Lahore University of Management Sciences (LUMS) Written Test for Selection of Trade Officers Ministry of Commerce, Government of Pakistan, Islamabad
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1 Lahore University of Management Sciences (LUMS) Written Test for Selection of Trade Officers Ministry of Commerce, Government of Pakistan, Islamabad SAMPLE TEST Question Paper and Answer Book Name: Date of Birth: Identity Card/Passport No. Signature: General Instructions to Candidates o Do not open this exam until told to do so. o Read all questions carefully before answering them. o This exam consists of four sections. o Each section of the exam has a time limit of 30 minutes, which may not be exceeded. o Please wait for the announcement before switching to the next section. o You are allowed to use calculator. o You may use ballpoint or pen to answer questions. o You must switch-off your mobile phones in the examination hall. Failure to do so may lead to cancellation of the exam. o Marks scheme: o International Trade and the WTO 1 (35%) o International Trade and the WTO 2 (35%) o Data Response and Analytical Skills (15%) o IT Skills (15%)
2 Section 1 International Trade and the WTO - 1 Instructions to Candidates: o Answer ALL questions in this section, which carry equal marks. o Think through your answers carefully before writing. o Short clear answers will receive more credit than long convoluted answers. o You have 30 minutes to answer questions in this section. 1
3 International Trade and the WTO 1 Question 1: What is the purpose of an export tax? Show how an export tax affects price, quantity and export of the commodity in the country imposing it. Assume hypothetical prices, quantities and freight cost where necessary. 2
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5 Question 2: What is meant by the overvalued exchange rate? Why does an overvalued exchange rate hurt agricultural exports from a country like Pakistan? Explain your answer by giving examples. 4
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7 Section 2 International Trade and the WTO - 2 Instructions to Candidates: o Answer ALL questions in this section, which carry equal marks. o Think through your answers carefully before writing. o Short clear answers will receive more credit than long convoluted answers. o You have 30 minutes to answer questions in this section. 6
8 Question 1: Pakistan s value-added textile sector often demands a complete ban or imposition of a regulatory duty on export of raw cotton and yarn. They reject free market argument and contend that exports of cotton and yarn increase its price in local market. On the contrary, the spinning sector opposes regulatory duty or ban on export of cotton and cotton yarn. They support free market and allege that Pakistan s value-added textile sector is not competitive enough in export markets. Critically examine if the policy of export of cotton and cotton yarn is justified especially when the country has low cotton output. Note, however, that the value-added sector of Pakistan is free to import raw material from international market, like the value-added sectors of competing countries, e.g., China, Thailand and Bangladesh, among others. Also note that the value-added sector of Pakistan is buying cotton at export-parity price while our competitors are buying from international market at import-parity price (importparity price is higher than export parity price). You may also want to bring into the picture the interests of local cotton-growers. 7
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10 Question 2: Write short notes on the following: a) Definition and types of SPS Measures. b) Pre-shipment inspection Agreement under the WTO. c) GATS definition of trade in services through four modes of supply. 9
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12 Section 3 Data Response and Analytical Skills Instructions to Candidates: You have 30 minutes to answer questions in this section. 11
13 Question 1: Table 1 shows that Pakistan s population is projected to increase from million in 2010 to million by Table 1. Population by Age Groups, Pakistan Million Nos. Age Group Total Source: Government of Pakistan (2011). Pakistan Economic Survey, , Economic Adviser s Wing, Ministry of Finance, Islamabad a) How does the data in this table help to explain the percentage increase in total population from 2010 to 2025? b) In 2010, what percentage of population was of children under 15 years of age; what proportion of population was young (15 24 age brackets)? c) Will less than 25 year-old population be in majority by 2030? d) Can we say that majority of Pakistan s population consists of dependents, e.g., children under 5, older population and women? 12
