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
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Do not open this exam until told to do so.
Read all questions carefully before answering them.
This exam consists of four sections.
Each section of the exam has a time limit of 30 minutes, which may not be exceeded.
Please wait for the announcement before switching to the next section.
You are allowed to use calculator.
You may use ballpoint or pen to answer questions.
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%)
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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.
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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.
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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.
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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.
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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.
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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.
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Section 3
Data Response and Analytical Skills
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Instructions to Candidates:
You have 30 minutes to answer questions in this section.
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Question 1:
Table 1 shows that Pakistan’s population is projected to increase from 173.51 million in
2010 to 242.05 million by 2030.
Table 1. Population by Age Groups, Pakistan
Million Nos.
Age Group
2010
2015
2020
2025
2030
00 -04
21.81
22.76
23.28
22.44
20.35
05-09
20.17
21.33
22.35
22.95
22.18
10-14
20.19
20.07
21.24
22.28
22.88
15-19
19.88
20.12
20.01
21.19
22.24
20-24
17.22
19.80
20.05
19.95
21.14
25-29
14.81
17.13
19.71
19.98
19.89
30-34
12.50
14.72
17.04
19.62
19.91
35-39
10.49
12.40
14.62
16.94
19.53
40-44
8.64
10.36
12.27
14.49
16.81
45-49
7.09
8.49
10.20
12.01
14.31
50-54
5.81
6.88
8.26
9.95
11.84
55-59
4.68
5.53
6.57
7.93
9.60
60-64
3.64
4.31
5.13
6.14
7.45
65+
6.60
7.82
9.39
11.39
13.93
Total
173.51
191.71
210.13
227.35
242.05
Source: Government of Pakistan (2011). Pakistan Economic Survey, 2010-11, 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?
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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 1990-91 to 2009-10.
Table 2. Average retail price of wheat in Pakistan
1990-91
2000-01
2007-08
2009-10
CPI
43.20
100.00
158.90
214.41
Price of wheat per kg (Rs.)
3.07
8.67
16.44
25.40
a) Calculate real price of wheat in 2009-10 in constant 2000-01 rupee? Do you find
that after correcting for inflation wheat was more expensive in 2000-01 than in
2009-10?
b) In real terms, was wheat more expensive in 2009-10 than in 2007-08?
c) Also calculate real price of wheat in 2007-08 in constant 1990-91 prices. Was wheat
more expensive in 1990-91 than in 2007-08?
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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.
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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’?
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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:
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8. In the following figure ‘Deleted Items’, ‘Drafts’, and ‘Junk E-Mail’ 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 email message from my Inbox by clicking the mouse over the delete symbol, how
can I recover that message?
a.
b.
c.
d.
Look into the ‘Junk E-Mail’ folder, and move it to ‘Inbox’ folder
Look into the ‘Deleted Items’ folder, and move it to ‘Inbox’ folder
Look into the ‘Drafts’ folder, and move it to ‘Inbox’ folder
Look into the ‘Sent Items’ folder, and move it to ‘Inbox’ folder
Answer:
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10. Surraya sent an email 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:
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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 emails contains a common string “[Kat’s Eye Group]”. What is the purpose
of this string?
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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 email addresses?
a. Required
b. Optional
c. Resources
d. Attachments
Answer:
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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 2010. 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:
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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 2010. 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.
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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:
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