ĐỀ THI ANH VĂN ĐỀ SỐ SECTION 1: Language usage In the long term ……….is due to increase in the price of raw materials This is the situation where prices rise to keep up with increased production cost a devaluation b inflation c recession d crisis In a accordance with our usual terms, payment will be by …………This is a letter from a bank authorizing payment of a certain sum to a person or a company a cheque b banker’s draft c letter of credit d cash on delivery We enclose our……… , which is a formal request for payment a receipt b quotation c commercial invoice d bill of lading The industry and constrution ……… is facing difficulties due to low efficiency and competitiveness a set b sector c section d part It is complained that the Telephone and Post Communicatios Company is operating in a very favourable environment without any a monopoly b fluctuation c promotion d competition We are proud of the very high level of services we offer and are accustomed to organizing conferences ……… two thousand delegates a out of to b of up to c from up to d up from to Sofitel Plaza Hotel has an excellent range of facilities and no doubt you will be aware ……the fact that the local area is rich in cultural interest a for b to c of d about When we receive your bank confirmation of L/C, your order will be made …… a for b over c up d with Impex is an international company which deals …… a wide variety of goods a for b in c of d about 10 A fall in prices can result in serious difficulties to many producers and may cause them to go …… business completely a through b out c out of d into 11 The MD asked Mr Green a that he had finished the report b whether he had finished the report c had she finished the report d.if had he finished the report 12 The MD also wanted to know a when Mr Green will submit that report b when would Mr Green submit the report c when will Mr Green submit the report d when Mr Green would submit the report 13 Would you like …….coffee? Yes, please a any b the c d a 14 The goods in this catalogue are of ……… excellent value I am going to order some a the b c an d a 15 The Sales&Marketing Department will be divided into two ……… , a new Management Services Department will be created a Furthermore b Therefore c Although d Otherwise 16 …………the launch date is due, the new product is not ready yet So, the shopfloor workers are working hard now a Nevertheless b However c Although d Inspite of 17 Fluctuation in exchange rates causes instability …… , it makes forecasting more difficult a In addition b So c In order that d So that 18 Producing new software is not necessarily expensive, ……… innovations in computer hardware certainly involve massive costs a where b whereas c when d as 19 Mr Green , ………… is an experienced businessman is very eager to expand his business in the Middle East a which b that c who d b & c 20 One of the accidents they had was pretty serious A workman ……… 20 feet above the ground when he suddenly fell a was working b worked c has been working d has worked 21 The number of overseas Vietnamese going home ……… by 8.9% this year a increases b is increasing c has increased d increased 22 The Bank’s loan terms are better than those on hire purchase, so I …… ……… the bank loans a am choosing b had chosen c was choosing d will be choosing 23 My boss has come in and …… you in a few minutes a would see b has seen c will see d is going to see 24 Next week, John is going home for Christmas He hopes his family …… at the airport a will have waited b have been waiting c will be waiting d are waiting 25 Could you tell Mr Blake that Mr Ali is here? He ……… me a will expect b was expecting c is expecting d has expected Complete each sentence with the correct from of the word in brackets 26 (BENEFIT) The new salary scheme is ……….to all staff 27 (COMMERCE) Ho Chi Minh City is the biggest …… center in the country 28 (RELATIVE) The risk of investing in durable goods is …… low 29 (VARY) Prices have not shown much …………this year 30 (MANAGE) Good …………should be capable of leading as well as managing SECTION 2: Language use (70 marks) 2.1 Choose ONE suitable word for each sentences from the list below (20 marks) measurable deteriorate goods money factors payments decrease production capital economy resources companies value available risk As they …… easily, perishables must be placed on the market as quickly as possible Foreign direct investment(FDI) has significantly contributed to the performance of the……… FDI projects account for 12% of GDP and 35% of industrial ……… More than 2,500 FDI projects have been licensed with a total ……… of 40 billion dollars Economics studies how society uses its scarce ………… to produce goods and services Money is used to save for the future; it is a store of ………… Providing capital for a business always involves an element of ………… 8.Entrepreneurs control and co-ordinate various …… of production The econnomist is only interested in services which are ………….in terms of money 10 Changes in prices result in changes in the quantity of a particular commodity ………….to consumers 2.2 Reading comprehension (30 marks) Read the passage below and then the tasks that follow It seems easy to say that you are employed if you work for somebody else and you are self – employed if you work for yourself! But life isn’t quite so simple Being selfemployed is not restricted to people who run their own business, in the physical sense of owning property and stock and perhaps employing their own staff A great number of people work from home in a wide range of occupations and many of them are classed as self-employed Examples are the hairdresser who has set up shop in one room of the house, the freelance book-keeper who does the accounts for other small businesses, the woman who holds clothing or Tupperware parties, and the artist who takes on freelance work from various publishing companies People who work on a freelance basic “hire out” their skills to anyone who will pay them A freelance photographer, for instance, may either be contracted to a specific job for a newspaper or may even take photographs of events on the change that he/she can sell them The number of people in Britain who are classed as self-employed rose by 52% between 1981 and 1991 from 2.2 million to 3.3 million people – and most of them work on their own (i.e they not employ other people) in many cases these are people who have been faced with redundancy and who have used their savings or their redundancy payments, or taken advantages of one of the government schemes to set up on their own Circle the correct answer 11 Which of the following suggestions is a suitable title for the passage? a Self – employment b Employed or self – employed? c The UK employment market d Types of employment 12 A self-employed person a has to carry out instructions b works for several employers c is paid a wage or salary d is own employer 13 The passage suggests a The pattern of employment is not varied in the UK b If you are in a job, you will have it forever c It is standard practice for many people in the UK to leave school and work for themselves d In the UK people can either have the opportunity or the finances to start in business for themselves What does each of the following underlined word/phrase refer to? 14 “…… and many of them are classed as self-employed.” (Paragraph 1) 15 “by 52% between 1981 and 1991 from 2.2 million to 3.3 million people – and most of them work on their own.” (paragraph 3) Which words in the passage mean the following? 