14 Question 2: Nominal price refers to absolute price of a good, unadjusted for inflation. The real price of a good is the price relative to an aggregate measure of prices, e.g., consumer price index (CPI), or price adjusted for inflation. Table 2 shows the nominal price of wheat and CPI from to Table 2. Average retail price of wheat in Pakistan CPI Price of wheat per kg (Rs.) a) Calculate real price of wheat in in constant rupee? Do you find that after correcting for inflation wheat was more expensive in than in ? b) In real terms, was wheat more expensive in than in ? c) Also calculate real price of wheat in in constant prices. Was wheat more expensive in than in ? 13
15 Section 4 Computer Skills Instructions to Candidates: o Give the answers in the space provided under each question, or as instructed in a specific question. Partial credit may be awarded in cases where the answer is partly correct. o You have 30 minutes to answer questions in this section. 14
16 1. Which of the following applications are used for internet browsing? There can be more than one answer. a. Google chrome b. Internet surfer c. Internet explorer d. Foxpro fire Answer: 2. Here are some file extensions. What type of files are these? File Extension Type.exe.avi.doc.xls.jpg 3. Name the websites that are represented by the following symbols? Symbol Website 4. In the context of computers what is WiFi? 15
17 The next three questions are based on the following figure. 5. What is the URL of the webpage shown in the figure? 6. If mouse is clicked over the Sign in tag, which page is expected to be opened? 7. If I am interested to see the images of the vintage cars, what will be sequence of steps I will have to take? a. Type vintage cars in the text box and press Search tag b. Click on the Images tag to go to Google Images. Type vintage cars in the text box and press Enter key c. Type vintage cars in the text box and press Google Search key d. Type vintage cars in the command line where the Google URL is written and press Google Search key Answer: 16
18 8. In the following figure Deleted Items, Drafts, and Junk are not only bold faced but also have some numbers in front of each of them. What does this mean? Bold Face: (Numbers) 9. If I delete an message from my Inbox by clicking the mouse over the delete symbol, how can I recover that message? a. Look into the Junk folder, and move it to Inbox folder b. Look into the Deleted Items folder, and move it to Inbox folder c. Look into the Drafts folder, and move it to Inbox folder d. Look into the Sent Items folder, and move it to Inbox folder Answer: 17
19 10. Surraya sent an to her friends Hadi, Samina, and Kasim, inviting them to her birthday party. Which of the following statements is NOT true? a. Hadi knows that Samina knows about the birthday party of Surraya. b. Samina knows that Kasim knows about the birthday party of Surraya. c. Kasim knows that Hadi knows about the birthday party of Surraya. d. Samina knows that Hadi knows about the birthday party of Surraya. The answer is: 18
20 Next two questions refer to the following figure. 11. Which of the messages visible in the figure have attachments? List the sender s name and the subject to identify messages. 12. The Subject of these s contains a common string [Kat s Eye Group]. What is the purpose of this string? 19
21 Next two questions refer to the following figure which shows view of an appointment scheduling application. 13. If I want to request acknowledgement of this meeting invitation, which box shall I check? a. Private b. All day event c. Request a response to the invitation d. None of the above 14. If I want that two of my managers must attend this meeting, then under which field shall I put their addresses? a. Required b. Optional c. Resources d. Attachments Answer: 20
22 Next four questions refer to the following spreadsheet. All amounts are in pounds unless otherwise stated. 15. What is the purpose of the? 16. I want to write a formula in cell I9 to compute the total sum of the Salaries expense in pounds for the six months from July 2010 to December Which formula shall I write in cell I9? 17. I want to write a formula in cell J9 to compute the total Salaries expense, in rupees. The exchange rate shall be picked up from the cell H6. Which of the following formula will I apply? a. =$H$9/I9 b. =I9/G6 c. =I9*$H$6 d. =I9* H 6 Answer: 21
23 18. I want to write a formula in cell K9 to compute the average amount spent in rupees for Salaries every month during the period from July 2010 to December Which formula shall I write in cell K9? Answer: 19. Circle the appropriate symbol on the following Power Point application that starts slide show when clicked using mouse. 22
24 20. Refer to the figure below. I want to save my document file having *.doc extension as a PDF file, what option shall I select? Answer: 23
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