Download “Economics” Section (100 points)

ADMISSION TEST 2012
ECONOMICS SECTION (TOTAL POINTS 100)
1.
STUDENT NAME_____________________________
(6 points)
Fiscal policy refers to
A) the techniques used by a business firm to reduce its tax liability.
B) the behavior of the nation's central bank regarding the nation's money supply.
C) the spending and taxing policies used by the government to influence the economy.
D) the government's ability to regulate a firm's behavior in the financial markets.
Table 1
2.
(6 points)
Refer to Table 9.1. At an output level of $1,200 billion, the level of aggregate expenditure is
A) $1,000 billion.
B) $1,200 billion.
C) $1,300 billion.
D) $1,400 billion.
3.
(5 points)
Michael Dell was the first individual who sold computers by mail order. The company founded by
Dell is now one of the largest and most successful computer companies in the United States.
Michael Dell would be classified as a(n)
A) entrepreneur.
B) opportunist.
C) monopolist.
D) socialist.
4.
(5 points)
Among the factors of production are
A) capital.
B) wages.
C) income.
D) all of the above
Figure 1
5.
(6 points)
Refer to Figure 1. Assume the market is initially at Point B and that pizza is a normal good. A
decrease in income would cause the market to move from Point B on demand curve D2 to
A) demand curve D1.
B) demand curve D3.
C) Point A on demand curve D2.
D) Point C on demand curve D2.
Figure 2
6.
(5 points)
Refer to Figure 2. The slope of the line between Points A and B is ___________
7.
(5 points)
An increase in the overall price level is known as
A) deflation.
B) recession.
C) inflation.
D) stagflation.
8.
9.
(5 points)
If a country has a population of 400 million, 160 million people employed and 40 million people
looking for work, then its unemployment rate is ___________.
(10 points)
a) Suppose that 50 units of a good are demanded at a price of $1 per unit. A reduction in price to $0.20
results in an increase in quantity demanded to 70 units. The price elasticity of is equal to _________.
b) By what percentage would a 10 percent rise in the price reduce the quantity demanded, assuming price
elasticity remains constant along the demand curve?
10.
11.
(5 points)
Which of the following chances has the biggest expected return
A) a 60% chance of winning $2,400 and a 40% chance of winning $0.
B) a 100% chance of getting $1,200.
C) a 50% chance of winning $1,200, 20% chance of winning $2,400 and a 30% chance of losing
$2,400.
D) All of the above have the same expected return.
Figure 3
(5 points)
Refer to Figure 3. Between times t3 and t4, labor is
A) more productive because growth in employment exceeds growth in output.
B) more productive because growth in employment is less than growth in output.
C) less productive because growth in employment exceeds growth in output.
D) less productive because growth in employment is less than growth in output.
12.
(6 points)
The aggregate production function is Y = 2K0.5L0.5. If there are 225 units of capital and 196 units
of labor, aggregate output is __________.
13.
(5 points)
If the price of a car in the United States is $22,000, and the exchange rate between the dollar and the
Armenian Dram (AMD) falls from 392 AMD to 350 AMD per dollar, then the price of the
American car in Armenia will
A) fall.
B) rise.
C) remain the same.
D) be irrelevant, because the Armenian government will impose restrictions on imports from the
United States.
14.
(5 points)
If the GDP deflator is greater than 100, then
A) nominal GDP is greater than real GDP.
B) nominal GDP is lower than real GDP.
C) nominal GDP equals real GDP.
D) prices decreased by more than half between the current and the base years.
15.
(6 points)
In January 01, 2011, Gevorg put a certain sum of money as a one-year deposit at the Ameria Bank with
25 percent annual interest rate. In January 01, 2012, he received $1,000 from the bank. How much
money did Gevorg deposit?
16.
(5 points)
Total Cost (TC) of a product is comprised of various components. Which of the following options
describes TC most accurately?
A) Total Fixed Cost + Total Variable Cost
B) Average Fixed Cost + Average Variable Cost
C) Total Fixed Cost + Total Variable Cost + Total Marginal Cost
D) Marginal Cost – Marginal Revenue
MATH SECTION (TOTAL POINTS 100)
STUDENT NAME ___________________________
1. If the normal price of a macbook in one store is $ 900 and on sale it is at 2 for $ 1 500, how much can you save
by purchasing 10 macbooks at sale price?