16 jobs……… 17 to classify ……… 18 state of being no longer needed for any available jobs …… Fill in each blank with ONE suitable word from the passage 19 …………… becomes more popular among mothers of young children as they don’t have to work the standard a.m to p.m a day 20 Self – employed may ……… other people to help them with their business 2.3 Writing (20 marks) Read this invitation card and write a short description of the Book Fair for a brochure INVITATION TO 2002 BOOK FAIR Youth Cultural Centre Exhibition of Books in Vietnamese and foreign languages Free copies of catalogues Free use of Internet Publishers from over the country and Oxford University Press 21 – 28 February, 2002 ĐỀ SỐ SECTION 1: Language usage (30 marks) Circle the correct answer We believe communication channels within the company will be simplified, …… our decision making will be more streamlined a in order to b so c so that d that No holiday booking will be accepted …… it is accompanied by the necessary deposit a if b whether c unless d when More men than women are self-employed ……… this type of work is also popular among mothers of young children a however b although c nevertheless d inspite of Travel Services is expanding its business to Vietnam, ………… is a fast growing market a which b who c that d Coca-Cola employees enjoy high salaries ………… , they can claim traveling expenses a In addition b however c Therefore d So that After considering the advantages and disadvantages of the trip to Chicago, Mr Green wants to revise his ……………… a plan b agenda c itinerary d.list Exports of the company ……… of natural gas, cotton, and textiles a include b has c consist d compose ………………of currency is American dollar a unit b money c measure d device There is a very rapid growth in the computer and data processing market, especially in the banking a section b sector c part d department 10 A group of certain companies …………the market when they have completely controlled over particular commodities a corner b advertise c monopolize d motivate 11 We are planning ……………series of travel talks on different holiday resorts The first talk is called “Discover Vietnam” a the b a c an d 12 The sign on the door says “…………… set menu lunch will be available from 12:30p.m we hope you will be able to attend” a the b a c an d 13 The sponsorship will be ………….those employees with good records of work a for b on c with d in 14 The enclosures should be attached …………… the letter a to b for c with d in 15 Alison has finished her project ……… personnel management a in b about c to d on 16 The clerical staff will use the desk top system ………………word processor a like b same as c as d similar to 17 The Us dollar has risen …………… Vietnamese dongs a to b by c against d opposite 18 Multinational companies …………… Rapidly since World war 2, and today some have operations in more than 100 countries a were growing b have grown c had grown d grew 19 A huge explosion caused extensive damage last night in the new multi-million dollar factory of Perfecta Ltd, the well-………… ladies’ fashion designers a know b known c knew d knowing 20 “I am sorry Mr Dent will not be able to see you tomorrow He …………… a meeting 9:30 tomorrow a will attend b is attending c is going to attend d attends 21 Travel Services is discussing …………… an office in Vietnam to expand their business in South East Asia a to open b the opening c opening d opened 22 Tourists are strongly recommended ……… Travel insurance for the period of their journey a the taking out b to take out c to be taken out d taking out 23 The manager is interested to know a if staff are happy with the new arrangements at work b whether are staff happy with the new arrangements at work c are staff happy with the new arrangements at work d what staff are happy with the new arrangements at work 24 The manager came to see me and asked “………….” a What other changes to the working conditions you think we should make? b What other changes to the working conditions you think we should make? c If you think we should make other changes to the working conditions? d If other changes you think we should make to the working conditions 25 ………………will be a new year party at 8:00 in the evening It will be held at the Continental Hotel a There b It c This d That Complete each sentences with the correct form of the word in brackets 26 (EMPLOY) The new salary scheme is to the benefit of all ………… 27 (VARY) The company will increase the ……… of products offered for sale 28 (PROFIT) It would be more ……… to set up a subsidiary 29 (FINANCE) HSBC provides ………… Services all over the world 30 (EXTREME) The figures show an ………… good year for the company SECTION 2: Language use (70 marks) 2.1 Choose ONE suitable word for each sentences from the list below (20 marks) competition sales average diminish reduce planned increase measure monopoly management bear rate economy particular economic Besides essential commodities, people also buy non-essential commodities which provide some …………… personal satisfaction Utility is related to our decisions about priorities in production, particularly in a centrally ………………… economy The Vietnamese economy grew by an annual ………… of 8% between 1991 and 1998 In 1999, …………growth slowed down with a 5% increase in GDP GDP’s growth ……… stood at 6% in 2000 – 2001 and is projected as 7% this year Economists …………the services which people provide for financial rewards Entrepreneurs make decisions on production and ………… the risk of success or failure ……………among sellers of the same commodities has an influence on its market prices Most nations hold a ………… on such essential commodities as electricity and water 10 The consumer’s desire for a commodity tends to …………… As he gets more units of that commodity 2.2 Reading comprehension (30 marks) Read the passage below and then the tasks that follow The number of people working part-time has increased dramatically over the last ten years, not just in Britain but also throughout the European Community