ÉRETTSÉGI VIZSGA 2011. május 13. KÖZGAZDASÁGI ALAPISMERETEK (ELMÉLETI GAZDASÁGTAN) ANGOL NYELVEN KÖZÉPSZINTŰ ÍRÁSBELI VIZSGA 2011. május 13. 8:00 Az írásbeli vizsga időtartama: 180 perc Pótlapok száma Tisztázati Piszkozati NEMZETI ERŐFORRÁS MINISZTÉRIUM Közgazdasági alapismeretek (elméleti gazdaságtan) középszint írásbeli vizsga 1021 angol nyelven
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 up diagrams, the final solution, however; has to be finalized with 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 1021 2 / 16 2011. május 13.
I. Test questions Multiple choice questions (10 x 2 = 20 points) We have provided four possible answers that correctly complete the statements in the questions, 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. The intersection point of the demand and supply functions shows on the product s market. a) the equilibrium price b) the current market price c) the disposable income d) unsaleable goods in stock 2. The principle of diminishing marginal utility expresses that after another product is consumed a) total utility decreases. b) marginal utility decreases. c) total utility is lower than marginal utility. d) marginal utility is negative. 3. When we say a product is a normal good, then a) its price elasticity has a negative sign. b) its income elasticity has a positive sign and is lower than 1. c) its cross-price elasticity has a positive sign. d) None of the above. 4. If a competing company is producing at the break-even point, then a) it is achieving economic profit. b) it is producing losses. c) it has to immediately close down the plant due to losses. d) it is only achieving normal profit. 5. In case of positive externality, the quantity of socially optimal production compared to the quantity determined by the market is a) more. b) less. c) the same. d) can be more as well as less. írásbeli vizsga 1021 3 / 16 2011. május 13.
6. Which correlation describes the equation of the savings function? a) S(Y) = C(Y) + I b) S(Y) = - C 0 + ĉy c) S(Y) = - C 0 + (1-ĉ)Y d) S(Y) = C 0 (1-ĉ)Y 7. In the SNA system, the national-type indicator means that this income a) has been produced within the given country. b) has been produced by the citizens of the given country. c) has been produced by domestically owned companies that operate within the country. d) is income redistributed by the state among citizens. 8. Active population a) is population that is able to work, is present on the labour market and is willing to take jobs. b) is the part of the population that is unwilling to take jobs. c) is the totality of the unemployed. d) is the workforce employed in the national economy. 9. Budgetary policy contains those measures which a) change the revenues or expenditures of the budget. b) directly or indirectly affect commodity market demand. c) impact the deficit of the budget. d) All of the above answers are correct. e) None of the above answers are correct. 10. Which of the following is not part of the balance of payments? a) Financial account balance. b) Balance of errors and omissions. c) The balance of savings. d) The current balance of payments. írásbeli vizsga 1021 4 / 16 2011. május 13.
1. True/false questions (6 x 2 = 1) II. Written (elaborative) questions 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 or crossed out letters will not be accepted. ATTENTION! ALL ANSWERS HAVE TO BE EXPLAINED! All correct explanations are worth 1 point. 1) If the supply function shifts to the right on a product s market, then the new market equilibrium could be established at a price lower than the current price. 2) A perfectly competing company can only produce losses if market price is lower than the minimum of average cost. 3) The economic rent of land will probably rise if the market price of the product produced on it increases. 4) Savings of a foreign country are positive if the export of goods and services exceed import in the examined country. 5) The minimum of the employed workforce in the national economy is the same as the equilibrium workforce of the labour market, because the employed workforce appears on both the demand and the supply side of the labour market. 6) Increasing nominal monetary stock cannot cause inflation, because increasing money supply is not accompanied by the increase of commodity market demand. írásbeli vizsga 1021 5 / 16 2011. május 13.
2. Definitions (4 x 2 = 8 points) Define the following concepts and economic phenomena briefly. A) Gossen s 1 st law: B) Externality: C) Transfer: D) Marginal propensity to consume: írásbeli vizsga 1021 6 / 16 2011. május 13.
3. Elaborative question (8 points) Write down your answer, in which you name or list and explain the most important correlations in detail. Make sure your answer is clear, easy to understand, and structured according to content. Structure your answers in a way that corresponds to your main thoughts. If necessary, you may write down formulas or make diagrams. From the point of view of a perfectly competing company, explain the relationship of total revenue and marginal revenue with market price. Examine the development of total profit with a random price in the light of total revenue and total cost. Prepare a diagram, and describe the procession of the total profit function. Using a diagram, determine the quantity of production that ensures maximum profit. írásbeli vizsga 1021 7 / 16 2011. május 13.
4. Complete the missing data (5 x 1 = 5 points) The following question requires you to apply the principles determined for the calculation of SNA indicators, and with their help to complete the incomplete sentences below. Determine how the various indicators change as the result of the events indicated and complete the statements regarding the performance of the national economy with the phrases INCREASES, DECREASES or REMAINS UNCHANGED. (During the solution of the question consider all other conditions and circumstances unchanged) 4.1. Suppose that the amount of primary income arriving from abroad is greater than the primary income transferred out. From this we can deduce that the GDP 4.2. Suppose that the amount of primary income arriving from abroad is greater than the primary income transferred out. From this we can deduce that the GNI 4.3. Suppose that with unchanged gross output intermediate consumption decreases. Therefore, the value of the GDP. 4.4. Suppose that with unchanged national income the citizen s of the country send more transfers abroad. Therefore, the value of the GDP. 4.5. Suppose that with unchanged national income the citizen s of the country send more transfers abroad. As a result, the value of the GNDI írásbeli vizsga 1021 8 / 16 2011. május 13.
