ÉRETTSÉGI VIZSGA 2015. május 19. KÖZGAZDASÁGI ALAPISMERETEK (ELMÉLETI GAZDASÁGTAN) ANGOL NYELVEN KÖZÉPSZINTŰ ÍRÁSBELI VIZSGA 2015. május 19. 8:00 Az írásbeli vizsga időtartama: 180 perc Pótlapok száma Tisztázati Piszkozati EMBERI ERŐFORRÁSOK MINISZTÉRIUMA Közgazdasági alapismeretek (elméleti gazdaságtan) angol nyelven középszint írásbeli vizsga 1511
Important Information The test sheet is complex, broken down into sections according to the different types of questions. When working out the solution, please take into account the additional information in italic font. Please follow the instructions when answering the questions. Maximum score will only be given, if all subsections of the question have been answered. Solutions and elaborations should be written on the test sheet. All drafts should be written on the additional pages provided. If the answer requires additional pages, please indicate this next to the relevant question. Pencils may be used to draw diagrams, the final solution, however; has to be finalised in pen. Please use a ruler to draw precise diagrams. You may only use non-programmable calculators during the written examination. Good luck with your examination! írásbeli vizsga 1511 2 / 16 2015. május 19.
Test Questions Multiple choice questions (10 2 =20 points) We have provided 4 possible answers that correctly complete the statements below, but only one of these answers is correct. The other answers are either partially correct or completely wrong. Choose the letter corresponding to the correct answer and write it into the table below, into the field corresponding to the given question number. Attention! Only one answer will be accepted. No points will be awarded for multiple or unclear answers. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 1. Customers will buy more apples if a) their income increases. b) if they see that eating apples is healthy. c) the price of apples drops. d) Any of the above events increases buying intention. 2. Let s assume that the price elasticity of a given good has a negative sign. Based on this, we can state that a) this good is a normal good. b) if the price of this good increases, consumers will buy less. c) the law of demand does not apply to this good. d) the demand of this good is inelastic. 3. Consumers who... get consumer surplus. a) purchase inferior goods b) do not buy products produced by a monopoly c) have purchased the product at market price, but would have been willing to pay more for it d) None of the above statements is correct. 4. The profit of a perfectly competitive company can be maximal in case of a random price if the following condition holds true: a) AC = MC b) MR = MC c) P = MR d) AC = AVC. 5. In case of external effect, the difference between individual and social evaluation may be decreased through a) mutual agreement. b) legal regulation. c) taxes and fines. d) all three of the above procedures. írásbeli vizsga 1511 3 / 16 2015. május 19.
6. In macro-economics, the commodity market is made up of the following elements: a) the market of consumer goods and the market of capital goods. b) the food market and the real estate market. c) the capital market and the labour market. d) the market of final goods and the market of production factors. 7. Due to the improvement of profit expectations (ceteris paribus), investment demand a) increases. b) decreases. c) does not change. d) cannot be determined. 8. The sloping of the consumption function shows a) what percentage of income the economy spends on consumption. b) the size of investment belonging to given consumption in the economy. c) how much consumption increases due to a one unit increase of income. d) how much investment drops due to a one unit increase of consumption. 9. Real wage increases if a) the price level remains unchanged and nominal wage increases. b) nominal wage remains unchanged and the price level decreases. c) the price level increases and nominal wages increase at a greater rate than this. d) Real wage will increase in all three cases. 10. The government intervention that may be applied to decrease inflation is a) to increase G. b) to decrease tax. c) Both. d) Neither. írásbeli vizsga 1511 4 / 16 2015. május 19.
Written (long-answer) questions 1. True-false statements (1) Decide whether the statements below are true or false. Please indicate your decision by writing the letters T (true) or F (false) in front of the statements. Unclear markings will not be accepted. ATTENTION! ALL ANSWERS HAVE TO BE EXPLAINED. All correct explanations are worth 1 point. 1) The law of demand stipulates that if income increases, so does demand. 2) The production function is maximal at the labour quantity where the marginal product of labour is equal to the average product of labour. 3) If the market price of an asset increases, its present value drops. 4) Disposable income is decreased by the tax payable, and increased by the grant received. 5) Involuntary unemployment appears if the current real wage level in the economy is lower than equilibrium real wage. 6) In case of a fixed currency exchange rate, the central bank is entitled to change the nominal exchange rate of domestic currency. írásbeli vizsga 1511 5 / 16 2015. május 19.