In many cases companies are converting full-time jobs to part time positions For example, in late 1992 Burtons announced that 1000 full-time shop jobs were to be replaced by up to 3000 parttime posts The main difference, of course, between working part-time and working full-time is in the number of hours worked A part-time employee will work less than the standard opening hours of the company In some cases two part time employees might job share one full-time job – i.e they the work between them Employers may prefer part-time staff because the company’s wage bill is reduced The employer also saves on National Insurance payments if part-time staff earn less than the lower earnings limit Part-time staff are more flexible They can be used to cover for absent staff and work extra hours when the company is busy or wants to open longer hours In addition, part-time staff not have the same legal rights in employment law as full-time staff unless they work more than 16 hours a week Those working fewer than eight hours a week can never gain protection This means they cannot claim for unfair dismissal and not receive other benefits such as maternity or pension rights Circle the correct answer 11 Which of the following suggestions is a suitable title for the passage? a Full-time or part-time b Employing part-time staff c Working part-time d Converting full-time jobs to part-time positions 12 Part-time workers a gain the same employment rights as in other European countries b not get the same benefits as full-time staff in employment c can expect their employers to pay for their training d are not readily available to companies when they need them 13 The passage suggests a British companies tend to employ more staff on a part-time basis b Companies in Britain can grow faster if they increase part-time staff c part-time jobs benefit employees d part-time work enables a person to earn some money and yet have more time for leisure What does each of the following underlined word/phrase refer to? 14 “………They can be used to cover for absent staff and work extra hours ……….”(Paragraph 3) 15 “ ……….This means they cannot claim for unfair dismissal and ………” (Paragraph 3) Which words in the passage mean the following 16 changing from one form to another ……… 17 employees the work between them ……… 18 loss of job …………… Fill in each blank with ONE suitable word from the passage 19 Working part-time is a useful way of earning some income for those who cannot work ………….(e.g students, pensioners who want to supplement their pension) 20 He spent all his …………… without thinking about how hard it was for him to make this money 2.3 Writing (20 marks) Read this invitation card and write a circular letter to book publishers INVITATION TO 2002 BOOK FAIR Youth Cultural Centre Exhibition of Books in Vietnamese and foreign languages Free copies of catalogues Free use of Internet Publishers from over the country and Oxford University Press 21 – 28 February, 2002 ĐỀ SỐ SECTION 1: Language usage (30 marks) Circle the best answer I ……… in connection with your letter of 10 November, 2000 a am writin b write c will write d have written We ………… Both Enterprise & 2, and now are ready for the final exam a have been studying b studied c have studied d had studied John Hartz ……… A lecture when he was interrupted a delivered b had deliverd c was deliverd d was delivering We delayed ……….the product because of technical problems a being launched b launching c launch d.to launch The consultant advised us ……… a subsidiary in the North a to set up b setting up c set up d a & b are correct Thank you, I have passed the exam Without your help I ……… a would have failed b failed c would fail d had failed The receptionist asked Alison ………… a that she has made a reservation b if she has made a reservation c has she made a reservation d whether she had made a reservation The managing wanted to know…………… a how much has their turnover risen b how much their turnover had risen c that how much their turnover had risen d that how much their turnover has risen In 1999 the P & G spent 30 million pounds …… research & development a on b about c with d.to 10 The turnover showed an increase …………5% a by b to c of d on 11 The demand ………….this product is growing fast a on b for c of d in 12 ……………, we should advertise this job locally a in my opinion b according to me c on my opinion d according to my opinion 13 All foreign investors must comply ……… the law on foreign investment a with b in c about d on 14 How long have you been in ……… oil industry? a an b the c a d no article 15 ………………smoking is not allowed in the library a a b the c an d no article 16 We are making intensive preparations ……… the new product can be launched before Tet a in order b for the purpose c so that d in order to 17 The MD ………… is going to retire, has recmmended Mr Blake as his successor a who b that c who d ,that 18 The business performance did not improve ………… The appointment of the new MD a when b until c since d where 19 Home sales have shown a strong performance, ……………exports are well below the target a however b but c nevertheless d and 20 ……………we invest more in R & D, we are likely to fall behind our competitors a If b When c Unless d Whether 21 We’ve started a join ………… program with a Canadian company a project b firm c venture d company 22 With the new pension plans employees can ………… To take early retirement a afford b allow c demand d think 23 The Chief Accountant resigned from the company for …………Reasons a personnel b individual c personal d all are correct 24 We’ve spent a large part of our ………on advertising a sharply b slightly c steadily d dramatically 25 We’ve spent a large part of our ………… on advertising a budget b costs c expenses d amount Complete each sentences with the correct form of the word in brackets 26 (deliver) The price include ………charge 27 (success) We hope the new product will ……… in the home market 28 (attend) Why don’t teachers check the ……………of students nowadays? 