Econundrum Prelims
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This document provides guidelines for a quiz called "Econundrum Prelims" that contains 24 multiple choice and fill-in-the-blank questions. Some key details are that questions may have two parts worth 0.5 points each, the last 4 questions are part of a connected section, and hints will only be provided if less than 2 teams block them. The document then begins presenting the first question.
Econundrum Prelims
- 2. Rules 1. There are 24 questions. Each question is worth 1 point. 2. Some questions have 2 parts. Each part would then be considered worth 0.5 points. 3. Last 4 of the questions are part of a Grand Connect. Guidelines for the same will be provided later in the quiz. 4. Star marked questions are tie-breakers. 5. Hints will be provided only if less than 2 teams block hints for the respective question. 6. The quizmaster’s decision is final.
- 3. Q1. A __________ economy is an economy that is not so hot that it causes inflation and not so cold that it causes a recession. The term describes an economy that is operating in an optimal state by providing full employment and economic stability. Economists sometimes disagree on the characteristics of such economies , but it is frequently characterized by a low unemployment rate, increasing asset prices (stocks, real estate, etc.), low interest rates, brisk but steady GDP growth and low inflation. Fill in the blank.
- 4. Q2. X and Y explains the relationship between two goods that are important for a nation's long-term growth and stability. This classic example of the PPF defines the relationship and conflict between a nation's investment in the military, defense and civilian goods. Countries need to choose between two options when spending finite resources, either buying goods that benefit local citizenry or applying those resources to territorial expansion and security, allocating capital to military forces and equipment. These opposing priorities characterize a nation's choices and identity in first world societies. Id X and Y.
- 5. *Q 3. This model informs about a pricing tactic in which a dependent good is sold at a loss (or at cost) and a paired consumable good generates the profits. The pricing and marketing strategy is designed to generate reliable, recurring income by locking a consumer onto a platform or proprietary tool for a long period. It is often employed with consumable goods (The model itself gets its name from such a consumable good, used differently by men and women mostly). The concept is similar to the "freemium," in which digital products and services (such as email, games or messaging) are given away for free with the expectation of making money later on upgraded services or added features. Name the model.
- 6. Q4. A _____ bond is a bond issued by a Japanese issuer in a market outside Japan and denominated in a currency other than the yen. One could say that is similar to India’s masala bonds, but the only difference is that they are denominated in rupees. Fill in the Blank.
- 7. *Q5. ____ point is the point when an investor decides to sell even if the sale is not in their best financial interest. The phrase may also be used to describe the time an investor has realized they will be unable to recoup costs after the value of an asset has plummeted. They are said to ____at the occurrence, or even the thought of the occurrence. These sales often take place when an asset is plummeting in value and an investor wants to cut their losses before an even more significant depreciation occurs. Some shrewd investors may hold out until certain assets reach their ____ point, in the hopes that scared asset holders will sell them off at a reduced rate instead of holding onto them and waiting until they rebound.
- 8. Q6. Name the company being advertised.
- 9. Q7. Central European University, which teaches in English, has gained a reputation as one of the best universities in central and eastern Europe since it was founded in the early 1990s. However, this university has been recently pushed out by Hungarian government, and is now being relocated to Vienna. Name the founder, who has been named The Financial Times 2018 person of the year. He is also known as “the man who broke the Bank of England" by the London press.
- 10. Q8. Andre Sorkin’s book chronicled the events of the 2008 financial crisis and the collapse of Lehman Brothers from the point of view of Wall Street CEOs and US government regulators.The book was released on October 20, 2009 by Viking Press. The name of the book came from a phrase that is most often used to denote banks and firms that would substantially damage the financial system and the rest of the economy should they “fail”, i.e., go bankrupt. What’s the phrase?
- 11. Q9. Name this company’s controversial founder.
- 12. Q10. This Jeremy Irons -starrer takes place over a 24-hour period at a large Wall Street investment bank during the initial stages of the financial crisis of 2007–08. This movie’s name actually refers to a situation when an account’s value falls below the broker's required minimum value. Name the movie/term.
- 13. Q 11. This is a picture of an interesting marketing campaign of a movie, created at London Waterloo station. Which movie was it related to?