2. Definitions (8 points) Briefly define or interpret the terms and economic phenomena listed. A) Demand B) Quantity demanded C) Oversupply D) Marshallian cross írásbeli vizsga 1511 6 / 16 2015. május 19.
3. Long-answer question (8 points) Write a written answer which names or lists and presents in detail the main correlations. During your work, try to present your answer in a well-structured and comprehensible manner. Divide up, group or highlight your main thoughts according to the nature of your answer. If necessary, you may write down formulas or prepare diagrams. Define the concept of money supply. Distinguish between cash and deposit money based on physical appearance and issuing. Explain the role of the central bank in regulating money supply in a two-tier banking system, and list the tools at its disposal to do this. írásbeli vizsga 1511 7 / 16 2015. május 19.
4. Pairing up (6 points) Pair the markings on the diagram to the categories given. Write the name of the correct element or the number of the diagram into the space provided. The diagram below shows three cost functions of a perfectly competitive company: AVC, AC and MC. We have selected 3 possible market prices so that all three lines corresponding to the given price level determine a relevant point. These relevant points correspond to supplied quantities A, B and C. 4.1. Identify the relevant points. Next to the letter of the given quantity supplied, write one of the POSSIBLE ANSWERS below. POSSIBLE ANSWERS: zero income minimal marginal cost maximal total cost maximal profit break-even point loss minimisation maximal revenue shutdown point A:.. B: C: 4.2. We have marked certain rectangular areas on the diagram, but due to overlaps, we will be illustrating these on separate diagrams. Each numbered diagram shows a rectangular area reflecting the total revenue of a competitive company, however, these are valid for different market situations. The diagrams also show what the components of total revenue are. Pair the diagrams with their corresponding correlation. Write the number of the diagram under the correlation selected. írásbeli vizsga 1511 8 / 16 2015. május 19.
Diagram 1 Diagram 2 Diagram 3 Correlation TR=TC TR=VC TR=TC+Tπ Diagram number írásbeli vizsga 1511 9 / 16 2015. május 19.
5. Analysis and evaluation question (6 points) The table below shows the productivity data for two member countries of an international servicing network. Activity Productivity indicator (pcs/hour) Country A Country B Repair 3 2 Assembly 2 1 5.1. Determine which country has absolute advantage with respect to repair. Circle the correct letter and provide a brief explanation. Explanation: Country A Country B 5.2. Determine which country has comparative advantage in which activity. Write the letter of the given country next to the activity. Repair: Assembly: 5.3. Explain your answer. Circle or underline the correct answer(s) of the following. A) Country A has comparative advantage with respect to repair, as its absolute advantage is lower with respect to this activity. B) Country B has comparative advantage with respect to repair, as the opportunity cost of repair is lower in this country. C) Country A has comparative advantage with respect to assembly, as its absolute advantage is greater with respect to this activity. D) Country B has comparative advantage with respect to assembly, as its absolute disadvantage is greater with respect to this activity. 5.4. Let s assume that based on comparative advantages, division of labour is realised between the two countries, with one doing repair and the other doing assembly. Which country specialises in assembly? Circle the appropriate letter. Country A Country B írásbeli vizsga 1511 10 / 16 2015. május 19.
Calculation and Plotting Questions In the case of calculation questions, follow the instructions indicated for each sub-question carefully: complete the necessary calculations or prepare the diagrams according to the given specifications and indicate the letter of the corresponding sub-question next to your solution. In order to get maximum points, you will have to answer all subsections of the question. Question 6 (10 points) Based on utility, a given consumer has grouped the various combinations of goods in the manner shown in the table. U 1 =100 U 2 =200 U 3 =400 good x good y good x good y good x good y 1 18 3 16 6 19 2 10 4 10 7 15 3 7 6 7 8 13 4 5 8 5 10 10 7 2 11 3 14 7 6.1. Illustrate the indifference curves in the coordinate system provided. good y 25 20 15 10 5 0 0 2 4 6 8 10 12 14 16 18 20 22 good x írásbeli vizsga 1511 11 / 16 2015. május 19.
