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.
Open Question 5: After-COVID Inflation
Country AA implemented COVID-19 lockdown support by increasing subsidies, offering loans to businesses, and distributing funds to citizens. These measures aimed to support household and business incomes during a time when production was significantly reduced. The government financed this support by increasing public debt, issuing and selling more government bonds, including to foreign investors.
If no other policies are introduced, this government support during COVID-19 would increase inflation in Country AA.