WorksheetsUnit 5: Dynamics of Modern Econ - M/C #1
Total questions: 35
Worksheet time: 19mins
Which reason BEST explains why countries trade with one another?
To avoid relying on any other nation
To become completely self-sufficient
To get goods they cannot produce efficiently on their own
To increase the number of tariffs they can charge
If the U.S. depends on Canada for lumber and Canada depends on the U.S. for machinery, this relationship illustrates:
Protectionism
Interdependence
Resource overproduction
Reduced trade incentives
A country that increases its income, job opportunities, and standard of living through global trade is experiencing:
Price instability
Prosperity
Market saturation
Depreciation
Why do countries specialize in certain products instead of making everything themselves?
It guarantees higher wages
It allows them to focus on what they produce most efficiently
It increases the cost of production
It eliminates all trade barriers
Country X can produce wheat at a lower opportunity cost than Country Y. What does this mean?
Country X should stop all imports
Country X has a comparative advantage in wheat
Country Y should subsidize wheat production
Country Y should become self-sufficient
A nation with limited farmland but high demand for food is most affected by:
Scarcity
Surplus
Trade embargoes
Predictability
A country invests heavily in new technology to produce goods faster and cheaper. This is an example of:
Resource depletion
Innovation
Reduced specialization
Institutional failure
The U.S. buys coffee from Brazil because domestic coffee production is limited. This purchase is called:
An export
A tariff
An import
A subsidy
Germany sells automobiles to multiple countries around the world. These sales are considered:
Imports
Exports
Quotas
Barriers
A small business selling online internationally gains what advantage?
It avoids competition
It reaches far more buyers than in the domestic market alone
It no longer needs to advertise
It becomes exempt from trade rules
When a tariff is placed on imported steel, what is MOST likely to happen?
Imported steel becomes cheaper
Domestic companies face fewer costs
Prices of steel products may rise for consumers
Global trade becomes completely unrestricted
Strong institutional rules help trade because they:
Eliminate every economic risk
Ensure predictable laws and enforcement for businesses
Require every country to use the same currency
Prevent companies from entering foreign markets
A smartphone assembled in China using parts from Korea, Japan, and the U.S. illustrates:
Free-trade elimination
A global supply chain
Domestic specialization
Regional scarcity
A consumer chooses a $4 soda over a free bottle of water because it tastes better. This choice reflects:
Loss aversion
Utility
Opportunity cost
Interdependence
A country that only allows trade with its immediate neighbors is practicing:
Free trade
Limited trade
Interdependence
Protectionism
A long stretch of rising stock prices and strong investor confidence describes:
A bull market
A trough
A recession
A contraction
When stock prices fall and investors grow cautious, the market is in:
Peak
Bull territory
Bear territory
Expansion
A stock whose price jumps up and down frequently is showing high:
Volume
Scarcity
Volatility
Utility
Real GDP helps measure:
A company’s stock value
Total economic output, adjusted for price changes
The number of goods a country imports
Investor confidence
If millions of shares of a company are traded in one day, this reflects high:
Volatility
Volume
Innovation
Utility
A sudden fear reaction while deciding whether to buy something is triggered by the:
Hippocampus
Hypothalamus
Amygdala
Prefrontal cortex
Which brain part helps someone slow down and make a logical financial decision?
Amygdala
Prefrontal cortex
Hypothalamus
Cingulate gyrus
Feeling hungry while shopping and suddenly wanting snacks relates to the:
Hippocampus
Hypothalamus
Amygdala
Cingulate gyrus
Remembering a past purchase mistake that affects today’s decision involves the:
Hippocampus
Amygdala
Prefrontal cortex
Hypothalamus
Seeing a shirt marked “Originally $80 — Now $40!” makes the deal look better because of:
Framing
Anchoring
Loss aversion
Social proof
Someone refusing to sell a used item for a fair price because they “value it more” is showing:
Herd mentality
Endowment effect
Nudging
Confirmation bias
People choosing a yogurt labeled “90% fat-free” instead of “10% fat” demonstrate:
Framing effect
Recency effect
Status quo bias
Choice architecture
Buying a product simply because everyone else is buying it is an example of:
Loss aversion
Herd mentality
Utility maximization
Confirmation bias
An investor avoiding a risky stock because they fear losing money more than gaining money shows:
Sunk cost fallacy
Loss aversion
Recency effect
Framing
Choosing a restaurant because it has a huge crowd out front demonstrates:
Status quo bias
Endowment effect
Social proof
Opportunity cost
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.
Exports
imports
labor
currency
Trading between countries is (a) trade.
international
importing
exporting
pound
trading
Match the correct Word to it's definition.
goods or materials that are shipped to other nations to be sold
Export
goods or materials that are brought into a nation from abroad
Import
a tax levied on a particular type of import or export
Tariff
When countries rely on each other for resources, goods, or services.
Specialization
Interdependence
Scarcity
Trade
Which Term? - To sell goods to another country.
Import
Exit
Export
Compromise