6.2. Assume that P x = HUF 1000 and P y = HUF 400, and the income spent by the consumer on the two goods is HUF 8000. Write down the equation for the budget line and illustrate it in the coordinate system above. 6.3. Using a graphic procedure, determine the optimal consumer basket among the combinations of goods shown in the table. Indicate this on the diagram as Point A. 6.4. The price of good x drops to HUF 400, while the consumer s income and the price of good y remains unchanged. Draw the new budget line, and mark the new optimal consumer basket as Point B. Based on the consumer s optimal choices, complete the following table. Name of good x is of good y is If P x = 1000, the quantity purchased If P x = 400, the quantity purchased 6.5. Based on the data calculated, characterise the price elasticity of good x. Calculate the indicator and assess the result. írásbeli vizsga 1511 12 / 16 2015. május 19.
Question 7 (10 points) Let s assume that a given industry, under identical demand and cost conditions, is able to function as both a competitive market and a monopoly. The market demand function can be expressed with the correlation P = 2500 1.25Q. The cost functions of the companies operating in the industry are identical, namely the correlation AC = MC = 150 holds true. 7.1. Let s assume that the conditions of perfect competition prevail in the economy. Calculate industry output (Q pc ) and price (P pc )! (When providing your answer, please use the indications given in the brackets above.) 7.2. Calculate industry output (Q m ) if, due to market changes, the industry becomes a monopoly. Calculate the price determined by the monopoly (P m ), if the monopoly s marginal revenue function is MR = 2500 2.5Q. (When providing your answer, please use the indications given in the brackets above.) 7.3. Using the indications provided, write down the formula for calculating deadweight loss. Calculate the deadweight loss caused by the monopoly. írásbeli vizsga 1511 13 / 16 2015. május 19.
Question 8 (10 points) The following data is known of a country s national economy performance: Gross output 6 870 000 Net domestic product 2 840 000 Depreciation 1 140 000 Profit of capital investment working abroad transferred home 180 000 Profit of foreign capital investment working in the country transferred abroad 966 100 Wage of workers working abroad transferred home 510 000 Wage of foreign workers working in the country transferred abroad 70 000 Aid provided by the state to disaster-stricken countries 90 000 Incoming social aid by a foreign state 425 100 Based on the above data, calculate the following data. 8.1. Gross domestic product 8.2. Balance of primary income flow 8.3. Total primary income generated domestically 8.4. Gross national income 8.5. Gross national disposable income írásbeli vizsga 1511 14 / 16 2015. május 19.
Question 9 (10 points) We are examining the two-player model of a macro-economy. The following is known of the model in question: consumption changes as a function of income, and the consumption function is linear investment changes as a function of the interest rate, and the correlation of investment and the interest rate is expressed by the following function: I(i) = 400 6i. (The value of i in the function is equal to the interest rate, therefore, in the case of a 10% interest rate, i = 10.) 9.1. All lines from the table below are culled from data series which allow for commodity market equilibrium. Calculated the missing data and fill in the table. Y C I i 3216 2912 3020 340 3120 20 9.2. Calculate autonomous consumption and marginal propensity to consume, then write up the equation for the consumption function. 9.3. Let s assume that the value of the interest rate in the economy is currently 20 percent. Calculate the price level where there is equilibrium on the money market as well, if we know the following data: the money demand function is: M D = Y 480 12i the quantity of money in circulation is M S = 6000 írásbeli vizsga 1511 15 / 16 2015. május 19.
Topic Test Questions Written (long-answer) questions Calculation and Plotting Questions Question number Maximum points Maximum points of topic Multiple choice questions 1 10 20 20 1. True-false statements 12 2. Definitions 8 3. Long-answer question 8 4. Pairing up 6 40 5. Analysis and evaluation question 6 Question 6 10 Question 7 10 Question 8 10 Question 9 10 40 in written examination 100 in topic Correcting teacher Date:... Test Questions/ Választásos, egyszerű rövid választ igénylő feladatok Written (long-answer) questions/ Szöveges (kifejtendő) feladatok Calculation and Plotting Questions/ Számítást, ábrázolást igénylő feladatok rounded to a whole number/ pontszáma egész számra kerekítve (whole number) entered into programme/ programba beírt egész pontszám Correcting teacher/javító tanár Notary/Jegyző Date/Dátum:... Date/Dátum:... írásbeli vizsga 1511 16 / 16 2015. május 19.