thailand economics competition

25th September - 4th October 2019

1. Do not open this question booklet until instructed to do so.

2. You have thirty (30) minutes to answer all thirty (30) questions. No additional time is allowed for reading.

3. Pencils and erasers only are permitted at your desk.

4. On the response sheet, please fill in your Full Name.

5. Only the response sheet will be marked and scored.

6. One (1) mark will be awarded for each correct response.

7. Avoid guessing, as one quarter (1/4) of a mark will be deducted for each incorrect answer.

8. Unanswered questions score zero (0).

9. Choose the most correct answer option to the question and completely fill in the corresponding box on the Response Sheet. Use PENCIL only.

Thailand Economics Competition

Thailand Economics Competition 2019 2

PART A

Directions: Each set of lettered choices below refers to the numbered questions or statements immediately following it. Select the one lettered choice that best answers each question or best fits each statement and then fill in the corresponding box on the response sheet. A choice may be used once, more than once, or not at all in each set.

Questions 1-3

Which province ____________

1. produces the greatest palm oil in Thailand?

2. borders Myanmar?

3. has the lowest income per capita?

Questions 4-6

A. Fiscal Policy B. Monetary Policy C. Supply-side policy D. B and C E. A and C

Which choice best describes the following government policy?

4. Increase in the minimum wage to 325 Baht in Bangkok in 2018

5. Increase in interest rates from the Central Bank

6. Government provision for research and development

Questions 7-8

A. Perfect Competition B. Monopolistic Competition C. Monopsony D. Monopoly E. Oligopoly

Identify the market structure that most accurately depicts the following industries in Thailand:

7. Telecommunication providers

8. Horse racing betting venues


C

BD

E

A

Questions 9-10

Which graph best applies to the following situation?

9. A worker who has worked in the same company for the past 30 years

10. The long run total supply of an economy after successful supply-side policies


A. B. C.

D. E.

PART B

Directions: Each of the questions or incomplete statements below is followed by five suggested answers or completions. Select the one that is best in each case and place the letter of your choice in the corresponding box on the response sheet.

11.What event in 2018 caused a major decline in the number of Chinese tourists in Thailand?

A. Detainment of Chinese tourists at Don Mueang airport

B. Boat accident in Phuket C. Bombing of the Erawan Shrine D. A fire at Central World (shopping mall

in the centre of Bangkok) E. Visa fee exemption for Chinese tourists

12.What event turned Thailand’s economy from one of subsistence to cash?

A. Influence from colonised neighbouring countries

B. Opening of the commercial rice market C. Industrialisation of the Thai economy D. Thailand started trading with foreign

countries E. Legislation redistributing agricultural

land in 1937 13.Which of the following policies was not

part of “Thaksinomics”?

A. Creating cartels or consortiums to increase the price of exports.

B. Investing over $50 billion in public infrastructure

C. Subsidized transportation vehicle fuel prices

D. Nationalisation of some state-owned enterprises

E. A four-year debt moratorium for farmers

14. The three provinces make that up the Eastern Economic Corridor are?

A. Buriram, Surin and Sri Saket B. Chonburi, Trat and Rayong C. Chachoengsao, Prachinburi and Sa

Kaew D. Chachoengsao, Chonburi and

Chanthaburi E. Chachoengsao, Chonburi and Rayong

15.Which of the following government policy has been implemented to solve market failure resulting from depletion of common access resources (tragedy of the commons)?

