể.
3. Nhu cầu dầu giảm do đại dịch COVID-19 trong khi nguồn cung không
giảm do OPEC + không duy trì được thỏa thuận.
4. Các nhà sản xuất dầu lớn đã hết dầu để chiết xuất.
Câu 17. Điều nào sau đây phân biệt cuộc khủng hoảng kinh tế COVID-19 với tất
cả các cuộc khủng hoảng lớn khác trong 100 năm qua?
1. Một phần đáng kể của sự suy giảm kinh tế là do các chính sách có chủ ý
của chính phủ nhằm làm chậm lại nền kinh tế.
2. Không có chính sách tiền tệ nào được thực hiện để đáp ứng.
3. Cuộc khủng hoảng bắt đầu ở một quốc gia và tiếp tục trên toàn thế giới.
4. Cuộc khủng hoảng sẽ kéo dài hơn một năm.
Câu 18. Sơ đồ sau đây minh họa thị trường hối đoái đối với đồng euro. Chọn câu
đúng.
1. Lượng cung euro giảm khi đồng đô la giảm giá.
2. Sự dịch chuyển sang phải của đường cầu trên biểu đồ này sẽ làm giảm giá
đồng đô la so với đồng euro.
3. Sự dịch chuyển sang trái của đường cung có thể là do sự gia tăng của lãi
suất thực tế ở Hoa Kỳ.
4. Ở mức giá 1,15 đô la cho mỗi euro, có một lượng cầu vượt mức cân bằng
đối với đô la.
Câu 19. Hãng X sử dụng vốn và lao động để sản xuất ra sản phẩm cuối cùng của
mình. Cứ một đơn vị sản phẩm thì cần 1 đơn vị vốn và 2 đơn vị lao động. Nếu lao
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động và vốn đều có giá 2 đô la trên một đơn vị, thì chi phí cận biên của việc sản
xuất đơn vị sản phẩm thứ 18 là bao nhiêu?
1. $ 0
2. $ 2
3. $ 3
4. $ 6
Câu 20. Giá cả trong nền kinh tế đều tăng 12% so với năm ngoái, thu nhập của
Zoe tăng 6%. Chọn câu đúng.
1. Thu nhập thực tế của Zoe đã tăng khoảng 9%.
2. Thu nhập thực tế của Zoe đã giảm khoảng 6%.
3. Thu nhập thực tế của Zoe không đổi.
4. Thu nhập thực tế của Zoe đã tăng khoảng 6%.
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Giải quyết không quá 4 câu hỏi trong số 5 câu. Cho biết lựa chọn câu hỏi
của bạn.
Nếu bạn đưa ra lời giải cho cả 5 câu hỏi, tất cả các câu hỏi đó sẽ được Ban
giám khảo nhận xét, nhưng chỉ 4 câu sẽ được tính điểm. Trong trường hợp này, nếu
bạn không chỉ định các câu hỏi đã lựa chọn để tính điểm thì câu hỏi có điểm cao
nhất trong số 5 câu sẽ bị loại trừ.
Mỗi câu hỏi mở có giá trị 30 điểm.
Nếu không có quy định khác, mặc định rằng tất cả hàng hóa, dịch vụ và tài
sản là có thể chia được vô hạn.
Số công ty và số người chỉ có thể là số nguyên.
Truyền đạt ý tưởng của bạn một cách rõ ràng. Đừng bỏ qua các chuyển đổi
logic quan trọng trong lập luận của bạn. Chúc may mắn!
Nhắc thí sinh,

n n  1
 
1  2  3  n 
2
Câu hỏi 1. “Câu hỏi ngắn về hiện tượng khủng hoảng do virus corona -
coronacrisis” (30 điểm)
Trong nhiệm vụ này, vui lòng trả lời các câu hỏi sau liên quan đến các khía
cạnh kinh tế và kinh tế lượng của đại dịch COVID-19.
(a) (10 điểm ) Khi chống lại một cuộc suy thoái “bình thường”, chính phủ chỉ
cần chi trả các khoản trợ cấp cho các hộ gia đình là đủ. Tuy nhiên, trong bối cảnh
suy thoái kinh tế như hiện nay, việc trợ cấp cho các công ty (hoặc cắt giảm thuế cho
họ) cũng cần được thực hiện đồng thời. Giải thích vì sao.
(b) (10 điểm) Trong những tuần đầu tiên của dịch bệnh ở Châu Âu, nhu cầu
đối với các mặt hàng thiết yếu như giấy vệ sinh đã tăng mạnh. Thông thường, nhu
cầu về một sản phẩm đặc biệt tăng lên đáng kể dẫn đến giá cổ phiếu của nhà sản
xuất tăng tương ứng. Tuy nhiên, giá cổ phiếu của các nhà sản xuất giấy vệ sinh lớn
chỉ tăng rất ít. Giải thích vì sao.
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(c) (10 điểm) Ngay cả việc đo lường một đại lượng có vẻ “đơn giản” như số
người chết vì COVID-19 cũng không hề đơn giản. Một số lượng đáng kể các trường
hợp có thể không được thống kê, và có thể có các trường hợp tử vong do một nguyên
nhân khác có thể bị thống kê nhầm. Một số người cho rằng việc đo lường số lượng
tử vong vượt mức, tức là sự khác biệt giữa tổng số người chết trong một thời kỳ nhất
định của năm 2020 và tổng số người chết trong cùng kỳ năm trước đó, có thể hữu
ích. Các nhà nghiên cứu phát hiện ra rằng10 tỷ lệ tử vong vượt mức ở Ý vào tháng 3
năm 2020 so với tháng 3 năm 2019 bằng gần gấp đôi số ca tử vong do COVID-19
được báo cáo. Điều này có ngụ ý rằng số người chết vì bệnh COVID-19 được báo
cáo thực sự bị ước tính thấp hơn con số thực tế theo hệ số 2 không? Tại sao?
Câu hỏi 2. “Lệnh đóng cửa tối ưu” (30 điểm)

Khi một đại dịch do một loại vi rút mới gây ra đang tàn phá thế giới, ngược
lại không ai bị ốm trong thị trấn (nhưng một số người có thể vô tình bị nhiễm mà
không bị phát hiện và có thể lây lan vi rút). Chính quyền thị trấn xem xét ban bố lệnh
đóng cửa để ngăn chặn sự lây lan của vi-rút. Việc đóng cửa kinh tế nên được thực
hiện ở mức độ nào? Việc đóng cửa càng mạnh thì virus lây lan càng chậm, nhưng
đồng thời cũng gây thiệt hại càng lớn cho nền kinh tế.
Có 200 công dân trong thị trấn. Giả định lợi ích kinh tế của mỗi công dân
nếu đi ra ngoài làm việc là 50. Chi phí khi đi ra ngoài có liên quan đến khả năng
xác suất bị ốm. Khả năng này, ngược lại, lại phụ thuộc vào số lượng người lựa chọn
không ở nhà và đi ra ngoài. Nếu có người bên ngoài không bao gồm cá nhân
thì xác suất cá nhân bị bệnh bằng / 200. Điều quan trọng là chi phí khi ốm đau
là khác nhau ở những người khác nhau vì chi phí này phụ thuộc vào tuổi tác, tình
hình sức khỏe ban đầu, v.v. Chi phí cho người đầu tiên bằng 1, cho người thứ hai -
bằng 2, v.v. cứ thế đến 200. Như vậy , hiệu ích kỳ vọng của người trong việc đi ra
ngoài được tính toán bởi công thức
Q
Ui  50 – i
200
Hiệu ích trong việc ở nhà bằng 0 (một người không thể bị nhiễm bệnh nếu ở nhà).
paper.
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(a) (12 điểm) Giả sử mỗi cá nhân tự quyết định xem có nên đi ra ngoài hay
không, mỗi người sẽ đều tối ưu hóa hiệu ích mong đợi của mình. Chúng ta nói rằng
quyết định của mọi người hình thành nên trạng thái cân bằng Nash nếu không ai có
thể hưởng lợi bằng cách thay đổi quyết định của cô ấy / anh ấy bằng quyết định
của người khác đã được ấn định. Có bao nhiêu người sẽ đi ra ngoài trong trạng thái
cân bằng Nash? Gọi giá trị này là N.
(b) (12 điểm) Bằng cách ban bố tình trạng đóng cửa, chính quyền thị trấn có
thể cho phép đối tượng nào có thể và không thể đi ra ngoài. Chính quyền biết các
chi phí cá nhân khi bị ốm của mỗi người dân và tối đa hóa tổng các hiệu ích mong
đợi của mọi người. Chính quyền nên cho phép bao nhiêu người ra ngoài? Gọi giá trị
này là K.
(c) (6 điểm) So sánh và K. Cung cấp lập luận giải thích lý do tại sao một
giá trị lớn hơn giá trị kia. Vấn đề kinh tế cơ bản nào mà mô hình này minh họa?
Câu hỏi 3. “Tiền mã hóa (Tiền ảo) của Ngân hàng Trung ương” (30 điểm)
Hãy tưởng tượng một quốc gia nhỏ IEOnia, tại đó Ngân hàng Trung ương đã
từ bỏ đồng tiền quốc gia cũ của mình với một phần đáng kể tiền mặt và giới thiệu
một loại tiền ảo có giá trị tối cao mới dựa trên blockchain. Hệ thống mới không sử
dụng tiền mặt và tất cả các loại tiền tệ (tư nhân) khác bị cấm. Thay vì giữ tiền mặt,
mọi người và mọi công ty đều có một ví điện tử do Ngân hàng Trung ương điều hành.
Tiền trong ví này có thể được tùy ý sử dụng một cách tự do. Khu vực ngân hàng
thương mại trong nền kinh tế có tính cạnh tranh cao.
Trong nhiệm vụ này, bạn được yêu cầu thảo luận về các đặc điểm có thể có
của nền kinh tế IEOnian.
(a) (10 điểm) Chính sách tiền tệ trong các hệ thống truyền thống có một vấn
đề cơ bản gọi là 'giới hạn dưới 0' (giới hạn dưới danh nghĩa). Điều này sẽ bị ảnh
hưởng như thế nào khi ra đời hệ thống mới?
(b) (10 điểm) Đồng tiền ảo của Ngân hàng Trung ương sẽ ảnh hưởng như thế
nào đến chênh lệch lãi suất (lãi suất cho vay trừ lãi suất huy động) của các ngân
hàng thương mại?
(c) (10 điểm) Cung cấp thêm một hệ quả kinh tế của hệ thống mới mà bạn thấy là
quan trọng.
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Câu hỏi 4. “Một câu trả lời chung cho kinh tế vi mô và vĩ mô” (30 điểm)
Nhiệm vụ này bao gồm hai phần. Chúng không liên quan trực tiếp và câu trả
lời cho chúng có khía cạnh giống nhau. Nếu bạn trả lời đúng phần (a), bạn sẽ dễ
dàng đưa ra câu trả lời đúng cho (b) và ngược lại.
(a) (15 điểm) Thông thường, dưới sự đe dọa gia nhập thị trường của một đối
thủ cạnh tranh, một nhà độc quyền đang hoạt động sẽ hạ giá ngay cả trước khi sự
gia nhập thị trường thực sự xảy ra. Nhưng hành vi của nhà độc quyền này thoạt nhìn
là phi lý vì giá trước việc gia nhập thị trường không ảnh hưởng đến giá và số lượng
sau khi sự gia nhập mới diễn ra và do đó giá trước gia nhập không thể ảnh hưởng
đến quyết định gia nhập và vì vậy cuối cùng không thể ngăn cản việc gia nhập. Việc
hạ giá trước khi gia nhập xuống thấp hơn so với giá tối ưu chỉ khiến nhà độc quyền
mất lợi nhuận thu được trước khi có sự gia nhập mới. Đề xuất một mô hình đơn giản
bằng lời nói, trong đó hành vi nêu trên của nhà độc quyền được lý giải là hợp lý.
(b) (15 điểm) Các cá nhân và công ty khác nhau có kỳ vọng lạm phát khác
nhau. Nghiên cứu cho thấy rằng khi các kỳ vọng chênh lệch ít, chính sách tiền tệ điều
chỉnh (tăng lãi suất của ngân hàng trung ương) dẫn đến giảm lạm phát. Tuy nhiên,
khi kỳ vọng lạm phát chênh lệch nhau nhiều, việc tăng lãi suất có thể dẫn đến gia
tăng lạm phát một cách bất hợp lý. Giải thích hiện tượng này.
Câu hỏi 5. "Tại sao sống ở London lại đắt như vậy?" (30 điểm)
Quốc gia càng giàu, chi phí sinh hoạt càng cao. Giá mà bạn thấy trong các
siêu thị và quán cà phê ở London thường cao hơn (trên danh nghĩa) so với giá ở Baku
hoặc Gaborone.
(a) (10 điểm) Đối với các hàng hóa và dịch vụ khác nhau, tác động này là
khác nhau. Cung cấp các ví dụ về hàng hóa hoặc dịch vụ thường có giá gần như
giống nhau trên toàn thế giới. Cung cấp các ví dụ có chênh lệch giá cao. Giải thích.
(b) (10 điểm) Đưa ra một mô hình bằng lời để giải thích hiện tượng này: tại
sao ở các nước phát triển hơn (với năng suất lao động lớn hơn), một số hàng hoá
nhất định có thể đắt hơn ở các nước đang phát triển.
(c) (10 điểm) Các nhà kinh tế sử dụng cách tiếp cận nào để giải thích những
khác biệt này và so sánh tổng sản phẩm quốc nội giữa các quốc gia? Nếu chúng ta
tính toán GDP bình quân đầu người bằng cách sử dụng phương pháp này, liệu chúng
ta có quan sát được ít nhiều bất bình đẳng giữa các quốc gia?
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Phần thi Trắc nghiệm – Multiple Choice Test
each question.
1. Country A's production possibility frontier is given by the equation X2 + Y2 = 200.

Country B's production possibility frontier is given by the equation X + Y = 100.
1. For any given X < 100 same for both countries, country A can
produce less of good Y than country B.
2. If the countries want to produce 60 units of X together, the maximum possible
amount of Y that they can produce together equals approximately 54.
3. The opportunity cost of producing an additional unit of X is equal between
the countries at all points of their PPFs.
4. If the countries join their production possibilities, their PPF will be given by
X2 + X + Y2 + Y = 300.
2. Choose the correct statement about monopoly.

1. A monopoly charges the highest price possible on the market.
2. For a non-discriminating monopoly, price equals marginal revenue.
3. Unlike a perfectly competitive firm, the goal of a monopoly is to maximise
average profit.
4. A monopoly would benefit from the ability to sell additional
units at a price lower than the first units.
3. Choose the correct statement about public goods.

1. Public goods are efficiently provided by markets.
2. A public good is a type of a natural monopoly.
3. A free face mask that you receive from the government is an example of a
public good.
4. National defence is an example of a public good.
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4. Choose the correct statement about a perfectly competitive market.

