Welcome to English Corner
This is part of the English-language corner of the website - a space with different formats of English-language economics content: terms and articles, vocabulary trainers, tests, and materials for the international ("межнар") track. Below is one example of such a task, in the "качественная задача" (case/open-question) format used in international olympiads.
About this business task
This task is adapted from the International Economics Olympiad (IEO) 2026, Economics and Finance Open Questions section. The IEO is the world's largest annual economics and finance competition for high school students, held in a different host country each year, and one of the recognized international ("межнар") tracks that students who succeed at the All-Russian Olympiad in Economics can go on to compete in.
This particular question tests whether you can apply core location-theory and externality concepts to an unusual, real-world-flavored scenario - deciding whether to build an AI computing facility on Earth or in orbit. It combines conceptual reasoning (parts a, c, d) with straightforward quantitative comparison (part b), which is typical of the IEO's Open Question format: you're expected to explain your economic logic, not just produce a number.
Work through each part in order. Try to write a full argument before checking the solution - many points in the real marking scheme are awarded for reasoning, not just the final answer.
Question 3. "Central Bank Cryptocurrency" (30 raw points)
Imagine a small country IEOnia, in which the Central Bank has abandoned its old national currency with a substantial share of cash and introduced a new virtual sovereign currency based on blockchain. The new system is cashless, and all other (private) currencies are prohibited. Instead of holding cash, every person and every firm has a digital wallet operated by the Central Bank. The money in this wallet can be disposed of freely; the Central Bank may set an interest rate for the money in the wallet. The commercial banks' sector in the economy is highly competitive.
In this task, you are asked to discuss the possible features of the IEOnian economy.