29 (impression) Most consumers are ………….by our new product 30 (hard) You should work ……… to make up for your lack of intelligence SECTION 2: Language use (70 marks) 2.1 Gap – filling (20 marks) Choose ONE suitable word for each sentences from the given list below Strictly Reward Budget payment satisfy capital inelastic study economic tends elastic fairly accumulates saves labour The economist is not coneerned with the services which people provide for no financial ……… Profit is the surplus which ……… as a result of productive work There is always some ……… involved in financing a business Commodity of different kinds ………… our wants in different ways According to the Law of Supply, a rise in prices ………to increase supply Supply is ……….when it can be increased or decreased rapidly in response to market prices The economist’s method should be ……… objective and scientific The ……… Reform in Vietnam has achieved remarkable results Vietnam is not only rich in national resources, but also has an abundance of……… 10 Raising ………… for development is one of Vietnam’s main priorities 2.2 Reading comprehension Read the passage below and then the tasks that follow Business is a word that is commonly used in many different languages But exactly what does it mean? The concepts and activities of business have increased in modern times Traditionally, business simply meant exchange or trade for things people wanted or needed Today, it has a more technical definition One definition of business is the production, distribution, and sale of goos and services for a porfit To examine this definition, we will look at its various parts First, production is the creation of services or the changing of materials into products One example is the conversion of iron or into metal car parts Next, these products need to be moved from the factory to the market place This is known as distribution A car might be moved from a factory in Detroit to a car dealership in Miami Third is the sale of goods and services Sale is the exchange of a product or service for money A car is sold to someone in exchange for money Goods are products that people * increase more rapidly than income during a business expansion * be relatively stable and thereby help stabilize aggregate demand over the business cycle * be primarily determined by income rather than expected income in the long-term future * fluctuate substantially over the business cycle and thereby be a major contributing factor to economic instability That answer is incorrect Correct answer: be relatively stable and thereby help stabilize aggregate demand over the business cycle The permanent income hypothesis suggests that individuals will smooth their consumption according to their long-term expectations of their income Thus, consumption will be relatively constant over periods of higher or lower income This will work to stabilize aggregate demand during economic booms and recessions -Within the AD/AS model, how does an economy adjust to an output beyond the economy's long-run capacity (such as would result from an unanticipated increase in aggregate demand)? * Increasing wage rates and resource prices reduce aggregate demand and restore equilibrium at a higher price level * Long-run aggregate supply increases, leading to a new equilibrium at a lower price level * Wage rates and resource prices rise, causing a decline in SRAS and the restoration of equilibrium at a higher price level * A lower real interest rate leads to an expansion in short-run aggregate supply and restoration of equilibrium at a lower price level That answer is incorrect Correct answer: Wage rates and resource prices rise, causing a decline in SRAS and the restoration of equilibrium at a higher price level If output is above potential output, competition for resources (including labor) will drive prices (and wages) higher In turn, higher resource prices will result in lower profits for firms, discouraging production and decreasing aggregate output -Economists use the phrase "business cycle" when referring to fluctuations in * interest rates * aggregate measures of economic output and real income * the money supply * the general level of prices That answer is incorrect Correct answer: aggregate measures of economic output and real income The business cycle is the observable swings in the rate of output produced The business cycle is generally measured by variables such as the rate of unemployment and changes in real GDP -The natural unemployment exceeds zero because * the economy is characterized by dynamic change and imperfect information * not every member of society is capable of participating in the labor force * unemployment will always rise during the recessionary phase of the business cycle * some workers will always have few skills That answer is correct! As long as workers are mobile-as long as they can voluntarily quit and search for better opportunities in a changing world, switching from one job to another and reallocating work responsibilities within the family-some unemployment will be present -Inflation tends to be self-perpetuating because of tendencies of consumers to _ and producers to * spend more as income rises, produce more for sale * bid up prices irrationally, produce more at higher prices * spend more now, store goods in inventories rather than sell them * save more, invest more * spend less, lay off workers That answer is incorrect Correct answer: spend more now, store goods in inventories rather than sell them Consumers tend to spend more now in anticipation of inflation, while producers tend to store goods in inventories in anticipation of higher future prices Consumers therefore exacerbate the "too many dollars" side of inflation by spending more, and producers perpetuate the "too few goods" side of inflation by selling fewer goods -Large denomination money market mutual funds are part of the money supply * M1 * M4 * M2 * M3 That answer is incorrect Correct answer: M3 Small denomination money market funds are part of M2 while the large denomination ones (minimum $50,000 deposits) are part of M3 There is no M4 definition of money supply; M3 is the broadest definition Which of the following will most likely accompany an unanticipated increase in aggregate demand? * a decrease in resource prices * an increase in unemployment * a decrease in prices * an increase in real GDP That answer is incorrect Correct answer: an increase in real GDP In response to an unanticipated increase in aggregate demand for goods and services, prices will rise in the short run and output will temporarily increase -Fiscal policy involves: * none of these answers * the use of a government's taxing and spending authority * discretionary actions by the Fed to control inflation * the actions by the Treasury to control budgetary spending That answer is incorrect Correct answer: the use of a government's taxing and spending authority Fiscal policy refers to the use of governmental authority in determining taxation and spending schedules to achieve macroeconomic goals -A business produced $10 million of goods in 1990 but sold only $9 million Is the $1 million increase in inventory counted as part of the 1990 gross domestic product? * Yes, because these inventories are part of the output of the economy in 1990 * Yes, but they will be added to the 1990 GDP only if they are sold in 1991 * No, because inventories are intermediate goods * No, because if these inventories were sold in 1991, they would