1. Market outcomes are fair, that is, in equilibrium, everyone gets what they
deserve.
2. The distribution of the total surplus between consumers and
producers depends on the relative elasticities of demand and supply.
3. Market equilibrium is Pareto-efficient in the presence of externalities.
4. If the market is monopolized, the quantity produced will rise.
5. The Coase theorem result does NOT apply if…

1. there is a significant externality between two parties.
2. the court system vigorously enforces all contracts.
3. transaction costs make negotiating difficult.
4. both parties understand the externality fully.
6. The plumber labor market of the town X is perfectly competitive, supply is a linear
function that passes through the origin. The equilibrium wage is 10$ per hour. After
the minimum wage of 12$ per hour was introduced, the quantity supplied of labor
increased by 10 workers, the quantity demanded fell by 12 workers. Find the
unemployment rate (pick the nearest estimate).
1. 0%
2. 17%
3. 37%
4. 46%
7. The demand for good X on a monopoly market is given by Q=100-P, the cost
function is TC=Q2+5. How will the monopolist’s output change if the government
introduced the price ceiling at 50?
2. It will decrease by 25.
3. It will remain the same.
8. How many Nash Equilibria are in this game?
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1. 0
2. 1
3. 2
4. 4
9. Which of the following policies will most likely increase the Gini coefficient?
(Consider only the immediate effects)
1. A lump-sum tax of 100 dollars for every citizen.
2. Fixed subsidy of 10 dollars for every citizen.
3. Removing the regressive income tax.
4. Neither of the options above.
10. The Nobel Memorial Prize in Economic Sciences in 2019 was awarded…
1. for the experimental approach to fighting global poverty.
2. for having developed and applied dynamic models for the analysis of
economic processes.
3. for the work in the theory of financial economics.
4. for studies of climate change.
11. If some investment project has multiple stages, one can often realize it is failing
before the final stage. Yet, sometimes instead of abandoning further investment,
people continue to invest because they don’t want to feel as if they wasted money.
This is called…
1. Survivorship bias
2. Sunk cost fallacy
3. Self-fulfilling prophecy
4. Endowment effect
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12. If two firms compete by choosing quantities (Cournot or Stackelberg models),

which of the following is true?
1. Each of them will want to choose the quantity first (be the leader).
2. Each of them will want to choose the quantity second (be the follower).
3. Both will prefer a situation when the output is chosen simultaneously.
4. All other answers are wrong.
13. Which of the following best describes the concept of a speculative bubble?
1. Asset price strongly exceeds its intrinsic value.
2. Inflation rate exceeds 100% a year.
3. Unemployment rate exceeds 30% .
4. The Central Bank decreases interest rate more than by 50 basis points.
14. Country A's statistical agency has revealed the following data about the country's
economy in 2019:
 GDP = 11000
 Private consumption (C) = 5000
 Investment (I) = 3000
 Import (Im) = 1000
 Taxes collected = 500
What can we infer from this information about government spending (G)?
1. G = 0
2. G = 1000
3. G = 3000
4. Impossible to tell
15. A bond that matures 3 years from now has a face value of 100 and matures 3
years from now. Estimate the interest rate if the current price of this bond is 91.
1. r ~ 1%
2. r ~ 3%
3. r ~ 5%
4. r ~ 10%
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16. In April 2020, the WTI oil futures contract fell below zero. This happened
because…
1. Oil was needed less because the world is switching to 'green' sources of
energy.
2. Futures trading was temporarily prohibited after multiple substantial frauds
were discovered.
3. Demand for oil fell due to the COVID-19 pandemic while supply
failed to decrease because OPEC+ failed to sustain the agreement.
4. Major oil producers ran out of oil to extract.
17. Which of the following distincts the COVID-19 economic crisis from all other
major crises of the last 100 years?
1. A significant part of the economic decline was caused by
government policies intentionally aimed at slowing down the
economies.
2. No monetary policies were implemented in response.
3. The crisis started in one country and continued worldwide.
4. The crisis will last longer than a year.
18. The following diagram illustrates the exchange market for euros. Choose the
correct statement.
1. The quantity of euros supplied falls when the dollar depreciates.

2. The rightward shift of the demand curve on this diagram would
depreciate the dollar against the euro.
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3. The leftward shift of the supply curve might be caused by a rise of real interest
rates in the United States.
4. At the price of 1.15 dollars per euro there is an excess demand for dollars.
19. Firm X uses capital and labor to produce its final product. For every unit of a
product, 1 unit of capital and 2 units of labor are needed. If labor and capital both
cost $2 per unit, what is the marginal cost of producing the 18'th unit of a product?
1. $0
2. $2
3. $3
4. $6
20. All prices in the economy have grown by 12% over the last year, Zoe's income
has grown by 6%. Pick the right sentence.
2. Zoe's real income has decreased by roughly 6%.
3. Zoe's real income remains the same.
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If you provide solutions for all 5 questions, all of them will be commented by the
If not stated otherwise, think of all goods, services and assets as of infinitely ivisible.
Convey your ideas clearly. Don’t skip important logical transitions in your
reasoning.
Good luck!
In case you forgot,

n n 1
 
1  2  3  n 
2
Question 1. “Short questions about coronacrisis” (30 raw points)

In this task, please answer the following questions related to the economic and
econometric aspects of the COVID-19 pandemic.
(a) (10 rp) When fighting an “ordinary” recession, it is sufficient for the
government to pay out transfers to households only. However, in the current recession,
transfers to firms (or tax cuts for them) are also required. Explain why.
(b) (10 rp) In the first weeks of the epidemic in Europe, there was a dramatic
surge in demand for essential goods like toilet paper. Usually, a substantial rise in
demand for a particular product leads to a corresponding increase in the producer’s
stock price. However, the stock prices of major toilet paper producers rose little, if at
all. Explain why.
(c) (10 rp) Measuring even a seemingly “simple” quantity like the number of
COVID-19 deaths is not simple. A substantial number of cases may fail to be counted,
and the deaths may be erroneously attributed to something else. Some people argue
that measuring so-called excess mortality, i.e., the difference between the total number
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of deaths in a certain period of 2020, and the total number of deaths in the same
period of a previous year, may help. Researchers found11 that excess mortality in Italy
in March 2020 relative to March 2019 is roughly twice the reported number of
COVID-19 deaths. Does this imply that the reported number of people who died from
the COVID-19 disease really underestimates the actual number by a factor of 2?
Why?
Solution
(a) Usually, transfers to households are sufficient to support aggregate
demand as the households spend the transfers on goods and services; this generates
revenue for firms, and the
firms keep employing workers. In an epidemic-based recession, however, households
are restricted in spending transfers, as people are restricted in leaving their apartment
and, for example, can not physically go to a restaurant. It is harder for transfers to
become firms’ revenue. Thus, to prevent bankruptcies and keep employment, direct
transfers to firms (at least those that can not quickly transform their business into an
online one) are needed.
(b) The net present value of the companies’ expected dividends was affected
little by the surge in demand, as people just moved the demand for toilet paper from
the future to the
present. People did not start to use more toilet paper.
(c) It is quite obvious that great excess mortality in 2020 must be somehow
related to the COVID-19 pandemic, but it is far from clear that the COVID-19 disease
causes all the new deaths. For example, because the capacity of health care systems
is limited, COVID-19 patients may have crowded out other patients from hospitals,
and those other patients may have started to die more because of that. Similarly, the
pandemic caused severe stress that may have had a severe negative impact on health
independently of the coronavirus. Thus, one can not attribute all excess mortality
directly to the COVID-19 disease.
This part illustrates the difficulty of measuring causal effects in economics and social
sciences.
paper.
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Marking Scheme For every part:

0 pt – no answer, wrong answer or answer with very little argumentation.
5 pt – partially correct answer that contains some necessary elements to explain the
question, but is missing significant elements.
10 pt – full answer or answer with some minor missing elements.
Question 2. “Optimal lockdown” (30 raw points)

As a pandemic caused by a new virus wreaks havoc in the world, no one is
yet ill in town (but some people may be unknowingly infected and may be able to
spread the virus). The town administration considers introducing a lockdown to
prevent the spread of the virus. How strong should the lockdown be? The stronger the
lockdown is, the slower is the spread of the virus, but at the same time, the stronger
is the damage to the economy.
There are 200 citizens in the town. Let the economic benefits of every citizen
from going outside be 50. The costs of going outside are related to the probability of
falling ill. This probability, in turn, depends on the number of people outside. If there
are people outside not including person , the probability that the person becomes
ill is equal to /200. Importantly, the costs upon falling ill are different for different
people as the costs depend on age, initial health, etc. The costs for the first person are
equal to 1, for the second person – to 2, etc. up to 200. Thus, the expected utility of
person from going outside is given by
Q
Ui  50 – .i
200
The utility from staying home is equal to 0 (one can not get infected at home).
(a) (12 rp) Suppose people decide individually whether to go outside, each of
them maximizes his/her expected utility. We say that people’s decisions form a Nash
equilibrium if no one can benefit by changing her/his decision with others’ decisions
fixed. How many people will go outside in the Nash equilibrium? Call this number
.
(b) (12 rp) By introducing a lockdown, the town administration can mandate
who can and who can not go outside. The administration knows the individual costs
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of falling ill of every citizen and maximizes the sum of people’s expected utilities. How
many people should the administration allow to go outside? Call this number .
(c) (6 rp) Compare and . Provide intuition for why is one greater than the
other. Which fundamental economic problem does this model illustrate?
Solution
(a) We will identify a Nash equilibrium in which all people with relatively high
costs of illness (high index ) stay home, and others go outside. Let be the highest
index of a person who goes outside (then, exactly people go outside). In the
equilibrium, the expected utility from going outside for all people with indexes = 1,
…, must be nonnegative, while for people = + 1, … ,200 this utility must be
nonpositive.
In particular, the expected utility of person from going outside must
nonnegative given that − 1 people beside her go outside and the expected utility
of person + 1 from going outside must be nonpositive given that people go
outside. Thus, two conditions must be satisfied: (1) 50 – [( −1)/200] ≥ 0; (2) 50
– [( +1)−1]/200( + 1) ≤ 0. It is easy to find that the only whole number
satisfying these conditions is = 100.
Finally, because the expected utility from going outside of person 100 is
nonnegative, so it is for all people = 1, … 99, because they have lower costs. Likewise,
because the expected
utility from going outside of person 101 is nonpositive, so it is for all people = 102,
… , 200
because they have higher costs. Thus, we indeed found a Nash equilibrium.
(b) As staying home yields a utility of zero, the sum of everyone’s utilities is
just the sum of utilities of people who go outside. Obviously, given that people go
outside, to maximize the sum, the administration should mandate that these are the
people with lowest costs. Thus, the sum of utilities (welfare) is
( ) = 50 − (1 + 2 + … + )[( – 1)/200= 50 –[ ( + 1)( − 1)]/400.
To maximize this function, consider a marginal increase in the welfare when
is incremented by 1: ( )= ( )− ( − 1). The administration should
increase as long as ( ) is positive, and stop when it becomes negative.
We have
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( ) = 50 –(1/400)(( + 1) ( − 1) − ( )( − 1)( − 2))

= 50 –[ ( − 1)/400]( + 1 − ( − 2))
= 50 – 3[ ( − 1)/400].
Thus, ( ) > 0 when ( −1) < (2/3)10000 ≈ 6666 and ( ) < 0 otherwise.
As 802 = 6400, a good guess for the at which the sign changes is around 80. It is
straightforward to check that 81 ⋅ 82 = 6642 < 6666 while 82 ⋅ 83 = 6806 > 6666.
Thus, the optimal is equal to 82.
The administration should let 82 people go outside.
(c) As 100 > 82, > . This happens because (at least in this model) people
do not take into account the negative externality they inflict on others when going
outside (or the positive externality when they stay home). This model illustrates the
classic problem of the underprovision of a public good (the public good here is the
empty street). Equally correct, one may say that this model represents an instance of
tragedy of commons: a common resource – the street and other common places – is,
in a sense, over-exploited here when there is no regulation.
Remark. Please note that even though > , the difference is not that big.
Thus, the administration’s intervention does not have to be strong: people themselves
are already rational enough so that half of the town’s population stays home without
any mandatory lockdown. Roughly speaking, the strength of the mandatory lockdown
( − ) should correspond only to the strength of externalities people produce but not
to the total costs of the disease.
Marking scheme.
(a)
• 2 points for the idea that people with lowest costs will go outside
• 8 points for writing the correct conditions for N
• 2 points for solving the conditions taking into account that N is an integer
(thus, if the answer is off by 1, these points are not awarded).
Special cases:
• 4 points if the maxmin solution concept is used instead of Nash equilibrium.
That is, a contestant assumes that a player does not know how other players will act
(e.g., because she cannot assess others’ rationality) and resorts to worst-case analysis.
In a Nash equilibrium, players do know what others are doing!
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(b)
• 2 points for the idea that people with lowest costs will should be allowed to
go outside
• 8 points for writing the correct objective function and conditions for
optimization (plotting the graph instead of writing the conditions is OK).
• 2 points for solving the conditions taking into account that N is an integer
(thus, if the answer is off by 1, these points are not awarded).
Special cases:
• If a correct solution to (a) is presented as a solution to (b), only the first two
points are awarded.
(c)
• 4 points for the idea of externalities
• 2 points for mentioning the under-provision of a public good or tragedy of
commons Special cases:
• If externalities are already mentioned, mentioning Prisoner’s dilemma does
not yield points, as this game is not technically a Prisoner’s dilemma – the players do
not have dominant strategies
• If externalities are not mentioned, mentioning Prisoner’s dilemma yields 2
points as Prisoner’s dilemma does suggest the idea of externalities
• If a contestant mentions negative externalities from going outside but (s)he
actually gets < , (s)he is penalized by 2 points as this shows that the contestant
did not detect a contradiction in her/his results, and thus her/his understanding is
likely incomplete
• If no correct intuition is written, but the comparison is right ( > ), 1 point
is awarded
Finally, in any part 1 or 2 encouragement points may be awarded if there is
some plausible reasoning possibly hinting in the right direction but insufficient to get
“main” points.
Question 3. “Central Bank Cryptocurrency” (30 raw points)

Imagine a small country IEOnia, in which the Central Bank has abandoned its
old national currency with a substantial share of cash and introduced a new virtual
sovereign currency based on blockchain. The new system is cashless, and all other
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(private) currencies are prohibited. Instead of holding cash, every person and every
firm has a digital wallet operated by the Central Bank. The money in this wallet can
be disposed of freely; the Central Bank may set an interest rate for the money in the
wallet. The commercial banks’ sector in the economy is highly competitive.
In this task, you are asked to discuss the possible features of the IEOnian
economy.
(a) (10 rp) The monetary policy in traditional systems has a fundamental
problem called
’zero lower bound.’ How will this be affected by the introduction of the new system?
(b) (10 rp) How will the Central Bank digital currency affect interest rate
spreads (lending rate minus deposit rate) of commercial banks?
(c) (10 rp) Provide one more economic consequence of the new system that
you find significant.
Solution
(a) The zero lower bound problem means that it is difficult to decrease interest
rates (conduct expansionary monetary policy) when the deposit rate is near zero. This
is because people will withdraw money from commercial banks and keep them in
cash. A cashless system removes this problem; banks (including the CB) may
effectively pay the negative interest rate because depositors have no other option of
storing money.
(b) Short answer:
• Either: same deposit rates, more concentration in the lending market – higher
spreads.
• OR: higher deposit rates by commercial banks to attract funds, more
transparency in credit history – lower spreads.
• OR: higher deposit rates by commercial banks to attract funds, funding risk
hence higher lending rates – ambiguous effect on spreads.
Longer answer: Commercial banks and CB will be in competition for the
depositors’ money. While commercial banks could default and endanger deposits
(that is why deposit insurance is necessary to avoid bank runs), CB offers effectively
safe deposits. Banks will face a withdrawal of funding by people and firms because
many will prefer a riskless wallet with CB given that the deposit interest rates are the
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same. Competeing with each other and with the CB, commercial banks will raise the
deposit rates and thus decrease the spreads.
For commercial banks to stay in business, they would need to rely more heavily
on other sources of funding, like issuing bonds. Provided a highly competitive
environment, some banks will leave the market. Note that CB does not lend to firms
or individuals, hence the lending market will be more concentrated. Remaining banks
will charge higher interest from borrowers both because of higher cost of funding and
more market power in lending.
So, there are effects both ways.
(c) Key ideas: decreased tax evasion and money laundering, increased tax
revenues, more opportunities for financial surveillance, potentail issues with
international trade, higher consumer spending because of lower ”pain of paying”, etc.
Marking Scheme
(a) 5pts Zero lower bound – hard to enforce negative nominal interest rates.
5pts Possible to enforce with crypo money because of no outside option.
(b) Full points for some consistent set of arguments about (i) deposit rate, (ii)
lending market rate, and (iii) corresponding spread between them.
Question 4. “A common answer in micro and macro” (30 raw points)

