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# 2012

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## Section 1 Sample Questions Questions 1 to 3 are based on the following chart:

Each year, Tom predicts a price for a particular share for the next 5 years. So for instance, in 2004, he predicted that in 2007, the price would be approximately \$3.60. Similarly, in 2008, he predicted that the price in 2014 would be \$3.60. Predictions after 2014 are not shown on the diagram.

## Change in predicted price from 2004 to 2011

\$4.50 \$4.00 Estimated Price (A\$) \$3.50 \$3.00 \$2.50 \$2.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Predicted Year 2004 2005 2006 2007 2008 2009 2010 2011

1. Toms prediction for the price in 2013 in 2009 is approximately: a. \$4.10 b. \$3.10 c. \$2.90 d. \$2.70 2. Looking at the graph, it can be said with the most certainty that Tom was more optimistic about the share price: a. In 2004 compared to 2008 b. In 2007 compared to 2006 c. In 2011 compared to 2010 d. In 2006 compared to 2005 3. Tom has been predicting the share price at 2012 since 2006. Approximately how much higher/lower is his prediction in 2010 compared to his 2006 prediction? a. \$1.40 higher b. \$0.90 lower c. \$0.60 lower d. \$1.00 lower

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Questions 4 to 7 refer to the following information Game theory is the study of players and strategies in a given game. According to game theory: All players in a game want the best possible outcomes for themselves. A dominant strategy is a strategy that a player will choose regardless of what the other player chooses. A dominated strategy is any strategy other than the dominant strategy. A prisoners dilemma situation results when both players choose their dominant strategy, but would actually have received a higher gain if both of them had chosen their dominated strategy. The following is an illustration of a prisoners dilemma scenario: Two prisoners, A and B have been caught by the police, but the police do not know which one of them committed the murder. Both prisoners are completely selfish. The two prisoners have been put into separate rooms, cannot negotiate, and told that: If one prisoner accused the other and the other remained silent, the one who remains silent will be sentenced to death while the other is set free. If they both accuse, they will both get 10 years as the police will assume that they are both guilty. If they both stay silent, the police will have nothing, and the evidence at hand will only be enough to keep them in jail for one year. This scenario is shown in the table below. The first quoted sentence (in brackets) is that of prisoner A, and the second one quoted is for Prisoner B.

Prisoner B

Strategies
Prisoner A

## Stay Silent Accuse the other

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A Nash equilibrium is the set of strategies, such that, if they are both used, neither player would be willing to change their strategy. A collusive equilibrium is set of strategies that would lead to the overall best outcomes for the players if they colluded. 4. Which of the following is true? a. The dominated strategy for Prisoner A is to accuse Prisoner B b. Neither player has a dominant strategy as their strategy depends on what the other prisoner chooses c. The Nash equilibrium is for both prisoners to accuse. d. If Prisoner A decided to remain silent and Prisoner B found out about this before making his choice, Prisoner B would also decide to remain silent 5. Where is the collusive equilibrium? a. Both prisoners accuse each other b. Prisoner A accuses Prisoner B, who remains silent c. Prisoner B accuses Prisoner A, would remains silent d. Both prisoners remain silent 6. In which of these situations would a prisoners dilemma most likely result? (Assume both players are selfish and cannot negotiate with the other. Both players want the highest gain) a. A game of chess b. Rock paper scissors c. Students studying for the UMAT d. A loud party next door to an elderly couple who need rest Pepsi and Coca Cola are rival companies. Neither company wants to lower their price as it would result in lower profits. However, if one company lowers their price and the other company does not, then the company that lowers their price will get all the customers and make greater profits overall. Unfortunately, if both companies lower their price, they will both suffer lower profits. Similarly, if both companies keep their prices the same, they will both enjoy higher profits. 7. Which of the following is true? a. Lowering the price is the dominant strategy for Pepsi b. There is no collusive equilibrium c. Coca Cola does not have a dominated strategy d. Keeping price the same is the dominant strategy for Coca Cola

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## Section 2 Sample Questions

Questions 1 to 6 refer to the following extract from The Way We Live Now, by Anthony