be counted twice That answer is correct! GDP is designed to measure current production and therefore has an allowance for goods produced that were not sold during the year This is called inventory investment -If the increase in nominal GDP equals 6% and the increase in the real GDP equals 4%, the GDP deflator has: * not changed * decreased by 1.92% * increased by 1.92% * decreased by 2% * increased by 2% That answer is incorrect Correct answer: increased by 1.92% The increase in real GDP equals increase in nominal GDP divided by increase in GDP deflator Hence, the GDP deflator has increased by 1.06/1.04 = 1.92% -An increase in the short term interest rates will the velocity of money * increase * not change * insufficient information * decrease That answer is correct! An increase in the short term interest rates increases the opportunity cost of holding money balances Hence, households and businesses will conduct the regular business with lower amounts of currency, increasing the velocity of money Note that this contradicts the quantity theory of money, wherein classical economists believed that the velocity of money depended on institutional arrangements and not on the changes in money supply -To stimulate a sluggish economy, which of the following would be advocated by a Keynesian? I Cutting taxes II Increasing budgetary spending III Increasing money supply IV Lowering interest rates * II & IV * II only * I & II * I, II & IV That answer is incorrect Correct answer: I & II If demand from the private economy is weak, Keynesian economists would advocate using government spending to increase demand directly, and cutting taxes to increase disposable income, thereby increasing consumer and investment demand indirectly Congress passes a law stating that the government will pay up to $1,500 each month to any laid-off worker for up to one year or until s/he finds a new job Assume all other government spending programs remain constant and tax policy does not change How would economists categorize such a law? * fiscal policy rule * passive monetary policy * pork politics * non-activist fiscal policy * deficit spending * expansionary fiscal policy That answer is incorrect Correct answer: non-activist fiscal policy Fiscal policy involves the use of the government budget to impact aggregate demand In this case, government spending will increase during times when unemployment is high, effectively increasing aggregate demand at times then other market sectors are lagging Such a policy is called non-activist fiscal policy -Which of the following is the most common method used by central banks to enact monetary policy? * targeting the price of gold * setting short-term interest rates by decree * printing currency * purchase and sale of short-term securities * manipulation of currency value That answer is incorrect Correct answer: purchase and sale of short-term securities Most major industrialized nations enact monetary policy by "open-market activity," by which the central bank purchases or sells short-term securities in an attempt to maintain short-term rates at a certain level In the U.S., the Federal Reserve announces target rate for over-night bank loans, and then will purchase or sell such loans in the open market to maintain that rate The press often announces that the Fed "sets" interest rates, but this is not the case -You have been given the following macroeconomic information for a given year: Personal consumption = 3,000; Indirect business taxes = 425 Depreciation = 120; Gross private investment = 2,200 Government expenditures = 1,300; Imports = 2,300 Exports = 2,600; Employee income = 225 Corporate profits = 700; Government investments = 900 The GDP, calculated using the Expenditure approach, equals * 7,400 * 7,700 * 9,950 * 8,925 * 13,770 That answer is incorrect Correct answer: 7,700 The Expenditure approach has four components: Personal consumption expenditure Gross private domestic investment (investments by people residing outside the country are ignored, even if they happen to be citizens of the country) Government consumption & investment Net exports In this case, the GDP equals 3000 + 2200 + 1300 + 900 + 2600 - 2300 = 7,700 -Which of the following would not be an expected impact of debt-financed new government spending? * a decrease in unemployment * an increase in capital utilization * a outward shift in the aggregate supply curve * an increase in aggregate demand * an increase in the price level That answer is incorrect Correct answer: a outward shift in the aggregate supply curve Theoretically, fiscal policy should cause a shift in the aggregate demand curve, which will cause movement along the supply curve There is little reason to expect government spending to shift the supply curve -Suppose the government borrowed 140 billion dollars and cut taxes in an equivalent amount According to the Rational Expectations theory: * resource prices will fall, leading to lower unemployment * there will be no systematic effect on aggregate demand or interest rates * the economy will experience an inflation due to increased consumption * the domestic currency will depreciate, causing an increase in exports That answer is incorrect Correct answer: there will be no systematic effect on aggregate demand or interest rates If the people behaved according to the Rational Expectations Theory, they would recognize that the current tax cuts financed with debt would lead to an equivalent amount of higher future taxes This would induce them to save all of the money they receive in tax cuts in anticipation of higher tax liability in the future This is the basis of Rational Expectations Theory's claim that discretionary fiscal policy will not affect the economy in any systematic way This means that aggregate demand, real GDP and real interest rates will all remain unaffected -Congress passes a law that requires government spending rise each year by exactly the inflation rate The year the law was passed the budget was balanced, inflation was moderate, and unemployment was at the natural rate What could be said about the government's budgetary position if national income declines? * this cannot be determined without knowing degree national income declined * the government would be in a deficit position because tax receipts would rise * the budget would remain balanced * the government would enjoy a surplus because spending would fall * this cannot be determined without knowing the exact inflation rate That answer is incorrect Correct answer: the government would be in a deficit position because tax receipts would rise During a recession, tax receipts would decline, but unless there is deflation government spending would not decline Therefore the