This task consists of two parts. They are indirectly related, and the answers to
them are somewhat similar. If you answer part (a) correctly, it’ll be easier for you to
come up with a correct answer to (b), and vice versa.
(a) (15 rp) It often happens that, under the threat of entry of a competitor, an
incumbent monopolist lowers the price even before the entry actually occurs. But this
monopolist’s behaviour is, at first glance, irrational as the price before entry has no
effect on the prices and quantities after entry and thus the pre-entry price cannot affect
the entrant’s decision to enter and eventually deter entry. Lowering the pre-entry price
relative to the optimal price only causes the incumbent to lose the pre-entry profits.
Propose a simple verbal model in which such monopolist’s behaviour is nevertheless
rational.
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(b) (15 rp) Different individuals and firms have different inflation expectations.
Research shows that when the expectations differ little, contractionary monetary policy
(raising the interest rate by a central bank) leads to a decrease in inflation. However,
when the inflation expectations differ a lot, raising the interest rate can paradoxically
lead to an increase in inflation. Explain this phenomenon.
Solution
(a) Short: signaling by the monopolist its low level of costs. Long: The key is
that the entrant doesn’t have complete information about the monopolist’s costs.
Hence the entrant doesn’t know how painful the price war or quantity competition will
be in case of entry.
(b) Short answer: raising the interest rate by a CB is a signal for the
economic agents that the aggregate demand is high (because the tightening of
monetary policy is only necessary
when the aggregate demand is high). Upon realizing that the demand is high, the
firms raise prices. Long answer: Irrespective of the variance of inflation expectations,
the classic monetary policy transmission mechanism is at work: when the interest rate
grows, investment (and, possibly, consumption) contract (consumption through the
effect of the interest rate on consumer loans). This lowers the aggregate demand and
slows down inflation. However, when the differences in inflation expectations are
large, there is a high level of uncertainty about the economy, and the agents are not
likely to have right information about the aggregate demand. The CB, on the other
hand, is likely to have better information as it sees the full picture and has overall
better data, models, and economists. Thus, in times of high uncertainty, actions of the
CB convey valuable information to the agents. In particular, raising the interest rate
signals that the AD is high. Upon realizing that the demand is high, the firms raise
prices. If this second informational effect is strong enough, it outweighs the classical
transmission mechanism, and inflation increases.
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Bibliographic note: The signaling explanation of the phenomenon in the

first part of the problem (called “limit pricing”) was proposed by Milgrom and Roberts
in 1982.12 The second part is based on the recent work of Falck and coauthors.13
Marking Scheme For both parts:

15 points: both the answer and the reasoning are correct. Model is presented
in clear and
consistent way, and leads to correct conclusions
14 points: the reasoning or the actual answer are correct, but it lacks clarity
or specificity. The answer could be improved with few sentences, or the argument
needs more flashing out of the main idea. Overall, the answer conveys that student
understood the question, but may fall short in persuading and explicitly describing
their argument.
10 points: either the reasoning or the answer is incorrect, but answer raises
few good points that potentially could have led to a correct outcome.
5 points: there’s at least one correct idea in the response that warrants points,
but typically the answer and the model is incorrectly specified, or question is
misunderstood. In some cases, a correct answer is given, to the wrong but related
question
0 Points: both the reasoning and the answer is incorrect or question is
completely misunderstood.
Question 5. “Why is it so expensive to live in London?” (30 raw points)

The richer the country, the higher the cost of living. Prices that you see in
supermarkets and cafes of London generally are higher (in nominal terms) than those
in Baku or Gaborone.
(a) (10 rp) For different goods and services, this effect is different. Provide
examples of goods or services which typically cost almost the same across the world.
Provide examples with high price differences. Explain.
12 Milgrom, P. and J. Roberts. “Limit pricing and entry under incomplete information: An equilibrium analysis”,
Econometrica 1982.
13 Falck, E., M. Hoffmann & P. Huertgen (2019), “Disagreement about inflation expectations and monetary policy
transmission”, Journal of Monetary Economics 2019.
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(b) (10 rp) Provide a verbal model to explain this phenomenon: why in more
developed countries (with greater labor productivity), certain goods are likely to be
more expensive than in developing countries.
(c) (10 rp) What approach do economists use to account for these differences
and compare gross domestic products between countries? If we calculate GDPs per
capita utilizing this approach, will we observe more or less between-country
inequality?
Solution
(a) Goods that are easier to trade across the board are more likely to cost
roughly the same (economists call it the law of one price). Otherwise, exporters and
importers will find profit opportunities and drive the prices closer together. A typical
example is consumer electronics.
On the other hand, non-tradable goods and services must be produced locally
and cannot be easily exported and imported. Food, most services (haircuts, taxi, etc.)
are examples of it.
Relevant economic terms (not graded): law of one price, arbitrage.
(b) Technological advancement increases productivity in tradable sectors (like
producing electronics) more than in non-tradable and labor-intensive (like
hairdressing). The wages of tradable sector workers go up.
Demand side: Tradable sector workers have high wages so their demand is
less elastic for non-tradable services. This increases their prices.
Supply side: Tradable and non-tradable sectors within a country are
connected through the labor market: higher (real) wages in the tradable sector in
advanced countries attract workers. So, the non-tradable sector wages also rise above
the level of developing countries, even though the productivity of hairdressers across
the world is roughly the same. Increased salaries lead to an increase in prices.
Relevant economic terms (not graded): Balassa-Samuelson effect, Baumol’s cost
disease.
(c) This concept is called purchasing power parity (PPP). Similar baskets of
goods and their price difference between countries are used to adjust the nominal
exchange rate and consider relative prices. Since similar baskets are more expensive
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in developed countries (with higher GDP), PPP-adjustment will decrease the difference
of nominal GDPs. Less between-country inequality will be observed.
Marking Scheme
(a) 3 pts for examples of each kind, 4 pts for explanation (tradability). If one
of the examples is missing but the other one is present and correctly explained through
tradability, no penalty for lack of explanation.
(b) Correct demand or supply side explanation gets full grade.
Demand-side explanation:
• higher productivity leads to higher wages in some sectors – 5 pts;
• higher wages lead to greater demand (and less elastic) for goods and
services – 2 pts;
• conclusion: this increases the prices that can be increased - namely, of non-
tradables - 3 pts.
Supply-side explanation:
• higher productivity leads to higher wages in some sectors – 5 pts;
• due to the market dynamics, the costs of all domestic producers go up – 3 pts;
• conclusion: this increases the prices that can be increased – namely, of non-
tradables - 2 pts.
Explanation which relies only on higher demand in developed countries per
se (for example, because of the immigrants who want to live there) earns 0 points
because the supply must also increase in this case, so the effect on prices is unclear.
(c) 5 pts for PPP identification, 5 pts for correct answer regarding inequality
with explanation.
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VEO
1) Investor J is convinced that there is a price bubble on the market and that it will
burst in the future after the price rises a little more. If he acts in accordance with
a) J will buy this asset and wait until the price falls to sell it
b) J will short sell this asset and wait until the price drops to buy it, gaining risk-
free profit
c) J will short sell this asset and wait until the price drops to buy it, taking into
account the importance of timing
d) J will remain inactive since bubbles are risky and could lead to significant losses,
unlike other assets
2) Think about the Lorenz curve constructed by lining up all the individuals in the
world from lowest to highest income, irrespective of the country people live in. What
is the closest estimate of the Gini coefficient of this curve?
a) 0.1 b) 0.2 c) 0.3 d) 0.7
3) Which of the following scholars is most famous for using field experiments in their
research?
a) Eric Maskin b) Esther Duflo
c) Eugene Fama d) Gregory Mankiw
4) The market for widgets in country A is perfectly competitive; D = 100 - 20P is the
demand function, the supply function is given by S = 20P - 20. The world price for
widgets is 2. Choose the correct statement:
a) The autarky price of widgets is 4
b) Under free trade, country A is an exporter of widgets
c) If the government introduces an import tariff t = 2, there is no trade
d) If the government introduces an import tariff t = 2, domestic consumers are better
off compared to free trade
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5) When investors buy a share to cover their short positions, which results in a rapid
increase in this share price, this is called…
a) Short squeeze b) Game stop
c) Long squeeze d) Fundamental shock
6) Economist N calculates income inequality based on the Gini coefficient and the
incomes of all individuals in the society. Economist M calculates income inequality
based on the Gini coefficient and the incomes of all families in the society (simply
adds up all family members’ incomes before constructing the Lorenz curve). Which of
the following is true?
a) N’s Gini coefficient is likely to be smaller than M’s
b) M’s Gini coefficient is likely to be smaller than N’s
c) The two Gini coefficients will be the same
d) None of the other statements is true
7) Which of the following statements best describes the Efficient Market Hypothesis?
a) Share prices on the market reflect all available information
b) Stock markets produce no externalities
c) Government interventions can make markets more efficient
d) Natural monopolies should not be regulated
8) Which of the following letters is not used to describe the type of recession (and
recovery)?
a) U b) V c) L d) T
9) In this diagram, you can see the contribution of different components of the
aggregate demand to the U.S. GDP change during the global financial crisis (in
annual percentage points). The bars represent government spending, net exports,
private consumption, residential and non-residential investment.
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VEO
Source: ‘The Great Depression, golden age, and global financial crisis’.
Unit 17 in The CORE Team, The Economy (2017). Available at: https://www.core-
econ.org.
Which of the following is not true?
a) green bars are private consumption
b) red bars are non-residential investment
c) black bars are government spending
d) blue bars are net export
10) Choose the correct statement for a perfectly competitive market with supply and
demand curves looking as usual:
a) If the government sets the price floor above the equilibrium price, consumers are
better off
b) If the government sets the price floor above the equilibrium price, producers
(sellers) are better off
c) If a government introduces a per-unit tax, the tax revenue is smaller than the
combined loss of consumers and producers (sellers)
d) If a government introduces a per-unit subsidy, the government expenditure is
smaller than the combined gain of consumers and producers (sellers)
11) NiceCream, Inc. is a monopolist at the market of ice creams in town N. It enjoys
the monopoly profit with the demand function given by D = 100 – P and constant
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marginal cost MC < 100. Another firm with the same technology is going to enter the
market, in this case, the firms will compete by choosing their outputs simultaneously.
Choose the correct statement:
a) The sum of profits of the two firms will be greater than the NiceCream’s profit
before entry
b) The sum of outputs of the two firms will be greater than the NiceCream’s output
before entry
c) The ice cream price after entry will be higher than before entry
12) Globalization during the late 19th century involved the exchange of agricultural
and manufactured goods between land-abundant/labor-scarce countries and labor-
abundant/land-scarce countries. Based on this information, which of the following
statements is correct?
a) As a result of specialization, France would export agricultural goods and import
manufactured goods
b) In Russia, the workers would be the winners while the land-owners would be the
losers
c) The U.S. would see the ratio of wages to land rents fall
d) German workers would demand tariffs on agricultural imports
13) Choose the correct statement regarding economic growth:

a) Economic growth in all countries of the world has had the same pace in all
countries for the last few decades
b) Compared to the pace of the 20th century, economic growth in the world was
very slow before 1700
c) Economic growth is defined as a long-lasting increase in the country’s nominal
GDP
d) All the differences in the pace of economic growth between countries can be
explained by their geographical location
14) Rational João Pedro spends all his money on two goods, X and Y, and always
knows for sure his optimal bundle. When the prices of both goods are 3, he chooses
the bundle (4, 4). Choose the correct statement (other things being equal):
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a) If his income goes up, his consumption of X must increase

b) If the new prices of goods (X, Y) become (1, 5), it is possible that the bundle (3,
5) becomes the optimal choice
c) If the new prices of goods (X, Y) become (2, 4), it is possible that the bundle (6,
d) If the new prices of goods (X, Y) become (2, 4), it is possible that the bundle (2,
15) Two players are negotiating where to place some object on the Cartesian plane.
They choose the coordinates (x, y) in the following way: Player A sets the coordinate
on the X-axis, Player B sets the coordinate on the Y-axis. Player A wants the object to
be as close as possible to the point (2, 4); Player B wants the object to be as close as
possible to the point (3, 1). Find
the Nash equilibrium location of the object.
a) (2, 1) b) (2.5, 2.5) c) (3, 4) d) (0, 0)
16) Which of the following is true regarding involuntary unemployment?

a) Involuntary unemployment is forbidden by law in most countries
b) If a worker is fired against her will but finds a new job immediately, involuntary
unemployment increases
c) If wages are above the market-clearing (efficiency wages), there is no
involuntary unemployment
d) Setting a minimum wage above the market-clearing wage creates involuntary
unemployment
17) If the Central Bank of country K is trying to speed up the recovery of the country’s
economy using monetary policy, which of the following is correct, other things equal?
a) The currency of country K is likely to appreciate
b) It is likely that country K’s exports will become cheaper for foreigners
c) Country K’s bonds will go down in prices
d) The money supply will shrink
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18) Choose the correct statement about externalities:

a) When a person is vaccinated against COVID-19, it creates a positive externality
in the future
b) If some action is associated with negative externality, it must be forbidden to
achieve economic efficiency
c) Positive externalities increase efficiency, so markets with them should not be
subject to government intervention
d) If externality appears in a monopolized market, the inefficiency is doubled and
strict regulation is called for
19) Which of the following best describes the Lucas Critique?

a) The economy of the Galactic Empire in ‘Star Wars’ is very unrealistic
b) Economists should not use too much math in their papers
c) It is generally not a good idea to use relationships found in historical data for
policy-making
d) Consumers do not maximize utility in real life
20) Which of the following is typically not a role of a central bank?

a) The executor of monetary policy
b) Lender of last resort
c) The sole issuer of legal tender
d) All other options are typical CB’s roles
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If you provide solutions for all 5 questions, all of them will be commented on by the
Good luck!
Question 1. “Dynamic Equilibrium” (30 raw points)

Oil (good A) and Gas (good B) are substitutes in consumption; the demand
and supply functions are given by:
Good Demand Supply

Oil (A) = -2 + = -10 + 2
Gas (B) = 80 - 6 +2 = -5 +
(a) (5 rp) Find equilibrium prices ⋆ and ⋆ if = 210.