A. $ 500
B. 1 000
C. 1 500
D. 1 800
E. None of these
2. If the object is moving on a three-dimensional (»é³ã³÷) space from the origin (ëϽµÝ³Ï»ï) to the point (4,0,3)
what will be the distance travelled?
A. 1
B. 2.5
C. 3
D. 4
E. 5
3. What is the equation of the line parallel to y=2x+1 and passing through the point (1.2)?
A. y = 2x
B. y = 2x+2
C. y = 0.5x-1
D. y = 0.5x+1
E. None of these
4. If a number x is defined as |3-2x|>15, then which of the following best represents the solution of x.
A. -6<x<9
B. -9<x<6
C. (-∞,-6)U(9,∞)
D. (-∞,-9)U(6,∞)
E. None of these
5. What is the derivative (³Í³ÝóÛ³É) of y =(3-x)1/2?
A. -0.5(3-x)-0.5
B. 0.5(3-x)-0.5
C. 0.5(3-x)0.5
D. -(3-x)-0.5
E. (3-x)-0.5
6. The graph of the function y = lnx is
A. Decreasing and has no intersection points with axis
B. Increasing and has no intersection points with axis
C. Decreasing and (1,0) is the point of intersection with axis
D. Increasing and (1,0) is the point of intersection with axis
E. Increasing and (0,1) is the point of intersection with axis
7. The object is moving according to the function S(t) = 3t2+2, where S is the distance traveled and t is time. What
is the velocity (³ñ³·áõÃÛáõÝ) of the object?
A. 6t
B. 3
C. 3t
D. 2
E. 9t+1
8. In right triangle shown below, what is the value of α?
α
4
3
A. ctg (5/4)
B. tg(4/5)
C. cos(4/5)
D. sin(4/5)
E. tg(5/4)
9. Suppose (1, m, p, q, 9) is an arithmetic (Ãí³µ³Ý³Ï³Ý åñá·ñ»ëdz) sequence. What is the value of q?
A. 2
B. 3
C. 4
D. 7
E. 8
10. Suppose you deposit $1200 into a bank account giving 10% interest per year. If you decide to withdraw the
amount after 2 years, how much would be in your account by that time?
A. 1452
B. 1420
C. 1320
D. 1240
E. None of these
ENGLISH SECTION (TOTAL POINTS 100)
STUDENT NAME ______________________________
READING COMPREHENSION (30 points)
PASSAGE 1: What Methods Do Andean Farmers Use?
Public debate around climate change and its effects on agriculture tends to focus on the large-scale industrial farms of
the North. Farmers who work on a small scale and use traditional methods have largely been ignored. However, as the
world slowly comes to terms with the threat of climate change, Native farming traditions will warrant greater attention.
In the industrial model of agriculture, one or two crop varieties are grown over vast areas. Instead of trying to use local
resources of soil and water optimally and sustainably, the natural environment is all but ignored and uniform growing
conditions are fabricated through large-scale irrigation and the intensive use of artificial fertilizers and pesticides. For
example, a handful of basically similar potato varieties, all of which require nearly identical soil conditions,
temperature, rainfall, and growing seasons, account for almost all global production. When these global crops are no
longer suited to the environment in which they are grown, when their resistance to disease and pests begins to fail, or
the climate itself changes, the best way to rejuvenate the breeding stock will be to introduce new genetic material from
the vast diversity of crop varieties still maintained by indigenous peoples.
In contrast to the industrial model, Andean potatoes and other Andean crops such as squash and beans grown by
Quechuan farmers exhibit extraordinary genetic diversity, driven by the need to adapt crops to the extraordinary
climatic diversity of the region. Along the two axes of latitude and altitude, the Andes encompasses fully two-thirds of
all possible combinations of climate and geography found on Earth. The Andean potato has been adapted to every
environment except the depth of the rainforest or the frozen peaks of the mountains. Today, facing the likelihood of
major disruptions to the climatic conditions for agriculture worldwide, indigenous farmers provide a dramatic example
of crop adaptation in an increasingly extreme environment. More importantly, Native farmers have also safeguarded the
crop diversity essential for the future adaptations.