government would be in a deficit Laws that automatically cause the government to be in a deficit stance during recessions are called non-activist fiscal policy -How will an unanticipated increase in aggregate demand emanating from an increase in business and consumer optimism influence equilibrium output in the goods and services market? * Output will decrease and prices fall * Output will increase and prices rise * Output will decrease and prices rise * Output will increase and prices decline That answer is incorrect Correct answer: Output will increase and prices rise Consumer and investor optimism concerning the future direction of the economy stimulates current investment consumption Investment today may be necessary if business firms are gong to benefit fully from these opportunities Similarly, consumers are more likely to buy big ticket items when they expect an expanding economy to provide them with both job security and rising income in the future So increased optimism encourages additional current expenditures by both investors and consumers, increasing aggregate demand This increase in aggregate demand will stimulate output and place upward pressure on prices -Since 1960, the federal budget deficit as a percent of GNP has generally during recessions and during periods of economic expansion * declined; increased * remained stable; declined * increased; declined * increased; remained stable That answer is incorrect Correct answer: increased; declined This is an example of counter-cyclical policy: during recessions, government revenue falls and government expenditures rise -Within the AD/AS model, if consumers suddenly increase their saving and cut back on spending, then the * real interest rate will decline * real interest rate will fall as the result of an increase in prices * long-run aggregate supply will decline to restore equilibrium * natural unemployment will rise That answer is correct! Increased savings expands the supply of loanable funds and decreases the interest rate This will stimulate investment and consumption spending and will work to correct the decline in consumption due to increased savings -The consumption function shows the relationship between consumption and: * total wealth * expected inflation * disposable income * permanent income That answer is incorrect Correct answer: disposable income Disposable income is the income available to consumers after taxes This income can either be spent on current consumption or invested in assets for future use The consumption function shows the relationship between this disposable income and consumption Remember that this function is almost certainly not linear, although it is often illustrated as such -If income of a family increases from $20,000 to $25,000 and consumption from $18,000 to $22,500, then the family's marginal propensity to consume is * 0.72 * 0.80 * 0.20 * 0.88 * 0.90 That answer is incorrect Correct answer: 0.90 Since the MPC is determined according to the ratio: MPC = additional consumption divided by additional income, the MPC here equals: 4,500/5,000 = 0.90 -Which of the following are reasons why inflation is problematic for lenders I Lenders will not be compensated for inflation levels higher than expectations II Inflation lower than expectations impacts lenders' profits III Inflation causes nominal interest rates to be higher * I, II * I, III * I, II, III * I only * II only * III only * II, III That answer is incorrect Correct answer: I only Some inflation expectation is priced into any loan interest rate If actual inflation is higher than this over the loan period, then lenders will not receive adequate compensation for the decrease in purchasing power of the loaned principal -Which of the following will most likely cause an increase (shift to the right) in the long-run aggregate supply curve? * an increase in the price of imported oil * a new regulation that substantially increases the cost of producing computers and computer-directed products * an increase in the economy's rate of capital formation * an increase in marginal tax rates * an increase in the national debt That answer is incorrect Correct answer: an increase in the economy's rate of capital formation An increase in the economy's rate of capital formation improves the efficiency of resource use and allow higher sustainable levels of long run output This is because capital investment expands the supply of physical capital and allows more production to occur (permanently) The GDP deflator equals * the consumer price index * the standard price index * none of these answers * the economic inflation index That answer is incorrect Correct answer: none of these answers The GDP deflator is used to calculate real GDP from nominal GDP by adjusting appropriately for inflation For this, an inflation index is created, called the "GDP deflator." However, the GDP deflator is broader than the Consumer Price Index The CPI is an inflation index for a broad basket of standard consumption goods and services On the other hand, the GDP deflator is an inflation index for the entire basket of goods and services which are part of the GDP -According to the Keynesian view, which of the following will most likely occur as the result of an autonomous decrease of $10 billion in investment? * a decrease in aggregate output by an amount greater than the $10 billion decrease in investment * a decrease of $10 billion in aggregate output * an increase in aggregate output by some multiple of the $10 billion decrease in investment * a $10 billion increase in consumption spending, which will exactly offset the reduction in investment spending * a decrease in aggregate output by some amount less than the $10 billion decrease in investment That answer is correct! The expenditure multiplier suggests that decrease in aggregate expenditures will magnify into larger decreases in aggregate output The expenditure multiplier is a function of the MPC in that a larger MPC implies larger magnification of decreases in aggregate expenditures -According to Keynesians, an expansionary fiscal policy increases aggregate demand and employment because: * a multiplier demand effect occurs in the economy * people fail to anticipate higher future taxes and increase current spending * a lowering of interest rates reduces the incentive to defer spending * people rationally anticipate higher future inflation and raise current expenditure That answer is correct! Keynesians postulate a domino effect that occurs when the government increases its spending Specifically, when the government spends, incomes of some people are raised, who go and spend a part of it Their expenditures, in turn, increase the incomes of some other people and so on This