(b) (10 rp) Now consider a dynamic version of this model. We consider the
demand for Gas constant for simplicity, but the demand for Oil is volatile. In period
, parameter takes the value of . Suppose that 1 = 210, so in the first period,
the equilibrium from part (a) realizes.
For producers of both natural resources, it takes some time to change
production capacity, so they have to make a production decision one period before
the actual sale occurs. In the first period ( = 1), they expect the demand for Oil to fall
sharply, so the expected 2 equals 80. How many units of Oil and Gas will be
produced for selling in period 2?
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(c) (5 rp) The prediction of demand decline turned out to be wrong, so

2 remained at level 210. Still, the goods are produced, and capacity is exhausted.
What prices of Oil and Gas will clear the market?
(d) (10 rp) Suppose that starting from period 2, firms’ expectations are naïve.
This means that they always expect the next period’s prices to equal the prices in the
current period and make decisions about future production based on this prediction.
At the same time, the actual value of always remains 210. What will happen to
prices and outputs when → ∞?
Question 2. “Effective Lower Bound” (30 raw points)

By the assumption made by many standard textbooks and models, zero is the
lower bound of an interest rate, limiting the central bank’s capacity to stimulate the
economy through monetary policy loosening. This assumption has been disputed
recently, as central banks of several countries have set interest rates at negative levels.
Some economists tried to identify (at least theoretically) the interest rate which
is, indeed, a lower bound for expansionary monetary policy. They have found that
for an interest rate below some (probably negative) level, the further decrease may
surprisingly be contractionary. This task will walk you through their reasoning.
(a) (5 rp) Explain why zero is sometimes considered the lower bound of an
interest rate.
(b) (5 rp) Decreased interest rates lead to capital gains on securities owned
by banks, improving their capital position. Explain this phenomenon.
(c) (10 rp) On the other hand, there is some evidence that when the interest
rates go down because of the central bank’s decision, commercial banks’ net interest
margins narrow, causing profitability decline. Explain why this might be the case.
(d) (10 rp) If the decline of today’s value of future profits outweighs the capital
gains, the bank’s overall capital position deteriorates. Explain how this may lead to
less lending by a bank, making the “stimulus” contractionary.
Question 3. “Pandemic Possibility Frontier” (30 raw points)

Last year, IEO contestants were asked to solve a problem about an optimal
lockdown.
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Unfortunately, in 2021 this topic is no less relevant. So suppose society is

facing a severe viral pandemic and contemplates introducing a lockdown. How strong
should the lockdown be?
The answer to this question apparently depends on the preferences of the
society between the lives/health of people and GDP. Or does it really?
Let ∈ [0, 1] be the level (strength) of a lockdown ( = 0 is no lockdown while
= 1 is complete lockdown) and be some measure of the total amount of virus in
circulation.
The relation between the two is given by = 2(1 - ). Aggregate demand in
the economy is given by the function = 10 - 2 - while aggregate supply is
governed by the equation =2+ - - ⋅ where ⩾ 0 is a parameter; is real
GDP and is price level, as usual. Finally, let be the aggregate health of people;
it depends on the amount of virus in circulation as follows: = 3 - /2.
Define the Pandemic Possibility Frontier (PPF, for short) as the set of all pairs
( , ) that can be achieved by a policy-maker by choosing various levels of lockdown
∈ [0, 1].
(a) (7 rp) Give a reason for why may be positive.
(b) (16 rp) Sketch the PPF and show the coordinates of its extreme points if
= 1 and = 2 (on two different diagrams).
(c) (7 rp) Suppose the preferences of the society over GDP-Health
combinations ( , ) are given by some family of indifference curves. In practice, no
one knows a society’s indifference curves exactly; this generates heated debate about
the optimal level of lockdown. For which values of a policy-maker does not have to
know the society’s indifference curves over ( , ) in order to find the optimal level of
lockdown? (The policy-maker still knows all the data in the task and assumes correctly
that the society values each of and .)
Question 4. “Pay as You Earn” (30 raw points)

Different college graduates earn different salaries, even after graduating from
the same institution. Some are less successful or lucky (and thus have lower salaries);
others don’t pursue maximization of their earnings, leaning towards socially-oriented
not-for-profit jobs. Even if student loans are available, students may abstain from
entering prestigious and expensive colleges, uncertain that they will be able to repay.
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This may create an inefficient allocation when most risk-loving and not most talented
young people get the best education. (And then some of them fail to pay off the loans.)
Consider the following alternative to a traditional student loan which intends
to solve this inefficiency problem. A student enters college tuition-free, and after
graduation, they pay the college a certain percentage of their salary for a fixed
number of years. So, a student never has to pay for their education more than they
earn after receiving it. The income percentage to be paid is calculated based on an
average graduate’s salary, so the program should finance itself.
(a) (20 rp) Despite its apparent advantages, this type of education financing
is uncommon. Skills training programs (such as coding academies and bootcamps)
are more likely to offer it than prominent universities. Explain why the program
designed as described above may fail economically in a large university but is more
likely to be feasible in a bootcamp.
(b) (10 rp) Suggest a tweak to the program conditions, which might help solve
the problem mentioned in (a).
Question 5. “Vaccination Dilemmas” (30 raw points)

The city of Vaccineville has a lot of residents. During the coronavirus
pandemic, the city authorities are not imposing a lockdown but are urging all
residents to get vaccinated. A vaccine is available in the city and can be administered
to any resident who wants to get it.
The likelihood for a person P to contract the coronavirus depends on whether
he or she is vaccinated, as well as what proportion of other residents are vaccinated.
For simplicity, assume that every day all residents meet in random pairs, so the
probability of meeting a vaccinated person equals the proportion of residents that
are vaccinated (assume that the population is very large, so whether one person is
vaccinated does not affect to any significant extent). The risk for person P to contract
the coronavirus in different matches are given by their probability of being infected
that are included in the following table:
...and meets smb. ...and meets smb. non-

Person P…
vaccinated vaccinated
...is vaccinated... 0 0.05
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...is not
0.15 0.4
vaccinated...
All residents consider vaccination a costly procedure. Even though the vaccine
is offered free of charge, the cost may come in the form of the time needed to be spent
visiting a doctor, lack of trust in the effectiveness and safety of the vaccine, side effects,
etc. A person’s utility equals the probability of not being infected when she meets
someone. For those vaccinated, the cost of vaccination that is equal to 0.3 is
subtracted from utility.
(a) (10 rp) Suppose people decide individually whether to get vaccinated;
each of them maximizes their utility. We say that people’s decisions form a Nash
equilibrium if no one can benefit by changing their decision with others’ decisions
fixed. What fraction of Vaccineville residents will get vaccinated in the Nash
equilibrium?
(b) (10 rp) Vaccinetown is just like Vaccineville in all aspects, except that its
authorities force some of its citizens to get vaccinated. In particular, vaccination is
mandatory for doctors and teachers, which together constitute 20% of the town’s
population. All other residents decide individually whether to get vaccinated or not.
What fraction of Vaccinetown residents will get vaccinated in the Nash equilibrium?
(c) (10 rp) Now suppose that cost of vaccination is different across the
population. It is not 0.3 for everyone, but instead, it ranges from zero for some people
to very high for others. The authorities want to shift the equilibrium so that more people
get vaccinated by making vaccination mandatory for some of them. They know what
groups of people have low, medium, and high vaccination costs and can choose for
whom to make vaccination mandatory. Knowing that it is politically infeasible to make
vaccination mandatory to everyone, what is your recommendation regarding this
matter? Explain using the concept of Nash Equilibrium.
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1) Investor J is convinced that there is a price bubble on the market and that it will
burst in the future after the price rises a little more. If he acts in accordance with
a) J will buy this asset and wait until the price falls to sell it
b) J will short sell this asset and wait until the price drops to buy it, gaining risk-
free profit
c) J will short sell this asset and wait until the price drops to buy it,
taking into account the importance of timing
d) J will remain inactive since bubbles are risky and could lead to significant losses,
unlike other assets
2) Think about the Lorenz curve constructed by lining up all the individuals in the
world from lowest to highest income, irrespective of the country people live in. What
is the closest estimate of the Gini coefficient of this curve?
a) 0.1 b) 0.2 c) 0.3 d) 0.7
3) Which of the following scholars is most famous for using field experiments in their
research?
a) Eric Maskin b) Esther Duflo
c) Eugene Fama d) Gregory Mankiw
4) The market for widgets in country A is perfectly competitive; D = 100 - 20P is the
demand function, the supply function is given by S = 20P - 20. The world price for
widgets is 2. Choose the correct statement:
a) The autarky price of widgets is 4
b) Under free trade, country A is an exporter of widgets
c) If the government introduces an import tariff t = 2, there is no trade
d) If the government introduces an import tariff t = 2, domestic consumers are better
off compared to free trade
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VEO
5) When investors buy a share to cover their short positions, which results in a rapid
increase in this share price, this is called…
a) Short squeeze b) Game stop
c) Long squeeze d) Fundamental shock
6) Economist N calculates income inequality based on the Gini coefficient and the
incomes of all individuals in the society. Economist M calculates income inequality
based on the Gini coefficient and the incomes of all families in the society (simply
adds up all family members’ incomes before constructing the Lorenz curve). Which of
the following is true?
a) N’s Gini coefficient is likely to be smaller than M’s
b) M’s Gini coefficient is likely to be smaller than N’s
c) The two Gini coefficients will be the same
7) Which of the following statements best describes the Efficient Market Hypothesis?
a) Share prices on the market reflect all available information
b) Stock markets produce no externalities
c) Government interventions can make markets more efficient
d) Natural monopolies should not be regulated
8) Which of the following letters is not used to describe the type of recession (and
recovery)?
a) U b) V c) L d) T
9) In this diagram, you can see the contribution of different components of the
aggregate demand to the U.S. GDP change during the global financial crisis (in
annual percentage points). The bars represent government spending, net exports,
private consumption, residential and non-residential investment.
Trang 253
Source: ‘The Great Depression, golden age, and global financial crisis’.
Unit 17 in The CORE Team, The Economy (2017). Available at: https://www.core-
econ.org.
Which of the following is not true?
a) green bars are private consumption
b) red bars are non-residential investment
c) black bars are government spending
d) blue bars are net export
10) Choose the correct statement for a perfectly competitive market with supply and
demand curves looking as usual:
a) If the government sets the price floor above the equilibrium price, consumers are
better off
b) If the government sets the price floor above the equilibrium price, producers
(sellers) are better off
c) If a government introduces a per-unit tax, the tax revenue is
smaller than the combined loss of consumers and producers (sellers)
d) If a government introduces a per-unit subsidy, the government expenditure is
smaller than the combined gain of consumers and producers (sellers)
11) NiceCream, Inc. is a monopolist at the market of ice creams in town N. It enjoys
the monopoly profit with the demand function given by D = 100 – P and constant
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VEO
marginal cost MC < 100. Another firm with the same technology is going to enter the
market, in this case, the firms will compete by choosing their outputs simultaneously.
Choose the correct statement:
a) The sum of profits of the two firms will be greater than the NiceCream’s profit
before entry
b) The sum of outputs of the two firms will be greater than the
NiceCream’s output before entry
c) The ice cream price after entry will be higher than before entry
12) Globalization during the late 19th century involved the exchange of agricultural
and manufactured goods between land-abundant/labor-scarce countries and labor-
abundant/land-scarce countries. Based on this information, which of the following
statements is correct?
a) As a result of specialization, France would export agricultural goods and import
manufactured goods
b) In Russia, the workers would be the winners while the land-owners would be the
losers
c) The U.S. would see the ratio of wages to land rents fall
d) German workers would demand tariffs on agricultural imports
13) Choose the correct statement regarding economic growth:

a) Economic growth in all countries of the world has had the same pace in all
countries for the last few decades
b) Compared to the pace of the 20th century, economic growth in the
world was very slow before 1700
c) Economic growth is defined as a long-lasting increase in the country’s nominal
GDP
d) All the differences in the pace of economic growth between countries can be
explained by their geographical location
14) Rational João Pedro spends all his money on two goods, X and Y, and always
knows for sure his optimal bundle. When the prices of both goods are 3, he chooses
the bundle (4, 4). Choose the correct statement (other things being equal):
Trang 255
a) If his income goes up, his consumption of X must increase

b) If the new prices of goods (X, Y) become (1, 5), it is possible that the bundle (3,
c) If the new prices of goods (X, Y) become (2, 4), it is possible that
the bundle (6, 3) becomes the optimal choice
d) If the new prices of goods (X, Y) become (2, 4), it is possible that the bundle (2,
15) Two players are negotiating where to place some object on the Cartesian plane.
They choose the coordinates (x, y) in the following way: Player A sets the coordinate
on the X-axis, Player B sets the coordinate on the Y-axis. Player A wants the object to
be as close as possible to the point (2, 4); Player B wants the object to be as close as
possible to the point (3, 1). Find
the Nash equilibrium location of the object.
a) (2, 1) b) (2.5, 2.5) c) (3, 4) d) (0, 0)
16) Which of the following is true regarding involuntary unemployment?

a) Involuntary unemployment is forbidden by law in most countries
b) If a worker is fired against her will but finds a new job immediately, involuntary
unemployment increases
c) If wages are above the market-clearing (efficiency wages), there is no
d) Setting a minimum wage above the market-clearing wage creates
17) If the Central Bank of country K is trying to speed up the recovery of the country’s
economy using monetary policy, which of the following is correct, other things equal?
a) The currency of country K is likely to appreciate
b) It is likely that country K’s exports will become cheaper for
foreigners
c) Country K’s bonds will go down in prices
d) The money supply will shrink
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VEO
18) Choose the correct statement about externalities:

a) When a person is vaccinated against COVID-19, it creates a
positive externality in the future
b) If some action is associated with negative externality, it must be forbidden to
achieve economic efficiency
c) Positive externalities increase efficiency, so markets with them should not be
subject to government intervention
d) If externality appears in a monopolized market, the inefficiency is doubled and
strict regulation is called for
19) Which of the following best describes the Lucas Critique?

a) The economy of the Galactic Empire in ‘Star Wars’ is very unrealistic
b) Economists should not use too much math in their papers
c) It is generally not a good idea to use relationships found in
historical data for policy-making
d) Consumers do not maximize utility in real life
20) Which of the following is typically not a role of a central bank?

a) The executor of monetary policy
b) Lender of last resort
c) The sole issuer of legal tender
d) All other options are typical CB’s roles
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Good luck!
Question 1. “Dynamic Equilibrium” (30 raw points)

Oil (good A) and Gas (good B) are substitutes in consumption; the demand
and supply functions are given by:
Good Demand Supply

Oil (A) = -2 + = -10 + 2
Gas (B) = 80 - 6 +2 = -5 +
(a) (5 rp) Find equilibrium prices ⋆ and ⋆ if = 210.