Answer these questions for Passage 1 (clearly circle the letter for the best answer):
1. What is the main idea of the first paragraph?
A. Attention to Native farming practices will lead to greater awareness of the threat of climate change.
B. Popularity of small-scale farming in the North will lead to greater attention to Native farming practices.
C. Global demand for food will lead to increasing efficiency of large-scale farming in the North.
D. It will be worthwhile to include a greater focus on Native farming practices in public discussions concerning the
threat of climate change.
E. Despite potential climate change, public debate will have little effect on industrial farming practices.
2. In the second paragraph, the information about potato-growing practices in the industrial model of
agriculture serves to:
A. give an example of a potential problem that Native farming practices could help to alleviate.
B. show the likely global consequences of a possible food shortage caused by industrial farming practices.
C. show how pests and disease are less effectively resisted by crops grown in the industrial farming model.
D. give an example of how public debate has had little effect on the agricultural practices of the North.
E. give an example of how Native farming practices and industrial farming practices derive from different climatic
conditions.
3. The passage states that which of the following is true of the small number of potato varieties that account for
most of the potatoes produced on Earth currently?
A. They are grown in the Andean region.
B. They all require very similar soil and climate conditions.
C. They are no longer suited to their environment.
D. They are based on genetic material from crops developed by indigenous peoples.
E. They make optimal use of available soil and water resources.
4. As it is used in the passage, the underlined word fabricated most nearly means:
A. woven.
B. falsely stated.
C. fully clothed.
D. manufactured.
E. unwrapped.
PASSAGE 2: Funding the “Climate-Change Denial Machine”
An oil conglomerate has allegedly spent nearly $25 million on campaigns to discredit climate change and clean energy
policies, according to a new report.
Koch Industries, which is owned and run by two Kansas-based brothers and has substantial oil and chemicals interests,
spent the sum between 2005 and 2008 to finance "organizations of the 'climate denial machine'," claims the
environmental campaign group Greenpeace.
Despite the relatively small size of the conglomerate, the sum is three times that spent by ExxonMobil, the western
world's biggest oil company, in the same period.
According to Greenpeace, Koch foundations had provided substantial funding to at least 20 organizations involved in
highlighting "Climategate", the controversy surrounding climate scientists that was prompted by emails hacked from the
University of East Anglia.
A recent survey found that 73 percent of Americans believe global warming is happening, but only 18 percent believed
strongly it was man-made and harmful.
The brothers share 24th place in Forbes magazine's latest list of the world's richest people, controlling America's
second-biggest private company from their base in Wichita.
In all, their more than 20 companies employ 70,000 people in 60 countries and earn $100 billion in annual sales.
Answer these questions for Passage 2 (clearly circle the letter for the best answer):
1. How many Americans believe that climate change is "man-made" or "harmful"?
A. 73%
B. 27%
C. Less than 20%
2. According to the article, how much did ExxonMobil spend on campaigns to discredit climate change and clean
energy policies, compared to Koch Industries?
A. About three times more
B. About three times less
C. About two times more
3. Koch Industries is based out of _________________.
A. Wichita, Kansas
B. The University of East Anglia
C. 60 countries
4. Which of the following is NOT true of Koch Industries?
A. It has substantial oil and chemicals interests.
B. It is run by three brothers.
C. It employs about 70,000 people worldwide.
5. Who is making these allegations against Koch Industries?
A. The University of East Anglia
B. Forbes magazine
C. Greenpeace
6. The organization making these allegations implies what about Koch Industries?
A. Scientists have important emails, thus they know more than the American public about climate change.
B. This is the normal way for oil and chemical companies to do business in America because someone needs to fund
scientists who want to give their own opinions.
C. There is a conflict of interest between where the money comes from that is given to some scientists who say there is
no man-made problem with the environment.