triggered chain reaction leads to a total increase in demand far in excess of the original expenditure incurred by the government If prices and wages quickly adjust to bring the macro economy back to equilibrium at full employment, we can conclude that * the market's self-correcting mechanism works reasonably well * policy rules will tend to destabilize the economy * prolonged periods of abnormally high unemployment will be a persistent problem * discretionary monetary and fiscal policy will help stabilize the economy That answer is correct! Flexible prices and wages allow the economy's self-correcting mechanism to adjust the economic shocks The time frame for this adjustment process is under debate among many economists -If an economy is operating in a range where its aggregate supply curve is vertical, then * the economy must be well below its full-employment output * an increase in aggregate demand will expand nominal GDP but not real GDP * a reduction in aggregate demand will lead to both a higher price level and more real output * the actual inflation rate and the expected inflation rate must be equal * an increase in aggregate demand will lead to an increase in real GDP without any increase in prices That answer is incorrect Correct answer: an increase in aggregate demand will expand nominal GDP but not real GDP Once the economy's full employment capacity is achieve, additional demand merely leads to higher prices rather than to more real output Nominal gains in output may occur but real increases are negated since the price level increases along with output -Suppose the Fed purchases $100 million worth of Treasury bonds in the open market This will cause loanable funds to In the short run, the real interest rate will * increase; rise * increase; fall * decrease; fall * decrease; rise That answer is incorrect Correct answer: increase; fall The purchase of bonds releases additional money in the market, increasing the monetary base and the total money supply In the short run, this reduces the real rate of interest -Which of the following are reasons why budget deficits may lead to increase in the published cost of borrowing? I increased demand for loanable funds II rational expectation of future tax increases or spending cuts III inflation * II only * I, II * I, III * I only * II, III * I, II, III That answer is incorrect Correct answer: I, III The published cost of borrowing is another way of saying the nominal interest rate Since the government must finance the budget deficit with debt, this increases the demand for loanable funds, and hence increases real interest rates Deficit spending also causes inflation, since the shift in aggregate demand results in a higher equilibrium price level This would also increase nominal interest rates -When an economy is temporarily operating at a less than full-employment output, the AD/AS model indicates that * lower wage rates and resource prices will increase SRAS and restore equilibrium, but the model does not indicate how rapidly this will occur * abnormally high unemployment and excess supply will fail to restore full - employment equilibrium * flexible wages and prices will restore full-employment equilibrium quickly * only an increase in aggregate demand could restore full-employment equilibrium That answer is correct! The AD/AS model suggests that an economy operating at less than potential will experience falling resource prices since demand is low for these resources A decline in these prices will stimulate their usage and aggregate supply will pick up Equilibrium at full employment will follow There is no time frame for this adjustment -The equation of exchange states that * money supply multiplied by nominal GDP equals velocity * velocity multiplied by money supply equals nominal GDP * money supply divided by velocity equals real GDP * money supply divided by velocity equals nominal GDP That answer is incorrect Correct answer: velocity multiplied by money supply equals nominal GDP The equation of exchange implies that when the existing money stock M is multiplied by the umber of times V that money is used to buy final products, this yields the economy's nominal GDP (or output times the price level) -The Department of Commerce sums the payments made to resources wages, self-employment income, rents, interest, profits, indirect taxes and depreciation to arrive at GDP This method of deriving GDP is called the * resource cost-income approach * opportunity cost approach * monetarist approach * expenditure approach That answer is correct! The Resource Cost-Income approach to GDP calculates the sum of income payments to resource owners (at factor cost) plus non-income cost items plus GNP-GDP adjustment -Gretchen represents a union of teachers attempting to negotiate a new collective bargaining agreement She makes an estimation that inflation will be 5% going forward based on the average of the last five years She intends to have corresponding pay increases included in the union contract Which of the following economic terms describes her methodology? * rational expectations * historical reference theory * public choice * collusion * adaptive expectations That answer is incorrect Correct answer: adaptive expectations Adaptive expectations hypothesis suggests that individuals will base their views of the future on their experience Gretchen has made her estimation according to this theory -In the Keynesian aggregate expenditure model, business decision makers will respond to an unplanned reduction in inventories by * reducing output * cutting prices * lowering wage rates * expanding output * decreasing employment That answer is incorrect Correct answer: expanding output If actual inventory investment is less than planned inventory investment, decision makers increase output in order to restore inventories to the desired level Such reductions in inventories suggest that aggregate expenditures were in excess of the level expected -Drawing on her account at First Guarantee Bank, Susan writes a check to Valerie, who deposits the check in her account at Citizens First Bank Once the check has cleared, which of the following would have occurred to bank reserves and the M1 money supply? I II III IV Bank Reserves M1 increased increased no change no change increased no change increased no change * III * IV * I * II That answer is incorrect Correct answer: IV There is no change in either bank reserves or M1 for the following reasons Total bank reserves are constant because there is simply a transferal of money across banks: each bank is subject to the same reserve requirement and therefore each maintains identical reserves M1 is constant because the total amount of deposits in the economy is the