(b) (10 rp) Now consider a dynamic version of this model. We consider the
demand for Gas constant for simplicity, but the demand for Oil is volatile. In period
, parameter takes the value of . Suppose that 1 = 210, so in the first period,
the equilibrium from part (a) realizes.
For producers of both natural resources, it takes some time to change
production capacity, so they have to make a production decision one period before
the actual sale occurs. In the first period ( = 1), they expect the demand for Oil to fall
sharply, so the expected 2 equals 80. How many units of Oil and Gas will be
produced for selling in period 2?
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VEO
(c) (5 rp) The prediction of demand decline turned out to be wrong, so 2

remained at level 210. Still, the goods are produced, and capacity is exhausted.
What prices of Oil and Gas will clear the market?
(d) (10 rp) Suppose that starting from period 2, firms’ expectations are naïve.
This means that they always expect the next period’s prices to equal the prices in the
current period and make decisions about future production based on this prediction.
At the same time, the actual value of always remains 210. What will happen to
prices and outputs when → ∞?
Solution
(a) By setting demand equal to supply on both markets, we get a system of
two equations:
210 − 2 A + = −10 + 2PA,
80 − 6 + 2 = −5 + .
From that we get ⋆ = 62.5 and ⋆ = 30.
(b) The producers predict future prices thinking that = 80, that is, solving
the system:
80 − 2 A + PB = −10 + 2PA,
80 − 6 + 2 = −5 + .
From that we get = 27.5 and = 20. Plugging these to the equations, we get
the outputs: = 45, = 15. These outputs will actually be produced for sale in
period 2.
(c) Given that the outputs are already produced, when = 2 comes, supply is
perfectly inelastic: = 45, = 15. The actual demand function has = 210. The
markets are cleared when:
210 − 2 A +PB= 45,
80 − 6 + 2 = 15.
Of course, the prices skyrocketed: = 105.5 and = 46.
(d) We can continue this process further. At prices = 105.5 and = 46,
the firms will produce = 201, = 41. This, in turn, will lead to market-clearing
prices = 9.3 and = 9.6. At these prices, the firms will produce = 8.6, =
4.6. This will lead to prices at around 128 and 55. It can be seen that the system
diverges — prices fluctuate more and more.
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At some point, prices and/or outputs will reach zero levels, and if the firms’
expectations remain naïve, the system will go through a cycle of extremely high and
extremely low outputs and prices.
Marking Scheme
(a) 0 rp – at least one equilibrium price value is incorrect
5 rp – both equilibrium price values are correct
(b) 0 rp – at least one equilibrium price is incorrect
5 rp – both equilibrium prices are correct, but at least one quantity is incorrect
10 rp – both quantities correct (with correct prices or without mentioning prices)
(c) 0 rp – at least one equilibrium price is incorrect
5 rp – both equilibrium price values are correct
(d) 0 rp – no answer or very little explanation with no clear idea
5 rp - explanation of the idea that fluctuations continue (no matter if
covergence or divergence); argument needs to stick to model framework
10 rp - explanation of idea of increasing fluctutations with either some kind of
(numeric)
proof or with a reference to the problem that K is open
Question 2. “Effective Lower Bound” (30 raw points)

By the assumption made by many standard textbooks and models, zero is the
lower bound of an interest rate, limiting the central bank’s capacity to stimulate the
economy through monetary policy loosening. This assumption has been disputed
recently, as central banks of several countries have set interest rates at negative levels.
Some economists tried to identify (at least theoretically) the interest rate which
is, indeed, a lower bound for expansionary monetary policy. They have found that
for an interest rate below some (probably negative) level, the further decrease may
surprisingly be contractionary. This task will walk you through their reasoning.
(a) (5 rp) Explain why zero is sometimes considered the lower bound of an
interest rate.
(b) (5 rp) Decreased interest rates lead to capital gains on securities owned
by banks, improving their capital position. Explain this phenomenon.
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(c) (10 rp) On the other hand, there is some evidence that when the interest
rates go down because of the central bank’s decision, commercial banks’ net interest
margins narrow, causing profitability decline. Explain why this might be the case.
(d) (10 rp) If the decline of today’s value of future profits outweighs the capital
gains, the bank’s overall capital position deteriorates. Explain how this may lead to
less lending by a bank, making the “stimulus” contractionary.
Solution
(a) Keeping paper currency can always bring 0 interest rate. That’s why, if
nominal interest rates are negative, people will hold cash instead of keeping money
in banks, so lowering the interest rate further would not stimulate spending.
(b) The prices (and present values) of assets are inversely related to interest
rates. So, if the rate goes down, the securities owned by a bank increase in prices.
(c) Banks net interest margins equal the difference between the lending and
the borrowing rate. The pass-through of the policy rate to market rates is imperfect
because of the stickiness of deposit rates. Banks are competing with one another, so
they will be reluctant to decrease deposit rates in fear of losing their customers. Thus,
the credit rates decline to a greater extent than deposit rates, causing the margins to
shrink.
(d) If capital position deteriorates, banks need more high quality liquid assets
(government bonds, cash) and less loan portfolio because it is not a high quality liquid
asset. It is regulated by capital requirements regulation (Basel III). This may cause a
decrease in lending.
Comment. The idea of ‘reversal interest rate’ was first expressed by Markus K.
Brunnermeier & Yann Koby in 201814. They present a theoretical model of how the
effect of interest rate decreasing may reverse, but convincing empirical evidence of
such phenomenon is still missing. For popular (ant critical) discussion of the matter,
see https://www.ft.com/content/3dbca034-df7f-11e9-9743-db5a370481bc
and https://voxeu.org/article/reversal-interest-rate-critical-review.
14 Brunnermeier, M and Y Koby (2018), “The Reversal Interest Rate,” NBER Working Paper No. 25406.
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Marking Scheme
(a) 5 points: answer clearly states holding cash (earning 0 interest) as
alternative to bank deposit;
3 points: correct logics without stating cash (earning 0 interest) as alternative
to bank deposit;
1 point: answer has some economic rationale;
0 points: other.
(b) 5 points: answer clearly states that prices of securities are inversely related
to the interest rates. Therefore, lower interest rate increases prices of securities hold
by bank. Alternatively, answer mentions net present value.
3 points: correct logics without explicitly mentioning the negative link between
interest rates and securities;
1 point: answer has some economic rationale;
0 points: other.
(c) 10 points: lending rates adjust more than deposit rates (lending rates are
linked to money market rates, but deposit rates are fixed). Banks’ borrowing (deposit)
market is more competitive. Lending market is more segmented, regional, less
competitive.
8 points: lending rates adjust more than deposit rates (lending rates are linked
to money market rates, but term deposit rates are fixed at the beginning). Deposit
rates already are close to 0 and negative deposit rates can lead to withdrawal of
deposits.
5 points: all rates are decreasing; thus net interest margins narrow. Low rates
equal less profit.
2 points: people withdraw money from banks. Trust issues.
1 point: answer has some economic rationale.
(d) 10 points: full explanation;
8 points: banks switch to bonds;
4 points: less money means less loans; bank loses money; lower demand for
loans;
1 point: answer has some economic rationale.
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VEO
Question 3. “Pandemic Possibility Frontier” (30 raw points)

Last year, IEO contestants were asked to solve a problem about an optimal
lockdown.
Unfortunately, in 2021 this topic is no less relevant. So suppose society is
facing a severe viral pandemic and contemplates introducing a lockdown. How strong
should the lockdown be?
The answer to this question apparently depends on the preferences of the
society between the lives/health of people and GDP. Or does it really?
Let ∈ [0, 1] be the level (strength) of a lockdown ( = 0 is no lockdown while
= 1 is complete lockdown) and be some measure of the total amount of virus in
circulation.
The relation between the two is given by = 2(1 - ). Aggregate demand in
the economy is given by the function = 10 - 2 - while aggregate supply is
governed by the equation =2+ - - ⋅ where ⩾ 0 is a parameter; is real
GDP and is price level, as usual. Finally, let be the aggregate health of people;
it depends on the amount of virus in circulation as follows: = 3 - /2.
Define the Pandemic Possibility Frontier (PPF, for short) as the set of all pairs
( , ) that can be achieved by a policy-maker by choosing various levels of lockdown
∈ [0, 1].
(a) (7 rp) Give a reason for why may be positive.
(b) (16 rp) Sketch the PPF and show the coordinates of its extreme points if
= 1 and = 2 (on two different diagrams).
(c) (7 rp) Suppose the preferences of the society over GDP-Health
combinations ( , ) are given by some family of indifference curves. In practice, no
one knows a society’s indifference curves exactly; this generates heated debate about
the optimal level of lockdown. For which values of a policy-maker does not have to
know the society’s indifference curves over ( , ) in order to find the optimal level of
lockdown? (The policy-maker still knows all the data in the task and assumes correctly
that the society values each of and .)
Solution
(a) A positive means that the amount of virus has a direct negative effect on
aggregate supply. This may be due to an adverse effect of the virus on labor supply:
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people who are sick or have died cannot work. Also, when the amount of virus grows,
some people may choose voluntarily to work from home rather than from office and,
at least in some occupations, this lowers labor productivity and thus GDP supplied.
(b) It is convenient to derive the PPF equation for all at once. First, equate
aggregate demand and aggregate supply:
10 − 2 − = 2 + − − ,
so equilibrium price level is = (8 − + )/2 = 4 − /2 + /2 and thus,
equilibrium GDP is =2+ − − = 6 − 3 /2 − /2. Plugging = 2(1 − )
in the last equation, we get
= 6 − 3 /2 − (1 − ) = 6 − − (3/2 − ) .
Health, in its turn, depends on the level lockdown as follows:
= 3 − /2 = 3 − (1 − ) = 2 + .
Note that since ∈ [0,1] ranges from 2 to 3.
To derive the PPF, we eliminate from the last two equations by expressing it,
say, in terms of and plugging the result into the equation for . Namely, = −
2, so finally
= 6 − − (3/2 − ) = 6 − − (3/2 − )( − 2) = 9 − 3 − (3/2 − ) .
Now it is easy to answer parts (b) and (c).
For = 1 the PPF equation is = 6 − /2. It is a downward-sloping line with
extreme points (2, 5) and (3, 4.5) (recall that takes values from 2 to 3). The first
point corresponds to = 0 and the second to = 1.
For = 2 the PPF equation is = 3+ /2. It is a upward-sloping line with
extreme points (2, 4) and (3, 4.5). The first point corresponds to = 0 and the second
to = 1.
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(c) If the PPF is downward-sloping, the optimal lockdown depends nontrivially

on the society’s preferences as different families of indifference curves will give rise to
different points of tangency with the PPF. There is a nontrivial trade-off between lives
and GDP that can be resolved only with the knowledge of society’s preferences.
On the other hand, if the PPF is upward-sloping (or flat), the society should
choose the rightmost point on the PPF regardless of its preferences since this point
generates the highest possible levels of GDP and Health simultaneously. There’s no
trade-off. Thus, the optimal lockdown will be unambiguously ⋆ = 1; one won’t have
to know the society’s preferences in order to make this conclusion.
So it remains to find for which the PPF is upward-sloping or flat. From our
general derivation above, we see that this will happen if and only if ≥ 3/2.
Note that our conclusion is intuitive: a strong lockdown becomes good for both
Health and GDP and there is no trade-off exactly when the negative effect of the virus
on labor supply is strong enough.
Comment. Modern economic modeling and statistical techniques allow to
estimate a Pandemic Possibility Frontier on real data. For example, economists Greg
Kaplan, Benjamin Moll and Giovanni L. Violante have estimated
(https://www.nber.org/papers/w27794) the Pandemic Possibility Frontier for the US
in the context of COVID-19 pandemic. The PPF turns out to be downward-sloping and
highly nonlinear. The authors estimated the effect of various non-lockdown policies
on the location and shape of the frontier. Beside that, the authors coined the very term
Pandemic Possibility Frontier for which we credit them.
Marking Scheme
(a) 7 points for at least one valid explanation is given for the negative direct
effect of the virus on aggregate supply.
If a contestant just states something along the lines of “if is negative then we
get a positive effect of virus on GDP which is illogical” she gets 0 points. The problem
asks for a reason why may be positive, not why it is not negative. So a contestant
was expected to provide an economic mechanism explaining the negative effect of
the virus on aggregate supply.
If a contestant writes about the effect of on aggregate demand, she gets 0
points.
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Moreover, if a contestant states that reflects the effect of on GDP supplied

via lockdown (as in “if grows, there will be a stronger lockdown which will slow down
aggregate supply” ), she also gets no credit, as it is clear from the equation that
reflects only the direct effects of on aggregate supply, i.e. the effect when is fixed.
(b) A contestant gets:
1 point for giving a sketch of a downward-sloping PPF if = 1;
2 points for giving a sketch of an upward-sloping PPF if = 2;
2 points for deriving the H-coordinates of the PPF extreme points (that do not
depend on ):
1 point for getting an expression of in terms of , 1 point for plugging =0, 1;
11 points for deriving the Y-coordinates of the PPF extreme points:
3 points for the idea that demand should equal supply;
1 ⋅ 2 = 2 points for correctly solving for in terms of , for each of =1, 2;
1 ⋅ 2 = 2 points for correctly solving for in terms of , for each of =1, 2;
1 ⋅ 2 = 2 points for correctly solving for in terms of only for each of =1, 2;
1 ⋅ 2 = 2 points for correctly finding the -coordinates of the extreme points
for each of = 1, 2.
(c) 4 points for correctly finding the condition ⩾ 3/2
3 points for the explanation
If a contestant states the answer = 3/2 rather than ⩾ 3/2, she gets 3 points
overall for this part.
If a contestant mentions the idea of tangency without making further progress,
she gets 1 point.
Question 4. “Pay as You Earn” (30 raw points)

Different college graduates earn different salaries, even after graduating from
the same institution. Some are less successful or lucky (and thus have lower salaries);
others don’t pursue maximization of their earnings, leaning towards socially-oriented
not-for-profit jobs. Even if student loans are available, students may abstain from
entering prestigious and expensive colleges, uncertain that they will be able to repay.
This may create an inefficient allocation when most risk-loving and not most talented
young people get the best education. (And then some of them fail to pay off the loans.)
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Consider the following alternative to a traditional student loan which intends

to solve this inefficiency problem. A student enters college tuition-free, and after
graduation, they pay the college a certain percentage of their salary for a fixed
number of years. So, a student never has to pay for their education more than they
earn after receiving it. The income percentage to be paid is calculated based on an
average graduate’s salary, so the program should finance itself.
(a) (20 rp) Despite its apparent advantages, this type of education financing
is uncommon. Skills training programs (such as coding academies and bootcamps)
are more likely to offer it than prominent universities. Explain why the program
designed as described above may fail economically in a large university but is more
likely to be feasible in a bootcamp.
(b) (10 rp) Suggest a tweak to the program conditions, which might help solve
the problem mentioned in (a).
Comment. This scheme of payment for education is often referred to as Income

Sharing Agreement (ISA). One of the most famous examples of an institution using it
is Lambda School (https://lambdaschool.com, coding school and bootcamp).
Solution
(a) In large colleges and universities, the students are very diverse in terms of
future incomes — much more diverse than in specific skills training programs. If you
come to such a program to learn to code on Python, the set of skills you acquire and
the salary you’ll earn with these skills are more predictable for the education institution
than if you enter a long-term program. Notably, a student has more information about
himself/herself than the institution or a bank. Those students who enter undergraduate
studies and aspire to make a career as a high-paid professional are unlikely to go for
ISA. On the other hand, students who think about jobs in the non-commercial sector
will go for it because, for them, it’s just cheaper than conventional credit. So, only
low-paying individuals will go for ISA, and the program will fail economically. This
problem is known as adverse selection.
(b) One of the ways to change the design of the program (that is used
sometimes in ISA) is not to calculate an income percentage to be paid based on the
average graduate’s salary, but cap the absolute amount. This will stimulate high
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earners to participate because they won’t be penalized for earning more. In this case,
the problem of adverse selection will be (at least partially) eliminated, although the
percentage to be paid will likely increase.
Marking Scheme
(a) Difference: bootcamps are more focused on specific skills that can be
evaluated (in terms of future earnings) in advance — 5 rp
Colleges have more diverse students, and information is asymmetric: students
know better whether they aspire to be high earners — 5 rp
This prevents colleges to set different rates for different students, and this causes
adverse selection: high-earners won’t go for this option. That’s why the way the rate
is calculated (simple average) will lead to losses. — 10 rp
Partial grades:
Graduates may hide their salaries (hard to verify) — 5 rp total. (Not a full
mark, because this evasion can be accounted for in calculating the average, so the
failure is not explained.)
(b) Cap on earnings or some other explanation which includes regressive rate
– 10 rp
If the correct idea is mentioned but the explanation is missing or insufficient — 5 rp
Question 5. “Vaccination Dilemmas” (30 raw points)