A. Increasing foreign aid to neighbouring countries

B. Extending Khao Yai National Park's protected area

C. Closing the Railay Bay to allow for natural regeneration

D. Passing legislation making Illegal, Unreported and Unregulated (IUU) fishing an environmental crime

E. Fishing restrictions in the Gulf of Thailand for three months

16. The misery index, which some commentators suggest measures the health of the economy, is:

A. The sum of the SET 50 Index and the Official Cash Rate

B. The sum of the unemployment rate and the inflation rate

C. The sum of change in GDP and change in employment

D. The sum of the natural rate of unemployment and the actual rate of unemployment

E. The sum of the unemployment rate and the inflation rate


https://en.wikipedia.org/wiki/Subsidy

17. Why was Chonburi known as the “Detroit of the East”?

A. Access to the sea B. The regional government filed for

bankruptcy C. Source of a new musical genre D. Large car manufacturing industry E. Is currently going through a process of

deindustrialization

18. Which free trade agreement if created, will result in the world’s largest trading (based on combined Gross Domestic Product)?

A. African Free Trade Zone (AFTZ) B. Comprehensive and Progressive

Agreement for Trans-Pacific Partnership (CPTT)

C. Trans-Pacific Partnership (TPP) D. Regional Comprehensive Economic

Partnership (RCEP) E. Asean Economic Community (AEC)

19. What National Development Plan is

Thailand currently under?

A. Tenth B. Eleventh C. Twelfth D. Thirteen

20. Which of the following is NOT a state enterprise?

A. Krung Thai Bank B. Thai Airways international C. Bangkok Mass Transit System (BTS) D. National Science Museum E. PTT

21. ______ is the most illiquid:

A. Government bonds B. Stocks C. Land D. Cash E. Current Assets

22. What was NOT agreed at the ASEAN summit 2019?

A. Push to conclude the Regional Comprehensive Economic Partnership (RCEP)

B. Putting forward a joint bid to host the World Cup in 2034

C. Agreement of the repatriation of the Rohingya refugees

D. Reaffirming the importance of the Treaty of Amity and Cooperation in Southeast Asia (TAC).

E. Commitment to preserve the Southeast Asian region as a Nuclear Weapons Free Zone

23. Assume that net exports rise by $1 billion. Explain why equilibrium real GDP might rise by more than $1 billion:

A. An increase in net exports appreciates the dollar causing a further increase in net exports

B. An increase in net exports causes an increase in tax revenues which increases government spending

C. An increase in net exports increases income causing an increase in induced consumption

D. An increase in net exports causes an increase in the money supply

E. An increase in net exports causes a decrease in the money supply

24. What are the three pillars of King Bhuminbhol’s Sufficiency Economy?

A. Self-immunity, Resistance and Subsistence

B. Sustainability, Reasonableness and Subsistence

C. Moderation, Reasonableness and Self-immunity

D. Sufficiency, Growth and Sustainability E. Cooperation, Sustainability and

Subsistence


25. Thai Beverage's acquisition of Starbuck’s operation in Thailand is an example of?

A. Backward vertical integration B. Forward vertical integration C. Conglomerate integration D. Horizontal integration E. Interdisciplinary integration

Questions 26 refers to the to the following picture.

26. Which sector does the image best represent?

A. Primary Sector B. Secondary Sector C. Quinary Sector D. Quaternary Sector E. None of the above

27. Which of these measures will by itself decrease the Gini coefficient of income distribution?

A. Flat rate income tax B. Regressive income tax C. Progressive income tax D. Proportional income tax E. Income tax at the rate of 80% for the

richer half of the population and income tax at the rate of 20% for the poorer half

28. How does the Fiscal Policy Office aim to balance the budget by 2030?

I. Reduce government’s infrastructure spending II. Increase tax collection III. Laws restricting government spending

A. I only B. II only C. I and II only D. II and III only E. I, II and III

29. Which branch of economics best challenges the economic rationality assumption (or the rational choice theory)?

A. Ecological economics B. Behavioural economics C. Environmental economics D. Keynesian economics E. Developmental economics

30. Which statement is most accurate:

A. Government is set to legalise medical marijuana in five year

B. Government has passed a bill to allow 6 marijuana plants per household

C. Public Health Ministry hopes to incorporate it into the national essential drugs list

D. Any consumption of marijuana is illegal E. Choice B and A


Source: Business Insider

Thank you for participating in the 2019 Thailand Economics Competition.

thailand economics competition

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