About

Although the teaching of economics and similar subjects might be very different, the tasks of the TEO will be composed in a way that facilitates equal competition. The tasks will not be aimed primarily at testing the knowledge of theory. A significant share of the tasks will be practical-oriented, test analytical skills and curiosity.

All tasks are individual and closed-book. A contestant may use a simple (non-programmable) pocket calculator and a dictionary for translating words. The dictionary must be clean — without any notes or extra sheets of paper in it. Smartphones and other devices are prohibited.

In accordance with Statute of the TEO, all tasks will be provided only in English. Contestants must provide their solutions in English.

The Economics topics discussed in the questions are the following:

— Economics principles and an economist’s worldview

— Microeconomics:

• Competitive markets (demand and supply, elasticities, equilibrium)

• Consumer’s choice

• Firm’s behavior

• Non-competitive markets 

• monopoly, oligopoly, monopolistic competition

• digital platforms & network effects

• pricing in the digital economy (freemium, bundling, personalized pricing, etc.)

• Government interventions in competitive and non-competitive markets

• Market failures (externalities, public goods, asymmetric information)

• Labor market

• Game theory: Nash equilibrium, cooperation and coordination problems, commitments, repeated games

• Innovations

— Macroeconomics:

• Macroeconomic data: measuring income, inflation and unemployment

• Technology and long-run growth

• Labor market

• AD-AS model

• Money and the role of banks

• Monetary and fiscal policy

• Economic fluctuations and crises

• Institutions and Inequality

— International economics:

• Specialization and gains from trade

• Protectionism: winners and losers

• Currencies, currency unions, exchange rates, and Interest rates parity

• Economics of the environment and sustainable development

— Frontiers and evidence in modern economics:

• major contemporary questions

• how economists use data; natural and field experiments.

The Finance topics discussed in the questions are the following:

• Financial Planning: Income, expenses, and debt management, financial goals. Budgeting.

• Banks and the Banking System: Financial institutions facilitating savings, credit, and payments. Deposits, loans, interest rates, the role of the central bank. 

• Saving Money: Setting aside money for future use, earning interest. Savings accounts, compound interest.

• Borrowing Money, Credit: Using borrowed funds with a promise to repay with interest. Credit cards, loans, credit score, interest rates. 

• Investment, Financial Instruments, and Risk Management: Allocating money to generate returns while managing risks. Time value of money. Stocks, bonds, diversification, risk vs. return, derivatives. 

• Insurance Contracts and Insurance Market: Risk management through financial protection against potential losses. Premiums, coverage, deductibles, liability. 

• Financial Fraud and Ponzi Schemes: Deceptive practices to steal money or assets. Phishing, pyramid schemes, Ponzi schemes, regulatory measures.

• Crowdfunding: Raising funds from many contributors for projects or causes. Platforms, donation-based, equity-based. 

• Cryptocurrencies: Digital currencies secured by cryptography and operating on blockchain. Cryptocurrencies, blockchain, volatility, decentralized finance.

Business case solution consists of several parts. Here are the competencies contestant should acquire, that will be evaluated by the jury, related to those parts:

• 1. Analytical thinking

     • The ability to structurally approach the solution of a complex business problem, correctly dividing it into streams (into directions within which the solution of the problem may lie)

     • As a rule, the team should divide the case into some large blocks, which, in turn, are further divided and so on to the level of specific problems. A good structure corresponds to the MECE principle (mutually exclusive, collectively exhaustive), that is, it covers all possible solutions, but each individual stream does not intersect with others.

  2. Conceptual thinking

     • The ability to build correct hypotheses based on the resulting structure, made by analysis. Here the team checks how ideas respond to the necessary request and correctly address these or other problems of the enterprise, the team also makes sure that these solutions are feasible and have a common and business sense.

  3. Quantitative thinking

     • No case can be solved without simple but fast calculations and more complex models that illustrate certain analyzes.

  4. Communication skills

     • The ability to correctly build a presentation and to answer questions.

Part 1: Multiple Choice Questions

• • 30 multiple choice questions; the overall time limit is 90 minutes. 

  • All 30 multiple choice questions will be graded (4 points for the correct answer, minus 1 point for the incorrect answer, zero points for no answer).

Part 2: Open Questions

• • 3 sections with 6 open questions; the overall time limit is 180 minutes.

  • Every problem is worth 30 points.

  • Students must choose at least one problem from each section. Solve no more than 4 problems out of 6. 

  • If students provide solutions for 5 or 6 problems, all of them will be commented by the Jury but only 4 will add to score. In this case, if students do not specify which to grade, the lower 4 grades will be included.

The final round is a business case study task and includes the oral presentation of the results. Presentations can be supported by slides or posters. The presentations should be in English.

Case study task lasts for 2 hour and 13 mins — 2 hour of preparation, 8 minutes of the presentation and 5 minutes for Q&A. Contestants are allowed to use their own personal computer. During the period of preparation, contestants may use any online and offline materials, but it is prohibited to contact other people or resort to AI for help. 

To analyze quantitative problems, we recommend you to become familiar with these mathematical skills:

• • Polynomial functions;

  • Sequences and series;

  • Permutation and Combination;

  • Probability and data analysis: average, medium, standard deviation, expected value, regression line, normal distribution;

  • Basic calculus.

• • Economics

    • The Economy 2.0: Microeconomics

    • The Economy 2.0: Macroeconomics

    • Principles of Economics by N. Gregory Mankiw

  • Finance

    • Personal Finance course by GFLEC

    • Money Smart for Young Adults curriculum

    • Personal Finance Curriculum by PWC

    • Khan Academy courses on finance: Personal finance

    • Khan Academy courses on finance: Finance and capital markets

  • Business case 

    • The Pyramid Principle, Barbara Minto

    • Crack the Case, David Ohrvall

    • The Trusted Advisor, D. Maister, C. Green, R. Galford

    • The McKinsey Way, Ethan Rasiel

    • Strategic Management, Thompson Strickland

    • The Fifth Discipline, Peter Senge

    • Thinking Fast and Slow, Daniel Kahneman

    • Case in Point, Marc Cosentino

    • BCG on Strategy, C. Stern, M. Deimler

    • Say It With Charts, Gene Zelazny

    • Unfolding the Napkin, Dan Roam

    • Visualize This, Nathan Yau

    • The Pyramid Principle, Barbara Minto

    • Slide:ology, Nancy Duarte

• • Sample test paper

  • Answer key