The city of Vaccineville has a lot of residents. During the coronavirus
pandemic, the city authorities are not imposing a lockdown but are urging all
residents to get vaccinated. A vaccine is available in the city and can be administered
to any resident who wants to get it.
The likelihood for a person P to contract the coronavirus depends on whether
he or she is vaccinated, as well as what proportion of other residents are vaccinated.
For simplicity, assume that every day all residents meet in random pairs, so the
probability of meeting a vaccinated person equals the proportion of residents that
are vaccinated (assume that the population is very large, so whether one person is
vaccinated does not affect to any significant extent). The risk for person P to contract
the coronavirus in different matches are given by their probability of being infected
that are included in the following table:
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VEO
...and meets smb. ...and meets smb. non-

Person P…
vaccinated vaccinated
...is vaccinated... 0 0.05
...is not
0.15 0.4
vaccinated...
All residents consider vaccination a costly procedure. Even though the vaccine
is offered free of charge, the cost may come in the form of the time needed to be spent
visiting a doctor, lack of trust in the effectiveness and safety of the vaccine, side effects,
etc. A person’s utility equals the probability of not being infected when she meets
someone. For those vaccinated, the cost of vaccination that is equal to 0.3 is
subtracted from utility.
(a) (10 rp) Suppose people decide individually whether to get vaccinated;
each of them maximizes their utility. We say that people’s decisions form a Nash
equilibrium if no one can benefit by changing their decision with others’ decisions
fixed. What fraction of Vaccineville residents will get vaccinated in the Nash
equilibrium?
(b) (10 rp) Vaccinetown is just like Vaccineville in all aspects, except that its
authorities force some of its citizens to get vaccinated. In particular, vaccination is
mandatory for doctors and teachers, which together constitute 20% of the town’s
population. All other residents decide individually whether to get vaccinated or not.
What fraction of Vaccinetown residents will get vaccinated in the Nash equilibrium?
(c) (10 rp) Now suppose that cost of vaccination is different across the
population. It is not 0.3 for everyone, but instead, it ranges from zero for some people
to very high for others. The authorities want to shift the equilibrium so that more people
get vaccinated by making vaccination mandatory for some of them. They know what
groups of people have low, medium, and high vaccination costs and can choose for
whom to make vaccination mandatory. Knowing that it is politically infeasible to make
vaccination mandatory to everyone, what is your recommendation regarding this
matter? Explain using the concept of Nash Equilibrium.
Solution
(a) The probability of being infected for a vaccinated person is 0 ⋅ + 0.05 ⋅
(1 − ) = 0.05−0.05 . The probability of being infected for a non-vaccinated person
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is 0.15 +0.4⋅(1− ) = 0.4 − 0.25 . In equilibrium, utilities must be equal, otherwise

a few non-vaccinated people would regret and get the vaccination or vise versa.
1 − (0.05 − 0.05 ) − 0.3 = 1 − (0.4 − 0.25 ).
In equilibrium, ⋆ = 0.25.
(b) Residents who are forced to be vaccinated are included in , so
marginally, the utilities remain the same. So, 25%.
(c) People with low costs of vaccination are likely to do it voluntarily. So,
medium and high-cost population groups remain. Reasoning in terms of the Nash
Equilibrium, forcing high-cost people into vaccination can make vaccination less
attractive for some medium-cost residents (not to mention it would require more effort),
so the total number of immunized people will not increase. For each of them, the
probability of meeting a non-vaccinated person decreases (see part (b) with a similar
effect). So, authorities should force into vaccination those with middle cost of
vaccination.
Marking Scheme
(a) 0 rp – no correct results are reached
3 rp – probabilities are correct
6 rp – Utilities are correct too
10 rp – Nash equilibrium, correct result
only correct number: 2rp
(b) If model is repeated, same as (a)
Otherwise:
0 rp – no correct results are reached
4 rp – mentioning that 20% < 25%
10 rp – answer is correct
only correct number: 2rp
(c) 0 rp – no answer or no correct results are reached
+ 2 rp – very little explanation, understanding the “crowding out” effect of
forced vaccinations on non-forced people.
+ 5 rp - explanation of the idea using the concept of Nash Equilibrium without
a correct recommendation (+7 if understood that the low-cost residents might
vaccinate on their own)
10 rp - explanation of the idea using the concept of Nash Equilibrium with a
correct recommendation only correct recommendation: 2rp
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VEO
1 Business Decisions
An optimist is trying to get a job as a CEO. Her constant optimism is well-known to
everyone: she always believes that the probability of a good outcome is higher than
it actually is. Which of the following firms should hire her?
A. An insurance firm operated in a competitive market, serving
customers with an unknown probability of an accident
B. A natural monopoly that faces uncertainty about future
government regulation policies
C. One of the few major car manufacturers in the oligopolistic market
with an uncertain demand function
D. No one because her irrationality will reduce the expected profit
2 Competition
Which of the following can be observed in a perfectly competitive market?
# Answers
A. Huge advertising expenditures

B. Substantial investment in R&D
C. Significant economic rents in the long run
D. All trades take place at the same price
3 Development
Choose the correct statement about economic development.
# Answers
A. Share of labor devoted to agriculture generally declines as

countries get richer
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B. With the Industrial Revolution, the dominating sector of most

economies moved from agriculture to services
C. Economic growth is always associated with the decrease in the
annual hours worked by an average person
D. Average GDP per capita in the World increased by more than 50
times during the second half of the 20th century
4 Empirical Economics
Which one of the following is an example of a natural experiment?
# Answers
A. To conduct clinical trials of a new medication, patients are

randomly divided into two groups
B. To see which textbooks are more efficient to study math, the
government obliges half of the country’s schools to use textbook
A and the other half to use textbook B
C. Different regions of a country may have different fines for speeding,
so one can study how changes in fines affect drivers’ behavior
D. None of the other options is correct
5 Environment
Which of the following is the most practical and effective policy to deal with carbon
emissions caused by driving a car?
# Answers
A. A quota on individuals to limit their driving

B. A subsidy to car sharing operators
C. A petrol tax
D. Nationalization of all car producers
Comment The Jury has decided to count two options as correct
answers
6 Finance
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VEO
Consider a preferred share that entitles the shareholder to receive $600 on April 1
each year forever, however, the firm can postpone payments in some cases. On
March 31, 2022, when the share price was $6600, the firm announced that it
decided to postpone the payment for 1 year because of insufficient cash on hand.
So, instead of the payment on April 1, 2022, the shareholders will receive a double
payment on April 1, 2023. Find the approximate share price right after the
announcement, other things being equal.
# Answers
A. $6600
B. $6545
C. $6000
D. $5871
7 Finance
Following the unexpected interest rate increase, the price of which of the following
risk-free bonds will drop the most (in percentage to its pre-interest-rate-increase
price)
# Answers
A. Long-term zero-coupon bonds

B. Long-term bonds with high fixed coupon rates
C. Short-term zero-coupon bonds
D. Short-term bonds with high fixed coupon rates
8 Foreign Exchange
An unanticipated increase in domestic interest rate will, most likely, lead to
# Answers
A. Depreciation of domestic currency in the short run

B. Appreciation of domestic currency in the short run
C. Increase in domestic investment in the short run
D. Increase in domestic taxes in the short run
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9 Inequality
Economist G calculates income inequality in some real-world country based on the
Gini coefficient and the pretax (gross) incomes of all households in the society.
Economist D calculates income inequality in the same country based on the Gini
coefficient and the disposable incomes of all households in the society. Which of the
following is likely to be true?
# Answers
A. G’s Gini coefficient is smaller than D’s

B. D’s Gini coefficient is smaller than G’s
C. The two Gini coefficients are the same
D. None of the other statements is true
10 Inequality
In this diagram, you can see the income distribution in Bolivia in 2020 based on
the available microdata. The dashed line is the cumulative income (left axis), colorful
bars represent income of all percentiles (without accumulation, right axis).
What is the closest estimate of the Gini Index?
# Answers
A. 0
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B. 0.4
C. 0.8
D. 1
11 International Trade
Which of the following is the least likely to prevent the ‘Law on One Price’ from
holding in international trade?
# Answers
A. One monopolist supplier on multiple markets & inability to resell

the traded good
B. Import tariffs
C. Common land border between the exporting and the importing
countries
D. Transportation costs
12 Labor Market
The diagram shows a competitive labor market. Which one of the following could
NOT cause the increase in the wage rate from W to W1 as shown in the diagram?
# Answers
A. An increase in the productivity of labor
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B. A wave of immigration of workers

C. Government subsidy to firms who hire workers in this industry
D. An increase in demand for the final product
13 Labor Market
Under which circumstances may setting the minimum wage increase employment?
# Answers
A. Perfectly competitive labor market

B. Employers have market power in wage setting
C. Having heard about the minimum wage, new labor force
immigrates (assume perfectly competitive labor market)
D. None of the other answers is correct
14 Macroeconomic Data
What is the closest estimate of the whole World’s GDP (in current USD)?
# Answers
A. 100 billion
B. 1 trillion
C. 100 trillion
D. 1,000 trillion
Which of the following pairs of indicators commonly have positive correlation?
# Answers
A. Bond prices and interest rates

B. Inflation and unemployment
C. GDP and unemployment
D. GDP and job creation
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16 Macroeconomic Policies
# Answers
A. A reduction in tax rates is a monetary policy used to fight

recession
B. Stagflation is caused by a sharp decrease in Aggregate Demand
C. A decrease in required reserves is one of the policies that
can be used to fight inflation
D. All other statements are false
17 Market Failures
Which one of the following is an example of market failure?
# Answers
A. Workers of a firm take less care of the office equipment

because the employer will cover the repair costs
B. Government provision of fire stations that is greater than the
social optimum number
C. Lower wages overseas create incentives for firms to hire foreign
workers
D. Unintended consequences that follow the introduction of an
indirect tax
18 Monopoly and Oligopoly
The monopoly works in a market with demand curve Q = 1190/P7, its total cost
function is given by TC = 2Q. The government decides that the firm must split into
two, and these two firms will compete by simultaneously choosing prices. Assuming
one-shot interaction, what is the percentage change of their joint profit after splitting?
# Answers
A. −14%
B. −100%
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C. 0%
D. +15%
19 Monopoly and tax

A monopolist with the demand function Q = 100 − P and marginal cost MC = $20
faces the per- unit tax of t = $10. By how much will the price for consumers increase?
# Answers
A. $5
B. $10
C. 5%
D. 10%
20 Oligopoly
Choose the correct statement regarding a duopolistic market.
# Answers
A. If firms compete by choosing quantities, each of them wants

to be the second to make a choice
B. If firms repeat their game three times (periods), a monopoly
profit can be achieved in the first period
C. If firms compete by choosing prices, each of them wants to be the
first to make a choice
D. If firms merge, their joint profit will increase compared to the one
under duopoly
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Good luck!
Question 1. “Measuring Inequality” (30 raw points)

In most of the tasks about inequality that you might encounter, the data on
income or wealth is given and is not questioned. In reality, however, the estimates of
these numbers can be biased, and these biases can make an unjustified impression
about whether inequality is high or low. Unjustified impressions, in their turn, may
lead to unreasonable policy-making. In this task, we will discuss what these biases
might be and where they can come from.
(a) (10 rp) Ann uses the administrative (tax) microdata to estimate the income
inequality in country N. In particular, she takes the amounts of income tax paid by all
households per year, calculates incomes dividing tax payments by the tax rates and
gets the Gini coefficient based on this income distribution. Bob argues that due to this
approach, Anna is likely to overlook a substantial part of the real income distribution.
What part is it? Does this bias lead to overestimating or underestimating the extent of
income inequality?
(b) (10 rp) Bob uses the surveys data to estimate the income inequality in
country N. In particular, he refers to the statistics obtained by a sociological service
that regularly asks people about their households’ consumption spending (income
surveys are also available, but Bob doesn’t trust how households report their incomes).
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Ann argues that Bob’s results are biased, too. Why is that? Does this bias lead to
overestimating or underestimating the extent of income inequality?
(c) (10 rp) Carol believes that over time, top 1 percent of incomes in country N
are rising more quickly than average incomes. To verify this belief, she has taken Ann’s
and Bob’s estimates at different times. It turned out that one of them does not contradict
the belief, but the other one does. Explain which one is which and why it is so.
Question 2. “Trade Sanctions and Segmentation” (30 raw points)

There are 100 countries in the World. Demand in country number for natural
gas is given by ( ) = 100 − , while its supply is given by ( )= .
(a) (5 rp) Find equilibrium prices ⋆ when countries do not trade with each
other.
(b) (5 rp) Assume there is a global market for natural gas, in which all
countries participate. Find the equilibrium in this market. Determine what countries
are net exporters of the natural gas and what countries are net importers.
(c) (5 rp) Assume that the world imposes sanctions against country number
and discontinues trade with it. How will this affect the world price? Which agents in
other countries will gain and which will lose? What can one say about the change in
consumer and producer welfare in country ?
(d) (15 rp) Now assume that the global market splits into several blocs (some
perhaps consisting of a single country); there is free trade within each bloc but no
trade across blocs.
Answer the following questions and explain your answers, comparing the results of
destruction of the global market to the free trade situation in part (b).
(d1) (5 rp) Can there be a country where the joint welfare of all consumers
and all producers improve?
(d2) (5 rp) Can there be a bloc where the joint welfare of all consumers and
all producers improve?
(d3) (5 rp) What happens to the joint welfare of all consumers and all
producers in the world?
Question 3. “How to Finance Government Spending” (30 raw points)
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Consider a closed economy where consumption spending depends on output:

= 0 +0.8 , where 0 > 0 is autonomous consumption and is disposable
income (income after tax). The tax rate is flat at the level of 20% on all income without
double taxation. The ShortRun Aggregate Supply (SRAS) is flat at = 1. Investment
is given by = 7.5 − 4 , where is the real interest rate expressed in percentage
points (for example, = 1.12 means that interest rate is 1.12%, not 112%). The supply
of loanable funds is given by = 16 . Initially, the equilibrium level of GDP ⋆ = 100,
all demand for loanable funds comes from investment, the state budget is balanced.
The government wants to reduce unemployment and increases by 10.
(a) (10 rp) Assume that the government just has this money at its disposal, so
there is no need to borrow it or find elsewhere. How will the increase in affect GDP?
If the increase in GDP does not equal to the increase in , explain the difference.
(b) (10 rp) Now, assume that the government will finance its new spending
through collected taxes, thus adjusting the tax rate. Find the new level of GDP in
equilibrium. If it does not equal to the new level of GDP in (a), explain the difference.
(c) (10 rp) Assume that instead of raising taxes, the government will borrow
10 in the financial market, affecting the interest rate. How will this affect GDP when
the goods market and the loanable funds market are the new equilibrium? If it does
not equal the new level of GDP does not equal the new level of GDP in (a), explain
the difference.
Question 4. “Shadow Economy” (30 raw points)