Trollope I dont think I will sign them. Why not sign them? You cant really suppose that the property is your own. You could not even get it if you did think so. I dont know how that may be; but I had rather not sign them. If I am to be married, I ought not to sign anything except what he tells me. He has no authority over you yet. I have authority over you. Marie, do not give more trouble. I am very much pressed for time. Let me call in Mr Croll. No, papa, she said. Then came across his brow that look which had probably first induced Marie to declare that she would endure to be cut to pieces, rather than to yield in this or that direction. The lower jaw squared itself, and the teeth became set, and the nostrils of his nose became extended, and Marie began to prepare herself to be cut to pieces. But he reminded himself that there was another game which he had proposed to play before he resorted to anger and violence. He would tell her how much depended on her compliance. Therefore he relaxed the frown, as well as he knew how, and softened his face towards her, and turned again to his work. I am sure, Marie, that you will not refuse to do this when I explain to you its importance to me. I must have that property for use in the city tomorrow, or I shall be ruined. The statement was very short, but the manner in which he made it was not without effect. Oh! shrieked his wife. It is true. These harpies have so beset me about the election that they have lowered the price of every stock in which I am concerned, and have brought the Mexican Railway so low that they cannot be sold at all. I dont like bringing my troubles home from the city; but on this occasion I cannot help it. The sum locked up here is very large, and I am compelled to use it. In point of fact it is necessary to save us from destruction. This he said, very slowly and with the utmost solemnity. But you told me just now you wanted it because I was going to be married, rejoined Marie. A liar has many points to his favour, but he has this against him, that unless he devote more time to the management of his lies than life will generally allow, he cannot make them tally. Melmotte was thrown back for a moment, and almost felt that the time for violence had come. He longed to be at her that he might shake the wickedness, and the folly, and the ingratitude out of her. But he once more condescended to argue and to explain. I think you misunderstood me, Marie. I meant you to understand that settlements must be made, and that of course I must get my own property back into my own hands before anything of that kind can be done. I tell you once more, my dear, that if you do not do as I bid you, so that I may use that property the first thing tomorrow, we are all ruined. Everything will be gone. This cant be gone, said Marie, nodding her head at the papers.

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Marie, do you wish to see me disgraced and ruined? I have done a great deal for you. You turned away the only person I ever cared for, said Marie. Marie, how can you be so wicked? Do as your papa bids you, said Madame Melmotte. No! said Melmotte. She does not care who is ruined, because we saved her from that reprobate. She will sign them now, said Madame Melmotte. No; I will not sign them, said Marie. If I am to be married to Lord Nidderdale as you all say, I am sure I ought to sign nothing without telling him. And if the property was once made to be mine, I dont think I ought to give it up again because papa says that he is going to be ruined. I think thats a reason for not giving it up again. 1. Marie can be best described as: a. Incisive b. Rebellious c. Unreasonable d. Intelligent 2. Melmotte, Maries father, can be best described as: a. Old-fashioned b. Uncaring c. Manipulative d. Cruel 3. When Marie says, I dont think I will sign them, she is likely to be feeling: a. Stubborn b. Defiant c. Upset d. Cautious 4. She would endure to be cut to pieces, rather than to yield in this or that direction. What aspect of Maries character is the author trying to convey here? a. Her bravery b. Her stubbornness c. Her sense of justice d. Her resentment towards her parents 5. I am sure, Marie, that you will not refuse to do this when I explain to you its importance to me. In saying this, Maries father is trying to: a. Make her feel guilty b. Threaten her c. Deceive her d. Appeal to her sense of fairness 6. Melmotte is likely to think that his daughter is being: a. Unreasonable b. Cunning c. Ungrateful d. Intelligent

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Section 3 Sample Questions 1. Arrange the following into a logical sequence and then pick the middle of the sequence:

## 2. Complete the image:

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3. Arrange the following into a logical sequence and then pick the middle of the sequence:

## 5. Complete the sequence: 8:12am 4:52pm 3:63am 2:48pm 0:15am ?

2:46pm A

6:21pm B

2:30am C

3:21pm D

1:14pm E

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Answers: Section 1 1. 2. 3. 4. 5. 6. 7. C B B C D C A

Section 2 1. 2. 3. 4. 5. 6. A C D B A C

Section 3 1. 2. 3. 4. 5. A C C D B

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