- 14. *Q12. Companies pay dearly to sponsor the World Cup. There’s no event more widely watched than this premier tournament—over 3 billion people tuned in in 2014—and FIFA, the sport’s governing body, was expected to generate around $1.6 billion in revenue from marketing this year’s cup. It has strict rules about unpaid marketing. Players themselves are not allowed to wear any products of companies that haven’t paid FIFA. If they do, they have to tape over logos, and hide it. In spite of Apple not paying FIFA for marketing their product, it still managed to create advertising for them, and ended up increasing their sales. How come?
- 15. Q13. A public transit system in Melbourne, Victoria, Australia faced a predicament. They had too many commuters not following the safety guidelines. They decided to try a new way to promote better behavior. The campaign had two parts, one of which was a song. They went viral through sharing and social media starting in November 2012. What did they do? What did the name their campaign?
- 16. *Q14* X was founded in 1931 by Americans Joan Gelb and her husband Lawrence M. Gelb, along with business partner and lifelong friend James Romeo, after discovering Y, a beautification trend while traveling in France. They started a campaign for the promotion of their company X, with the tagline posing the question, “does she or doesn't she?” In 1957, Y was a taboo subject, so the odds for the answer was “no” was 15:1. However, it stopped being such a taboo, and within 10 years, the odds went to 2:1. State X and Y.
- 17. Q15. These cars (top-right) were extremely popular in the 50s and the 60s, and got their name from their shape. A Swiss company has reinvented this whimsical, 1950s front-entry automobile with a modern twist. The modern-day ‘Microlino’ (bottom-right), is not classified as a car, but considered an L7e motorized quadricycle, which means you will pay less and it doesn’t have to meet the same stringent safety standards as regular cars. Micro Mobility Systems created ‘this little bug’ for city living, as it is ‘space-saving’, ‘stylish’ and aims to help drivers find a parking spot in the city without losing their minds. What was this car called?
- 18. Q16. X makes a ton of products, from clothes to food, and to showcase that they created their logo showcasing a variety of icons symbolizing some of their core products. It’s a fun way to show they have their hands in a variety of areas, and gives the viewer something to piece together. What is X?
- 19. Q17. A bull market is the condition of a financial market of a group of securities in which prices are rising or are expected to rise. A bear market, which is the opposite, is characterized by falling prices and typically shrouded in pessimism. However, bulls and bears aren't the only animals in financial markets. X refers to individuals who are fearful of the stock market and stay away. Their fear overrides their need to make profits so they stick to conservative instruments such as bonds, bank deposits or company deposits. On the other hand, the Y(s) embrace risk. They are impatient, willing to take a high risk, invest based on hot tips and want to make a quick buck in a hurry. These are the ones who burn their fingers and lose money in the market. “Bulls make money, bears make money, Y(s) get slaughtered”. State X and Y (both are part of the animal kingdom)
- 20. Q18. A Phillips curve shows the relationship between unemployment and inflation for a given region. Gregor Smith plotted the Phillips Curve for Japan, and then flipped the graph by the vertical axis. He then made a very silly conclusion. What did he conclude? (graphs in the following slide)
- 22. *Q19. In 2011, Norway had a crisis due to loss of supply of X, which is stocked in almost every Norwegian fridge. The problem started due to bad weather and irregular rains, and got exacerbated thanks to the protectionism surrounding this commodity, which restricted imports of this good. During Christmas, it rose from the normal price of 3.5$ to as high as 50$. Name X.
- 23. Q20. Records handed down from ancient Greek scribes document X occurring as far back as 500 B.C. At that time, women were sold off as wives and it was considered illegal to allow a daughter to be “sold” outside the X method. A “descending” method was used for these X, starting with a high price and going lower until the first person to bid was the purchaser, as long as the minimum price set by the seller was met. The buyer could get a return of money if he and his new spouse did not get along well. Women with special beauty were subject to the most vigorous bidding and the prices paid were high. Owners of the less attractive women had to add dowries or other monetary offers in order to make the sale. In Rome, Italy, X were popular for family estates and to sell war plunder. Roman Emperor and philosopher Marcus Aurelius sold family furniture at X, for months, to satisfy debts. State X.