One of the problems with the GDP indicator is its inability to account for the
production of goods and services in the underground (shadow) economy. By this we
mean not only illegal production of forbidden goods and services but also housework,
helping friends, etc. — everything that is not observable for official statistics, but
would have to be included in GDP if it were observable.
Clearly state two different approaches for estimating the size of the shadow
economy of a country. Explain why your approaches may work to achieve this goal.
Also explain why they might not work (the disadvantages).
Question 5. “Going Green” (30 raw points)
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There are two groups of consumers of solar panels in country S: 150,000

households who consider purchasing them because they care about the environment
and 200,000 households who consider purchasing them because it is trendy (this is
sometimes called the bandwagon effect). The demanded quantities of the solar panels
are given by:
(are) = 150,000 − ,
(andwagon) = 40,000 − 5 + 500 N ,
where is the price of a solar panel (in USD) and is the total quantity of solar panel
users (in equilibrium, = + ). For simplicity, assume that , , and can
be non-integer.
The supply of the solar panels is perfectly elastic, = 25,000.
The market adjusts to the equilibrium in the following way. First, customers
who care about the environment decide whether they will have solar panels. At every
step after that, customers from the ‘trendy’ group observe the quantity of solar panels
around and decide whether they will have solar panels based on this observation.
This goes on until everyone is happy with their choice.
(a) (5 rp) How many solar panels will be purchased?
(b) (15 rp) The government introduces a per-unit subsidy = $5,000. Calculate
the quantity of solar panels in equilibrium.
(c) (10 rp) After the equilibrium from (b) is reached, the government
surprisingly eliminates the subsidy. Customers have the opportunity to return the once-
purchased solar panels and get $25,000 refunded (and indeed do this if their
willingness to pay is below 25,000 per panel). Find the new equilibrium quantity of
installed solar panels. Is your answer the same as in (a)? Why or why not?
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1 Business Decisions
An optimist is trying to get a job as a CEO. Her constant optimism is well-known to
everyone: she always believes that the probability of a good outcome is higher than
it actually is. Which of the following firms should hire her?
A. An insurance firm operated in a competitive market, serving
customers with an unknown probability of an accident
B. A natural monopoly that faces uncertainty about future
government regulation policies
C. One of the few major car manufacturers in the oligopolistic market Correct
with an uncertain demand function
D. No one because her irrationality will reduce the expected profit
2 Competition
Which of the following can be observed in a perfectly competitive market?
# Answers
A. Huge advertising expenditures

B. Substantial investment in R&D
C. Significant economic rents in the long run
D. All trades take place at the same price Correct
3 Development
Choose the correct statement about economic development.
# Answers
A. Share of labor devoted to agriculture generally declines as Correct

countries get richer
B. With the Industrial Revolution, the dominating sector of most
economies moved from agriculture to services
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C. Economic growth is always associated with the decrease in the

annual hours worked by an average person
D. Average GDP per capita in the World increased by more than 50
times during the second half of the 20th century
4 Empirical Economics
Which one of the following is an example of a natural experiment?
# Answers
A. To conduct clinical trials of a new medication, patients are

randomly divided into two groups
B. To see which textbooks are more efficient to study math, the
government obliges half of the country’s schools to use textbook
A and the other half to use textbook B
C. Different regions of a country may have different fines for speeding, Correct
so one can study how changes in fines affect drivers’ behavior
D. None of the other options is correct
5 Environment
Which of the following is the most practical and effective policy to deal with carbon
emissions caused by driving a car?
# Answers
A. A quota on individuals to limit their driving

B. A subsidy to car sharing operators Correct
C. A petrol tax Correct
D. Nationalization of all car producers
Comment The Jury has decided to count two options as correct
answers
6 Finance
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Consider a preferred share that entitles the shareholder to receive $600 on April 1
each year forever, however, the firm can postpone payments in some cases. On
March 31, 2022, when the share price was $6600, the firm announced that it
decided to postpone the payment for 1 year because of insufficient cash on hand.
So, instead of the payment on April 1, 2022, the shareholders will receive a double
payment on April 1, 2023. Find the approximate share price right after the
announcement, other things being equal.
# Answers
A. $6600
B. $6545 Correct
C. $6000
D. $5871
7 Finance
Following the unexpected interest rate increase, the price of which of the following
risk-free bonds will drop the most (in percentage to its pre-interest-rate-increase
price)
# Answers
A. Long-term zero-coupon bonds Correct

B. Long-term bonds with high fixed coupon rates
C. Short-term zero-coupon bonds
D. Short-term bonds with high fixed coupon rates
8 Foreign Exchange
An unanticipated increase in domestic interest rate will, most likely, lead to
# Answers
A. Depreciation of domestic currency in the short run

B. Appreciation of domestic currency in the short run Correct
C. Increase in domestic investment in the short run
D. Increase in domestic taxes in the short run
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9 Inequality
Economist G calculates income inequality in some real-world country based on the
Gini coefficient and the pretax (gross) incomes of all households in the society.
Economist D calculates income inequality in the same country based on the Gini
coefficient and the disposable incomes of all households in the society. Which of the
following is likely to be true?
# Answers
A. G’s Gini coefficient is smaller than D’s

B. D’s Gini coefficient is smaller than G’s Correct
C. The two Gini coefficients are the same
D. None of the other statements is true
10 Inequality
In this diagram, you can see the income distribution in Bolivia in 2020 based on
the available microdata. The dashed line is the cumulative income (left axis), colorful
bars represent income of all percentiles (without accumulation, right axis).
What is the closest estimate of the Gini Index?
# Answers
A. 0
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VEO
B. 0.4 Correct
C. 0.8
D. 1
11 International Trade
Which of the following is the least likely to prevent the ‘Law on One Price’ from
holding in international trade?
# Answers
A. One monopolist supplier on multiple markets & inability to resell

the traded good
B. Import tariffs
C. Common land border between the exporting and the importing Correct
countries
D. Transportation costs
12 Labor Market
The diagram shows a competitive labor market. Which one of the following could
NOT cause the increase in the wage rate from W to W1 as shown in the diagram?
# Answers
A. An increase in the productivity of labor
Trang 287
B. A wave of immigration of workers Correct

C. Government subsidy to firms who hire workers in this industry
D. An increase in demand for the final product
13 Labor Market
Under which circumstances may setting the minimum wage increase employment?
# Answers
A. Perfectly competitive labor market

B. Employers have market power in wage setting Correct
C. Having heard about the minimum wage, new labor force
immigrates (assume perfectly competitive labor market)
D. None of the other answers is correct
What is the closest estimate of the whole World’s GDP (in current USD)?
# Answers
A. 100 billion
B. 1 trillion
C. 100 trillion Correct
D. 1,000 trillion
Which of the following pairs of indicators commonly have positive correlation?
# Answers
A. Bond prices and interest rates

B. Inflation and unemployment
C. GDP and unemployment
D. GDP and job creation Correct
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VEO
16 Macroeconomic Policies
# Answers
A. A reduction in tax rates is a monetary policy used to fight

recession
B. Stagflation is caused by a sharp decrease in Aggregate Demand
C. A decrease in required reserves is one of the policies that
can be used to fight inflation
D. All other statements are false Correct
17 Market Failures
Which one of the following is an example of market failure?
# Answers
A. Workers of a firm take less care of the office equipment Correct

because the employer will cover the repair costs
B. Government provision of fire stations that is greater than the
social optimum number
C. Lower wages overseas create incentives for firms to hire foreign
workers
D. Unintended consequences that follow the introduction of an
indirect tax
18 Monopoly and Oligopoly
The monopoly works in a market with demand curve Q = 1190/P7, its total cost
function is given by TC = 2Q. The government decides that the firm must split into
two, and these two firms will compete by simultaneously choosing prices. Assuming
one-shot interaction, what is the percentage change of their joint profit after splitting?
# Answers
A. −14%
B. −100% Correct
Trang 289
C. 0%
D. +15%
19 Monopoly and tax

A monopolist with the demand function Q = 100 − P and marginal cost MC = $20
faces the per- unit tax of t = $10. By how much will the price for consumers increase?
# Answers
A. $5 Correct
B. $10
C. 5%
D. 10%
20 Oligopoly
Choose the correct statement regarding a duopolistic market.
# Answers
A. If firms compete by choosing quantities, each of them wants

to be the second to make a choice
B. If firms repeat their game three times (periods), a monopoly
profit can be achieved in the first period
C. If firms compete by choosing prices, each of them wants to be the Correct
first to make a choice
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VEO

Good luck!
Question 1. “Measuring Inequality” (30 raw points)

In most of the tasks about inequality that you might encounter, the data on
income or wealth is given and is not questioned. In reality, however, the estimates of
these numbers can be biased, and these biases can make an unjustified impression
about whether inequality is high or low. Unjustified impressions, in their turn, may
lead to unreasonable policy-making. In this task, we will discuss what these biases
might be and where they can come from.
(a) (10 rp) Ann uses the administrative (tax) microdata to estimate the income
inequality in country N. In particular, she takes the amounts of income tax paid by all
households per year, calculates incomes dividing tax payments by the tax rates and
gets the Gini coefficient based on this income distribution. Bob argues that due to this
approach, Anna is likely to overlook a substantial part of the real income distribution.
What part is it? Does this bias lead to overestimating or underestimating the extent of
income inequality?
(b) (10 rp) Bob uses the surveys data to estimate the income inequality in
country N. In
particular, he refers to the statistics obtained by a sociological service that regularly
asks people about their households’ consumption spending (income surveys are also
available, but Bob doesn’t trust how households report their incomes). Ann argues
Trang 291
that Bob’s results are biased, too. Why is that? Does this bias lead to overestimating
or underestimating the extent of income inequality?
(c) (10 rp) Carol believes that over time, top 1 percent of incomes in country
N are rising more quickly than average incomes. To verify this belief, she has taken
Ann’s and Bob’s estimates at different times. It turned out that one of them does not
contradict the belief, but the other one does. Explain which one is which and why it
is so.
Solution
(a) People who don’t earn taxable income do not pay taxes and don’t show
up in the tax data. They are generally near the left edge of the income distribution
(retirees, people on welfare, etc.), also people working in a shadow economy.
Because they are close to the edge, their overlooking will underestimate inequality.
(b) Very rich people are unlikely to participate in surveys (answer the questions
in the street, pick up the randomly dialed phone, etc.), so this approach will overlook
the right edge. Moreover, the more people earn, the less percentage of income they
spend (they save more), so even if there was a chance to ask all of them, income
inequality would be underestimated.
(c) If more income goes to the top of the distribution, this won’t be seen in
surveys (because they overlook the rich) but will be seen in tax data (because the rich
pay taxes).
Marking Scheme
(a) 5 points for identifying the overlooked group, 5 points for the explanation
why it underestimates inequality.
(b) 5 points for identifying the overlooked group, 5 points for the explanation
why it underestimates inequality.
(c) 5 points for correct identification of whose data contradict Carol’s
observation, 5 points for detailed explanation. If correct identification is likely to be a
coincidence (no logical explanation is given), answer is graded with 0 points.
Question 2. “Trade Sanctions and Segmentation” (30 raw points)
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There are 100 countries in the World. Demand in country number for natural
gas is given by ( ) = 100 − , while its supply is given by ( )= .
(a) (5 rp) Find equilibrium prices ⋆ when countries do not trade with each
other.
(b) (5 rp) Assume there is a global market for natural gas, in which all
countries participate. Find the equilibrium in this market. Determine what countries
are net exporters of the natural gas and what countries are net importers.
(c) (5 rp) Assume that the world imposes sanctions against country number
and discontinues trade with it. How will this affect the world price? Which agents in
other countries will gain and which will lose? What can one say about the change in
consumer and producer welfare in country ?
(d) (15 rp) Now assume that the global market splits into several blocs (some
perhaps consisting of a single country); there is free trade within each bloc but no
trade across blocs.
Answer the following questions and explain your answers, comparing the results of
destruction of the global market to the free trade situation in part (b).
(d1) (5 rp) Can there be a country where the joint welfare of all consumers
and all producers improve?
(d2) (5 rp) Can there be a bloc where the joint welfare of all consumers and
all producers improve?
(d3) (5 rp) What happens to the joint welfare of all consumers and all
producers in the world?
Solution
(a) Equilibrium in each country can be calculated in a standard way: = ,

that is 100 − = and ⋆ = 100 /(1 + ).
(b) In the global market, the total demand must equal the total supply under
the unified price , so,
100 100
 100i  p     ip 
i 1 i 1
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n n  n  1
By using i  , we get
i 1 2
100  101 100  101
100   100 p  p
2 2
Solving for , we get
⋆(b) = (100 ⋅ 101)/103 ≈ 98.06.
The countries with ⋆ < ⋆ (b) will export (they will prefer to sell to the world
market because it is profitable). That is,
100i 100  101
  101  101i  103i  i  50.5
1i 103
That is, all countries with = 1...50 will be exporters, countries with = 51...100 will
be importers.
(c) Country will disappear from the world market, both supply and demand.
Whether it sill shift the world price up or down, depends on whether was an exporter
or importer. If it was an exporter, than under the equilibrium price, more supply will
be subtracted from the world S function than demand from the world function. Thus
there will be excess demand, the price in the world will go up. If was an importer
than the world price will go down following similar logic.
This result can also be obtained analytically by subtracting demand and supply
of country and comparing the new equilibrium price with the old one.
100  101 100  101
100   100 p  (100 j  p )   p  ip
2 2
100  101  100  101 

100   100 j  99 p   i  p
2  2 
505,000  100 j
P(c* ) 
5149  j
P(c* )  P(b* )  j  50.5
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If j 50 j 51
than the world price  
consumers in other countries worse off better off
producers in other countries better off worse off
price in j  
consumers in j better off worse off
producers in j worse off better off
(d1) Yes, it is possible. To construct an example, think of a country which used

to be an exporter in the global trade and remains an exporter within a block where
equilibrium price is higher than (b) ⋆ . This country is unambiguously better off. E.g.,
in a block with countries = 1, 99, 100, country 1 will be the only exporter, and the
price will be higher than in the equilibrium without blocs.
(d2) No. Assume such a bloc exists. If the price within this bloc is equal to
(b) ⋆ , than every agent gets the same welfare. But if it is different, this bloc (all
countries in it taken together) used to be a net exporter or a net importer when the
free trade was possible. No this bloc is a closed economy, so total welfare of the block
must decrease when there is no across-bloc trade.
(d3) Most likely, it will go down, because there will be mutually beneficial
transactions between blocs. In a particular case when in all blocs equilibrium prices
turn out to be equal to ⋆(b) , the welfare will be the same (for example, if country 1
trades only with country 100, country 2 trades only with country 99, etc.).
Marking Scheme
(a) 5 points for correctly calculating the prices
(b) 3 points for calculating the world price, 2 points for identifying exporters
and importers. It is incorrect to calculate the world price as the average of all autarky
prices in the countries, because in the general case this does not lead to the correct
result.
(c) All directions are identified correctly, there is an explanation – 5 points
There is intuition of how the prices change, at least one welfare change is specified
– 4 points
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Only intuition of how the prices change, no specification of welfare changes –

3 points
Answer with correct directions of changes (all of them are present or 1-2 some
are missing), no explanation – 2 points
(d1) 5 points for an example
(d2) 5 points for correct proof
(d3) 5 points for correct explanation
If in parts (d1)–(d3) a contestant writes some general intuition on how countries
benefit or lose from forming blocs in the market, these ideas are true for the real world
but irrelevant to the model in the task, the contestant gets 1 point for a part.
Question 3. “How to Finance Government Spending” (30 raw points)

