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Unit 5: Dynamics of Modern Econ - M/C #1

Total questions: 35

Worksheet time: 19mins

Name
Class
Date
1.

Which reason BEST explains why countries trade with one another?

a)

To avoid relying on any other nation

b)

To become completely self-sufficient

c)

To get goods they cannot produce efficiently on their own

d)

To increase the number of tariffs they can charge

2.

If the U.S. depends on Canada for lumber and Canada depends on the U.S. for machinery, this relationship illustrates:

a)

Protectionism

b)

Interdependence

c)

Resource overproduction

d)

Reduced trade incentives

3.

A country that increases its income, job opportunities, and standard of living through global trade is experiencing:

a)

Price instability

b)

Prosperity

c)

Market saturation

d)

Depreciation

4.

Why do countries specialize in certain products instead of making everything themselves?

a)

It guarantees higher wages

b)

It allows them to focus on what they produce most efficiently

c)

It increases the cost of production

d)

It eliminates all trade barriers

5.

Country X can produce wheat at a lower opportunity cost than Country Y. What does this mean?

a)

Country X should stop all imports

b)

Country X has a comparative advantage in wheat

c)

Country Y should subsidize wheat production

d)

Country Y should become self-sufficient

6.

A nation with limited farmland but high demand for food is most affected by:

a)

Scarcity

b)

Surplus

c)

Trade embargoes

d)

Predictability

7.

A country invests heavily in new technology to produce goods faster and cheaper. This is an example of:

a)

Resource depletion

b)

Innovation

c)

Reduced specialization

d)

Institutional failure

8.

The U.S. buys coffee from Brazil because domestic coffee production is limited. This purchase is called:

a)

An export

b)

A tariff

c)

An import

d)

A subsidy

9.

Germany sells automobiles to multiple countries around the world. These sales are considered:

a)

Imports

b)

Exports

c)

Quotas

d)

Barriers

10.

A small business selling online internationally gains what advantage?

a)

It avoids competition

b)

It reaches far more buyers than in the domestic market alone

c)

It no longer needs to advertise

d)

It becomes exempt from trade rules

11.

When a tariff is placed on imported steel, what is MOST likely to happen?

a)

Imported steel becomes cheaper

b)

Domestic companies face fewer costs

c)

Prices of steel products may rise for consumers

d)

Global trade becomes completely unrestricted

12.

Strong institutional rules help trade because they:

a)

Eliminate every economic risk

b)

Ensure predictable laws and enforcement for businesses

c)

Require every country to use the same currency

d)

Prevent companies from entering foreign markets

13.

A smartphone assembled in China using parts from Korea, Japan, and the U.S. illustrates:

a)

Free-trade elimination

b)

A global supply chain

c)

Domestic specialization

d)

Regional scarcity

14.

A consumer chooses a $4 soda over a free bottle of water because it tastes better. This choice reflects:

a)

Loss aversion

b)

Utility

c)

Opportunity cost

d)

Interdependence

15.

A country that only allows trade with its immediate neighbors is practicing:

a)

Free trade

b)

Limited trade

c)

Interdependence

d)

Protectionism

16.

A long stretch of rising stock prices and strong investor confidence describes:

a)

A bull market

b)

A trough

c)

A recession

d)

A contraction

17.

When stock prices fall and investors grow cautious, the market is in:

a)

Peak

b)

Bull territory

c)

Bear territory

d)

Expansion

18.

A stock whose price jumps up and down frequently is showing high:

a)

Volume

b)

Scarcity

c)

Volatility

d)

Utility

19.

Real GDP helps measure:

a)

A company’s stock value

b)

Total economic output, adjusted for price changes

c)

The number of goods a country imports

d)

Investor confidence

20.

If millions of shares of a company are traded in one day, this reflects high:

a)

Volatility

b)

Volume

c)

Innovation

d)

Utility

21.

A sudden fear reaction while deciding whether to buy something is triggered by the:

a)

Hippocampus

b)

Hypothalamus

c)

Amygdala

d)

Prefrontal cortex

22.

Which brain part helps someone slow down and make a logical financial decision?

a)

Amygdala

b)

Prefrontal cortex

c)

Hypothalamus

d)

Cingulate gyrus

23.

Feeling hungry while shopping and suddenly wanting snacks relates to the:

a)

Hippocampus

b)

Hypothalamus

c)

Amygdala

d)

Cingulate gyrus

24.

Remembering a past purchase mistake that affects today’s decision involves the:

a)

Hippocampus

b)

Amygdala

c)

Prefrontal cortex

d)

Hypothalamus

25.

Seeing a shirt marked “Originally $80 — Now $40!” makes the deal look better because of:

a)

Framing

b)

Anchoring

c)

Loss aversion

d)

Social proof

26.

Someone refusing to sell a used item for a fair price because they “value it more” is showing:

a)

Herd mentality

b)

Endowment effect

c)

Nudging

d)

Confirmation bias

27.

People choosing a yogurt labeled “90% fat-free” instead of “10% fat” demonstrate:

a)

Framing effect

b)

Recency effect

c)

Status quo bias

d)

Choice architecture

28.

Buying a product simply because everyone else is buying it is an example of:

a)

Loss aversion

b)

Herd mentality

c)

Utility maximization

d)

Confirmation bias

29.

An investor avoiding a risky stock because they fear losing money more than gaining money shows:

a)

Sunk cost fallacy

b)

Loss aversion

c)

Recency effect

d)

Framing

30.

Choosing a restaurant because it has a huge crowd out front demonstrates:

a)

Status quo bias

b)

Endowment effect

c)

Social proof

d)

Opportunity cost

31.

Pick the right options in the dropdown below.

 

​ (a)   are goods that are sold to another country while ​ (b)   are goods that are bought from another country.

Choose from the below words

Exports

imports

labor

currency

32.

Trading between countries is ​ (a)   trade.

Choose from the below words

international

importing

exporting

pound

trading

33.

Match the correct Word to it's definition.

a)

goods or materials that are shipped to other nations to be sold

1.

Export

b)

goods or materials that are brought into a nation from abroad

2.

Import

c)

​a tax levied on a particular type of import or export

3.

Tariff

34.

When countries rely on each other for resources, goods, or services. 

a)

Specialization

b)

Interdependence

c)

Scarcity

d)

Trade

35.

Which Term? - To sell goods to another country.

a)

Import

b)

Exit

c)

Export

d)

Compromise