5. Analysis, evaluation question (7 points) Compare the situation of market baskets shown in the diagram based on their position in relation to the indifference curve and the budget line, and decide whether the statements below are true or false. The diagram blow shows two indifference curves and two budget lines. The diagram illustrates that the consumer s budget line was modified from I 1 to I 2. Market baskets A and B belong to the point of tangency of the indifference curve and the budget line, while all the other highlighted market baskets (E, F, K, L, and M) are situated in market basket intersection points. Number Statement True-false Example There is no blue-berry in market basket L false 5.1. In the initial position, the consumer s optimal choice was market basket B. 5.2. Market basket M is the most expensive. 5.3. 5.4. 5.5. 5.6. Market basket E has greater utility than market basket F. You have to pay more for market basket E than market basket L. Market basket E has equal cost, but lower utility than market basket B. The modification of the budget line shows that the consumer s nominal income has increased. Explain your answer for Question 5.6. írásbeli vizsga 1021 9 / 16 2011. május 13.
III. Calculation and plotting questions Question 6 (10 points) The available resource combinations to manufacture an aeroplane are the following: Procedure A B C D Capital (K) 2 4 5 8 Labour (L) 100 84 90 50 The price of one unit of capital is HUF 40 000, while one unit of labour is HUF 5 000. 6.1. Of the procedures listed, select those you think are technically efficient. Explain your answer. 6.2. Of the procedures listed, select the one you think is economically efficient. Support your answer with calculations. 6.3. Suppose the price of capital increases by 20 percent, while the price of labour stays the same. With the new factor prices, which procedure will be the one that is economically efficient? Support your answer with calculations. 6.4. Compare the results you have reached in questions 2 and 3 and characterise the joint changes of the factors. Explain why the price change resulted in such changes in the selection of technology. írásbeli vizsga 1021 10 / 16 2011. május 13.
Question 7 (10 points) Suppose that under identical demand and cost conditions, an industry can function both as a competitive market and a monopoly. The market demand function is Q = 250 P. The cost functions of the companies operating within the industry are identical, and we are aware of its form as AC = MC = 50. 7.1. Suppose that within an industry, the conditions of perfect competition prevail. Calculate the size of industry output (Q tv ), price (P tv ) and consumer surplus (CS). 7.2. Calculate what the industry output (Q m ) if the industry becomes a monopoly due to market changes. Calculate the price determined by the monopoly (P m ), if the marginal revenue function of the monopoly is MR = 250 2Q! 7.3. Calculate the profit of the monopoly and the size of consumer surplus. 7.4. On the diagram below, illustrate the area showing the deadweight loss caused by the monopoly. P 300 250 200 150 100 50 0 0 50 100 150 200 250 300 Q írásbeli vizsga 1021 11 / 16 2011. május 13.
continuation of the solution of the previous question írásbeli vizsga 1021 12 / 16 2011. május 13.
Question 8 (7 points) In a three-player macro-economic model, we know the size of the following income flows as expressed in a given unit of measurement: total income (Y) 5040, consumption (C) 3200, wages paid (W) 3600, investments (I) 640, corporate savings (S V ) 340, state savings (S A ) 160, corporate tax (T V ) 1100, household (T H ) 560. 8.1. Enter the items above into the current items accounts of income flow. 8.2. Calculate the size of government purchases (G), household savings (S H ) and household transfer (TR H ). írásbeli vizsga 1021 13 / 16 2011. május 13.
Question 9 (13 points) The following correlations are in force in a two-player economic model: S(Y) = 0.2Y 2 800, I(i) = 3 000 40i, furthermore M D = 0.6Y 800 i, M S = 14 400 and P = 4. 9.1. Calculate the income ensuring the equilibrium of the commodity market if the interest rate is i = 10%. (The value of i is equal to the value of the rate percentage, therefore in the case of 1% the value of i = 1.) 9.2. Describe the situation of the money market with the given interest rate and equilibrium income. 9.3. Calculate the interest rate and income required to ensure the joint equilibrium of the commodity and money markets. 9.4. Suppose that changes have occurred in the economy - primarily due to monetary intervention that have altered money market factors. This caused real money supply to drop to three quarters of its previous level. Calculate the interest rate ensuring the new money market equilibrium if equilibrium income stays the same. írásbeli vizsga 1021 14 / 16 2011. május 13.
continuation of the solution of the previous question írásbeli vizsga 1021 15 / 16 2011. május 13.
Topic Test questions Written (elaborative) questions Calculation and plotting questions Question number Maximum points Scored Maximum points of topic Multiple choice questions 1 10. 20 20 1. True/false questions 12 2. Definitions 8 3. Elaborative question 8 4. Complete the missing 40 data 5 5. Analysis, evaluation question 7 Question 6 10 Question 7 10 Question 8 7 Question 9 13 40 in written examination 100 in topic Correcting teacher Date:... Választásos, egyszerű rövid választ igénylő feladatok/test questions Szöveges(kifejtendő) feladatok/ Written (elaborative) questions Számítást, ábrázolást igénylő feladatok/ Calculation and plotting questions pontszáma egész számra kerekítve/points rounded to a whole number programba beírt egész pontszám/ points (whole number) entered into programme javító tanár/correcting teacher jegyző/notary Dátum/Date:... Dátum/Date:... írásbeli vizsga 1021 16 / 16 2011. május 13.