Consider a closed economy where consumption spending depends on output:
= 0 +0.8 , where 0 > 0 is autonomous consumption and is disposable
income (income after tax). The tax rate is flat at the level of 20% on all income without
double taxation. The ShortRun Aggregate Supply (SRAS) is flat at = 1. Investment
is given by = 7.5 − 4 , where is the real interest rate expressed in percentage
points (for example, = 1.12 means that interest rate is 1.12%, not 112%). The supply
of loanable funds is given by = 16 . Initially, the equilibrium level of GDP ⋆ = 100,
all demand for loanable funds comes from investment, the state budget is balanced.
The government wants to reduce unemployment and increases by 10.
(a) (10 rp) Assume that the government just has this money at its disposal, so
there is no need to borrow it or find elsewhere. How will the increase in affect GDP?
If the increase in GDP does not equal to the increase in , explain the difference.
(b) (10 rp) Now, assume that the government will finance its new spending
through collected taxes, thus adjusting the tax rate. Find the new level of GDP in
equilibrium. If it does not equal to the new level of GDP in (a), explain the difference.
(c) (10 rp) Assume that instead of raising taxes, the government will borrow
10 in the financial market, affecting the interest rate. How will this affect GDP when
the goods market and the loanable funds market are the new equilibrium? If it does
not equal the new level of GDP does not equal the new level of GDP in (a), explain
the difference.
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Solution
Please note that since the economy is closed, there are no exports or imports.
Moreover, loanable funds are not restricted to savings by consumers. That is, = 16
as given in the problem and ≠ − .
Collected taxes are = 0.2 ⋅ = 20, budget is balanced, so = 20 as well.
In the credit market, 7.5 − 4 = 16 , so ⋆ = 0.375 and = 6.
In equilibrium, output must equal demand, that is,
= + + .
Let’s plug what we know to the output equation: 100 = 0 + 0.8 ⋅ (1 − 0.2) ⋅ 100 + 6
+ 20. From this we get 0 = 10. So, the equilibrium condition is:
= 10 + 0.8 ⋅ (1 − ) ⋅ + + .
(a) In this part, = 0,2, = 30 and = 6. Plugging this into the equilibrium
equation, we obtain:
= 10 + 0.8 ⋅ 0.8 ⋅ + 6 + 30.
So, ⋆ (a) ≈ 127.28, GDP goes up by 27.78. This is greater than Δ = 10 because
of the multiplier effect.
Alternative solution: use the government spending multiplier 1/(1− (1− ))
= 1/(0.44); 10/0.44 ≈ 27.78.
(b) In this part, is unknown, = 30, = 6 and = 30. Plugging this into the
equilibrium equation, we obtain:
= 10 + 0.8 − 0.8 ⋅ 30 + 6 + 30.
So, ⋆ (b) = 110, GDP goes up by 10 compared to the initial state. This is less than
in (a) because increase in taxes has a partially offseting effect on GDP.
(c) The government enters the loanable funds market as a borrower aiming to
borrow 10, so it is now 7.5 − 4 + 10 = 16 , and = 0.875. With this rate, = 4;
also = 0.2, = 30.
Plugging this into the equation, we get:
= 10 + 0.8 ⋅ 0.8 ⋅ + 4 + 30.
So, ⋆ (c) ≈ 122.22, GDP goes up by 22.22 compared to the initial state. This is less
than in (a) because by entering the loanable funds market, the government forces the
interest rate higher, which reduces investment (this is called the crowding out effect).
Marking Scheme
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(a) 5 points for correct calculations, 5 points for explanation. For

intuition/explanation it was important to explain multiplier effect.
Correct comparison of Δ and Δ with correct calculations, but missing
explanation of the multiplier effect [7/10].
Common mistake - calculating multiplier without tax rate, which makes it 5
and leads to Δ = 50. [7/10 with correct intuition.]
(b) 5 points for correct calculations, 5 points for explanation.
For intuition/explanation needs to mention effect of taxes on disposable
income.
Common mistake - assuming that the new tax rate is 30%. It is actually too
high and leads to = 22.73 and tax collected of 36.82, which is more than 30. [8/10]
(c) 5 points for correct calculations, 5 points for explanation.
For intuition/explanation needs to explain crowding out of private investments.
Common mistake - calculate correctly effect on , i.e. reduction from 6 to 4,
but then do not account for the multiplier effect and conclude that effect on is −2.
[7/10] With an attempt to calculate an effect on through some sort of a multiplier,
but incorrect. [8/10]
Question 4. “Shadow Economy” (30 raw points)

One of the problems with the GDP indicator is its inability to account for the
production of goods and services in the underground (shadow) economy. By this we
mean not only illegal production of forbidden goods and services but also housework,
helping friends, etc. — everything that is not observable for official statistics, but
would have to be included in GDP if it were observable.
Clearly state two different approaches for estimating the size of the shadow
economy of a country. Explain why your approaches may work to achieve this goal.
Also explain why they might not work (the disadvantages).
Solution
The three approaches that are mostly used are the following.
1. Survey data; one can ask people how much they earn, or spend, or how
busy they are with housekeeping etc. and compare it with the official statistics of
income and consumption. Since people may take their unofficial activities into account
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VEO
when answering surveys, the comparison with the official statistics may to some extent
reveal the unobserved part of the economy. The main disadvantage are common for
surveys: the samples can be biased (it’s unlikely that people who are rich and heavily
engaged in tax evasion will take part), some people will refuse to respond, some of
them will respond, but will not mention their unofficial earnings in fear that they can
be investigated.
2. Using indirect (proxy) indicators of overall economic activity like electricity
consumption, percentage of cash in the money supply, etc. This can work, because
people inevitably leave ‘fingerprints’ when participate in the unofficial transactions,
and they can be traces with this proxies. On the other hand, quantifying the shadow
economy with these proxies is very difficult, so estimates can be way off.
3. Calculating GDP by definition, i.e., looking at the costs of production for
the economy. It should work because even products sold illegally and unofficially are
produced at the initial stages. The disadvantage of this approach is that we are
missing most services.
Marking Scheme
15 points for each method: 5 for identification + 5 for why it works + 5 for
disadvantages.
Question 5. “Going Green” (30 raw points)

are given by:
(are) = 150,000 − ,
(andwagon) = 40,000 − 5 + 500 N ,
where is the price of a solar panel (in USD) and is the total quantity of solar panel
users (in equilibrium, = + ). For simplicity, assume that , , and can
be non-integer.
The supply of the solar panels is perfectly elastic, = 25,000.
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(c) (10 rp) After the equilibrium from (b) is reached, the government surprisingly
eliminates the subsidy. Customers have the opportunity to return the once-purchased
solar panels and get $25,000 refunded (and indeed do this if their willingness to
pay is below 25,000 per panel). Find the new equilibrium quantity of installed solar
panels. Is your answer the same as in (a)? Why or why not?
Solution
(a) Quantity demanded by those who care is = 150,000 − 25,000 =
125,000. The number of panels to be purchased by the second group in the first
period: Qb  40,000  5  25,000  500 125,000 ≈ 91,776. With this, becomes
approximately 125,000 + 91,776 = 216,776 and should increase further: 40,000−
5⋅ 25,000+ 500 216,776 ≈ 147,796. The process will continue until the equilibrium
is reached. In equilibrium, = + , so
= 125,000 + 40,000 − 5 ⋅ 25,000 + 500 N .
One can rewrite it with x  N and get x 2  500x  40,000  0 . This is a
quadratic equation solved by x 1     

, x 2   50  5  21 , 50  5  21 . The second
one is negative; the first one will result in N  x 12  325,078. Qc  125,000 , so is

200,078, but there are only 200,000 households in this group, so actually =
200,000 and ⋆ (a) = 325,000.
(b) Now the price for consumers is 20,000, and = 150,000 − 20,000 =
130,000. There are even more consumers at the initial stage, so the ‘bandwagon’
segment will be even more willing to join, everyone there will join again. So, ⋆ (b)
= 330,000.
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VEO
(c) According to the described mechanism, those who care will adjust first and
return back to = 125,000. So, the equilibrium condition will be the same as in (a),
so as the result.
Marking Scheme
Since the questions and the results of parts are very similar, they are graded together.
• 6 points for making sure that under the calculated , is positive, so the
equilibrium condition can be applied. This should be done at least for = 25,000
(then, for the case with subsidy the result will follow).
• 10 points for specifying the equilibrium condition with all parameters
plugged in.
• 6 points for solving for equilibrium values of (2 points for each from (a),
(b), (c)).
• 3 points for noticing that is too big and correcting it to 200,000 (1 point
for each from (a), (b), (c)).
• 5 points for pointing out that the result in (c) is the same as in (a) because
nothing changed.
Comment. Because of the typo in the students’ version of the task, this question
turned out to be much simpler and less interesting than it was initially designed. This
also explains why the maximum points for parts do not reflect their difficulty. The
corrected version provided below encompasses an interesting phenomenon: the
introduction and removal of the subsidy can change things compared to the initial
state due to the bandwagon effect.
Question 5. “Going Green (corrected)” (30 raw points)

are given by:
(are) = 150,000 − 5 , (andwagon) = 40,000 − 5 + 500 N ,
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where is the price of a solar panel (in USD) and is the total quantity of
solar panel users (in equilibrium, = + ). For simplicity, assume that , ,
and can be non-integer. The supply of the solar panels is perfectly elastic, =
25,000.
(c) (10 rp) After the equilibrium from (b) is reached, the government
surprisingly eliminates the subsidy. Customers have the opportunity to return the once-
purchased solar panels and get $25,000 refunded (and indeed do this if their
willingness to pay is below 25,000 per panel). Find the new equilibrium quantity of
installed solar panels. Is your answer the same
as in (a)? Why or why not?
Solution
(a) = 150,000 − 5 ⋅ 25,000 = 25,000 solar panels purchased by the first
group. As for the second (bandwagon) group, in the first period = 40,000 − 5 ⋅
25,000 + 500 25,000 . This is negative, so, no panels will be purchased by the
second group. So, ⋆ = 25,000.
(b) The price for customers is now p  s  20,000 . Quantity demanded by
those who care isQc  150,000  5  20,000  50,000 . This allows for positive number
of panels to be purchased by the second group: =40,000−5⋅20,000 +
500√50,000 ≈ 51,803. With this, becomes approximately 50,000 + 51,803 =
101,803 and should increase further: 40,000  5  20,000  500 101,803 ≈ 99,533.
The process will continue until the equilibrium is reached.
In equilibrium, = + , so
N  50,000  40,000  5  20,000  500 N .
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VEO
One can rewrite it with x  N and get x 2  500x  10,000  0 . This is a quadratic
equation solved by x 1     
, x 2   50  5  21 , 50  5  21 . From this we get
N1 =x 12  229,564 and N 2  x 22  436 . Given the process that leads to the

equilibrium, the answer must be greater than 101,803, so we conclude that ⋆≈
229,564 (alternative explanation: cannot be equal to 436 because = 50,000
and it is a part of ).
(c) According to the described mechanism, those who care will adjust first and
return back to = 25,000. The equilibrium condition is now the following:
= 25,000 + 40,000 − 5 ⋅ 25,000 + 500√ .
One can rewrite it with x  N and get x 2  500x  60,000  0 . This is a quadratic
equation solved by x 1 , x 2  300, 200 . From this we get N 1  x 12  90,000 and
   
N 2  x 22  40,000 . Given the process that leads to the equilibrium, the answer must
be the greater one, so we conclude that ⋆ = 90,000. Even though there is no subsidy
anymore, the number is different from (a), because of the equilibrium dynamics: the
‘bandwagon’ customers immediately saw a lot of solar panels around, so they did
not want to get rid of them. So, if the government or a producer wants to make
something of this kind popular, they can firs stimulate buying it, and after some time
remove the incentive.
---THE END---
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Với mục tiêu tăng cường giáo dục kiến thức về kinh tế và tài chính cho
học sinh trong các trường Trung học trên khắp thế giới, kỳ thi Olympic Kinh
tế Quốc tế (IEO) được tổ chức lần đầu tiên tại Moscow với sự góp mặt của
64 thí sinh đến từ 13 quốc gia. Năm 2022, đã có 205 thí sinh, tương ứng với
41 đội thi đại diện cho 40 quốc gia trên thế giới tham dự kỳ thi này. Bên
cạnh các câu hỏi lý thuyết, học sinh tham dự cuộc thi còn có cơ hội phát
triển kỹ năng phân tích cũng như mở rộng kiến thức về tài chính và kinh
doanh của bản thân thông qua các tình huống mang tính thực tiễn.
VIETNAM ECONOMICS OLYMPIAD

Trung tâm phát triển bền vững chất lượng Giáo dục phổ thông Quốc gia
Viện Khoa học Giáo dục Việt Nam
Công ty TNHH Giáo dục Edmicro
Đơn vị tài trợ chính: Onluyen.vn
Hotline: 0969602660
Website: http://www.veo.edu.vn/

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VIETNAM

Lê Anh Vinh, Nguyễn Thanh Tâm (Đồng chủ biên)

TUYỂN TẬP ĐỀ THI

KINH TẾ VIỆT NAM VÀ QUỐC TẾ

TUYỂN TẬP ĐỀ THI

TUYỂN TẬP ĐỀ THI OLYMPIC KINH TẾ VIỆT NAM - VIETNAM

VIETNAM ECONOMICS OLYMPIAD (VEO) 2021

Thông tin các vòng thi

Bảng 1. Thông tin các vòng thi VEO 2021

Đề thi Vietnam Economics Olympiad – VEO 2021

Đề thi thử VEO 2021

STT Tiếng Anh Tiếng Việt (Dịch tham khảo)

b. If An increases your total free d. Cả a và b đều sai

Đề thi vòng 1 VEO 2021

STT Tiếng Anh Tiếng Việt (Dịch tham khảo)

d. Rất khó để đo lường chính xác giá

a. A medium of exchange. d. Tất cả những chức năng trên.

drop so that Hung's optimal a. 50%

demand coefficient of both giá của gói sản phẩm ấy là bao

Đề thi Vòng 2 VEO 2021

Phần thi Trắc nghiệm – Multiple Choice Question

STT Câu hỏi

Consider a market of 2 firms with similar constant marginal cost. The

Which of the following will most likely be encouraged to happen if the

d. 7.5 million VND of new money in the economy.

14 the shop so that this purchase is worthwhile?

Which of the following statements is NOT TRUE about a non-discriminating

Phần thi Tự luận/Câu hỏi mở - Open Question

Solve 4 questions out of 5.

Every open question is worth 30 points.

Numbers of firms and people may be only integer.

Question 1. “COVID-19 vaccine as a good” (30 points)

Question 2. “Some impacts of COVID-19 on the Vietnamese economy” (30 points)

a. (10 points) Affected industries

b. (10 points) Fall in the banking interest rates, compared to 2019

Question 3 (30 points)

b. (21 points) Find all Nash equilibria.

Question 4. (30 points)

a. (6 points) Calculate Schumacher’s expected utility?

b. (6 points) Now, there is one insurance company called Insurance Experts

c. (6 points) Compute the expected utility for Schumacher if he purchases the

Question 5. (30 points)

Đáp án/Hướng dẫn trả lời

Đáp án Đề thi thử VEO 2021

STT Tiếng Anh Tiếng Việt (Dịch tham khảo)

3 "Infrastructure" of a country means: "Cơ sở hạ tầng" của một quốc gia có

nhóm các chủ sử dụng lao động

6 Someone who runs a business to Một người mở công ty để sản

d. sulfur dioxide pollution

18 A startup founder participates in Một nhà doanh nghiệp tham gia

Đáp án Đề thi Vòng 1 VEO 2021

STT Tiếng Anh Tiếng Việt (Dịch tham khảo)

Đáp án Đề thi Vòng 2 VEO 2021

Phần thi Trắc nghiệm – Multiple Choice Question

STT Câu hỏi - Đáp án Hướng dẫn giải

Consider a market of 2 firms with similar When collude, each firm's

What will a corporation's stockholders lose

As soon as purchasing a car that has

b. Banks that loaned money at a fixed interest

Assume that new plastic and recyclable

d. Relative to a perfectly competitive market,

A father wants to divide 100 gold bars Apply Game Theory

The table represents market demand Q for