same: the money supply is affected only by new deposits -If unanticipated expansionary monetary policy causes actual inflation to be higher than expected, then in the short run, * both the real interest rate and unemployment will increase * the real interest rate will decrease and unemployment will increase * the real interest rate will increase and unemployment will decrease * both the real interest rate and unemployment will decrease That answer is incorrect Correct answer: both the real interest rate and unemployment will decrease The difference between the actual and expected inflation rate (higher than expected) causes an erosion in the real wage, thus stimulating employment The real interest rate declines as the money supply increases -Sean owns a factory that produces paper cups Sean had expected the price of paper cups to remain fairly stable However, he suddenly finds demand for his paper cups are exceeding his current production level, and he decides to raise prices This increases his profits to the point that he is considering adding a third shift Sean is unaware that the Central Bank has been expanding the money supply recently Which of the following statement is NOT true about the situation described above? * Adding a third shift will probably cost Sean more than he expects * Sean is acting in a profit maximizing manner * All of these answers are correct * Sean's lack of understanding of economics hindered the Central Bank's ability to influence his decision making * The price of raw materials used by Sean may soon increase * None of these answers is correct That answer is incorrect Correct answer: Sean's lack of understanding of economics hindered the Central Bank's ability to influence his decision making In this case, Sean reacted according to the Law of Supply, one of the basic foundations of economics The price of his product went up, and therefore he may decide to produce more Because we are told his profits rose, we can assume that his costs did not increase by as much as the price increase Because Sean is unaware that inflation may be the real reason why prices for his products rose, he will not plan for likely future cost increases In this scenario, the Central Bank is expanding the money supply, presumably to decrease unemployment and increase production If Sean were to expand his production, he would be doing precisely as the Central Bank had hoped Had Sean been more cognizant of macroeconomic activity, he would be less likely to expand and more likely to brace for cost increases It is precisely his lack of economic knowledge that allowed the Central bank to influence his decision making [...]... to 14, 2001 ĐỀ THI TUYỂN DỤNG TIẾNG ANH VÀO CÁC NGÂN HÀNG ĐỀ SỐ 1 SECTION 1: Language usage (30 marks) Circle the correct answer 1 In the long term is due to increase in the price of raw materials This is the situation where prices rise to keep up with increased production cost a devaluation b inflation c recession d crisis 2 In a accordance with our usual terms, payment will be by …………This is a letter... working conditions do you think we should make? b What other changes to the working conditions you think we should make? c If you think we should make other changes to the working conditions? d If other changes you think we should make to the working conditions 25 ………………will be a new year party at 8:00 in the evening It will be held at the Continental Hotel a There b It c This d That Complete each... suppliers INVITATION TO YEAR 2001 CONSUMER GOODS FAIR Invitation Exhibition Centre Ho Chi Minh City Display of latest products February 12 to 14, 2001 HỌC KINH DOANH BLOG – http://www.hockinhdoanh.tk thi ti ng Anh t Nam - Vietinbank V trí: Tín d ng A Thi ngày 5/12/2010 Choose the best answer 1 She rang to make an early at the hairdressers a Appoinment c Order b Assignment d date 2 One of the public... without thinking about how hard it was for him to make this money 2.3 Writing (20 marks) Read this invitation card and write a circular letter to book publishers INVITATION TO 2002 BOOK FAIR Youth Cultural Centre Exhibition of Books in Vietnamese and foreign languages Free copies of catalogues Free use of Internet Publishers from over the country and Oxford University Press 21 – 28 February, 2002 ĐỀ SỐ... cannot produce as efficiently as other nations, and they export goods that they can produce more efficiently This exchange of goods and services in the world, or global, is known as international trade There are three main benefits to this type of exchange HỌC KINH DOANH BLOG – http://www.hockinhdoanh.tk First international trade makes scarce goods available to nations that need or desire them When a nation... We believe communication channels within the company will be simplified, …… our decision making will be more streamlined a in order to b so c so that d that HỌC KINH DOANH BLOG – http://www.hockinhdoanh.tk 2 No holiday booking will be accepted …… it is accompanied by the necessary deposit a if b whether c unless d when 3 More men than women are self-employed ……… this type of work is also popular among... satisfaction HỌC KINH DOANH BLOG – http://www.hockinhdoanh.tk 2 Utility is related to our decisions about priorities in production, particularly in a centrally ………………… economy 3 The Vietnamese economy grew by an annual ………… of 8% between 1991 and 1998 4 In 1999, …………growth slowed down with a 5% increase in GDP 5 GDP’s growth ……… stood at 6% in 2000 – 2001 and is projected as 7% this year 6 Economists... risk of investing in durable goods is …… low 29 (VARY) Prices have not shown much …………this year 30 (MANAGE) Good …………should be capable of leading as well as managing SECTION 2: Language use (70 marks) 2.1 Choose ONE suitable word for each sentences from the list below (20 marks) HỌC KINH DOANH BLOG – http://www.hockinhdoanh.tk measurable deteriorate goods money factors payments decrease production capital... nevertheless d and HỌC KINH DOANH BLOG – http://www.hockinhdoanh.tk 20 ……………we invest more in R & D, we are likely to fall behind our competitors a If b When c Unless d Whether 21 We’ve started a join ………… program with a Canadian company a project b firm c venture d company 22 With the new pension plans employees can ………… to take early retirement a afford b allow c demand d think 23 The Chief Accountant... Read the passage below and then do the tasks that follow HỌC KINH DOANH BLOG – http://www.hockinhdoanh.tk Business is a word that is commonly used in many different languages But exactly what does it mean? The concepts and activities of business have increased in modern times Traditionally, business simply meant exchange or trade for things people wanted or needed Today, it has a more technical definition