I think you're really getting a spattering of a few objectives in this question, such as:
- Identify correctly constructed package declarations, import statements, class declarations (of all forms including inner classes) interface declarations, method declarations (including the main method that is used to start execution of a class), variable declarations, and identifiers.
- Identify classes that correctly implement an interface where that interface is either java.lang.Runnable or a fully specified interface in the question.
- State the benefits of encapsulation in object oriented design and write code that implements tightly encapsulated classes and the relationships "is a" and "has a".
Personally, I'd suggest understanding everything on Val's exam - it's an excellent one (albeit much tougher than the real one).