GRAMMAR (20 points): Clearly circle the answer letter for the best answer
1. Many species of wildlife are becoming extinct, __________ the rainforests are being destroyed.
a)
b)
therefore
since
c)
so
d)
consequently
2. __________ logging provides jobs and profits, the government is reluctant to control it.
a)
So
b)
Consequently
c)
Due to
d)
Since
3. Hemp was grown throughout history __________ its versatility; it can be used to make many different things.
a)
due to
b)
because
c)
since
d)
as a result
4. If she ___________ about his financial situation, she would have helped him out.
a)
knew
b)
had been knowing
c)
d)
had known
have known
5. Would you slow down a bit, please? I can't _________ you.
a)
b)
keep up with
put up with
c)
make up to
d)
hold on to
6. _____ at the door before entering please.
a)
Knocked
b)
To knock
c)
d)
Knocking
Knock
7. The men will have to wait all day ______ the doctor works faster.
a)
if
b)
unless
c)
whether
d)
that
8. Mr. Smith, there’s a man at _____ front door who says he has_______news for you of great importance.
a)
the…---
b)
the…the
c)
d)
---…-----…the
9. John said he’d been working in the office for an hour, _______ was true.
a)
b)
he
how it
c)
which
d)
who said it
10. Hundreds of jobs______ if the factory closes.
a)
lose
b)
will be lost
c)
are lost
d)
will lost
11. If this dictionary is not yours, _______ can it be?
a) what else
b)
who else
c)
which else's
d)
who else's
12. Did you remember to give Mary the money you owed her? Yes, I gave it to her _______ I saw her.
a)
b)
while
the moment
c)
suddenly
d)
once
13. I’ve won a holiday for two to Batumi. I _______ my mum.
a)
am taking
b)
have taken
c)
d)
take
will have taken
14. Why haven’t you bought any butter? I _______ to, but I forgot about it.
a)
liked
b)
wished
c)
meant
d)
expected
15. _________________ gone to the Black Sea? Yes, I just came back actually.
a)
Did you ever
b)
Have you ever
c)
d)
Will you ever
When you ever
16. I'll ______________ their cat while they are away on vacation in August.
a) be looking into
b) be looking at
c) be looking after
d)
be looking over
17. By the time she arrives, we ________________ our homework.
a) finish
b)
will have finished
c)
will finish
d)
were finished
18. When I stopped __________ to Mary, she was picking some flowers in her garden.
a) speaking
b) speak
c) to speak
d) spoke
19. That room _______________ for a meeting today.
a)
b)
is used
is being used
c)
used
d)
is using
20. I think San Francisco is ____ exciting ____ New York.
a)
as ... as
b)
so ... than
c)
d)
as ... than
so ... as
VOCABULARY (20 points): Clearly circle the answer letter for the best answer
1. Poor management brought the company to the _____ of collapse.
a)
brink
b)
brim
c)
rim
2. I didn’t _____ to cause a problem, but unfortunately that’s what happened.
a) take on
b) set out
c)
get off
3. Sales have increased for three years _________________. = Sales have increased for three years in a row.
a) even
b) straight
c) forward
4. You have to market these particular attributes. = You have to market these particular _________________.
a) qualifiers
b)
qualifications
c) qualities
5. We shouldn't use the same old strategies. = We should __________________ using the same old strategies.
a) avoid
b) averse
c) avert
6. Viral marketing uses "word-of-______________" ( = information passed from one person to another) to increase
brand awareness.
a) speech
b)
month
c) mouth
7. The figures are down from January. = The _________________ are down from January.
a) numbers
b) economics
c) mathematics
8. What do you do with market research?
a) You make it.
b)
You conduct it.
c) You create it.
9. Tom did so well last year, he was ________________to management.
a) demoted
b) promoted
c) put
10. I'm sorry, our store has a very strict return _______ .
a)
policy
b)
c)
model
receipt
SPOT THE ERRORS (10 points) – There is one word or phrase in each of the following sentences
which is incorrect. Clearly circle the mistake in each sentence.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
He was quite amusing when he heard what had happened.
Turn left by the crossroads when you reach it.
He has been working here for sometimes.
He stopped to see if he could picked up the trail.
Although he jumped aside, but the stone hit him.
I decided to climbed to the top of the hill to get a better view.
He jumped down after shouted a warning to those standing below.
After a few minutes, I look up and saw that it was getting dark.
I saw the blind man crossed the busy road without any help.
The robber gave the victim with a hard blow.
ESSAY (10 points)
The United Nations has declared 2012 as the “International Year of Cooperatives”.
Cooperatives are specific business models used around the world. This business model
requires people to work together so they can achieve more than if they work separately.
Working together, the people share the risks and they share the profits. In what ways could
agricultural cooperatives help rural economic development in your country?