Quizzes

• Free trade is beneficial for most countries in terms of GDP, but the problem is that it can create groups of people in a country who cannot compete against more skilled or lower paid workers in other countries.
• Why are subsidies considered to be trade barriers?

  Because when the government gives financial help to a producer, then that producer can sell its products at lower prices and this makes the domestically produced good more attractive to consumers compared to products from other countries.
• What do we call the difference between a country's total earnings from exports and their total expenditure on imports?

  balance of payments
• Which is the trade barrier that involves a country producing and protecting goods that cost more to produce than the same goods made abroad?

  import substitution
• Why does imposing tariffs raise the price of goods on the market?

  Because the tariffs importers pay will be passed on to consumers.
• In the text , there are two trade theories mentioned that support free trade. One of them is comparative advantage. What is the other one called?

  new trade theory
• Tick the sentence that is NOT TRUE. Countries practice protectionism

  • to raise the gross domestic product 

  to protect infant industries

  to deter unfair competition

  to stop other countries using dumping prices in the home market

  to protect declining industries
• The positive impact of p______ is that domestic producers can sell more of their goods on the home market

  protectionism
• Tick the sentences that are NOT TRUE. The tremendous pace of globalisation has increased due to _______

  free trade without barriers

  containerization

  • protectionism 

  the comparative cost principle

  • the rise of the Chinese economy 

  the development in ICT

  the growth of multinationals and global brands
• Which is the trade barrier that raises the price to customers and at the same time contributes to the country's revenue?

  tariff
• After World War 2 trade was characterized by ...

  the liberalization of trade rules.
• The impossible situation in which a country is completely self-sufficient and has no foreign trade-

  autarky
• The difference between what a country receives and pays for its exports and imports of goods.

  balance of trade
• If Croatian insurance company provides an insurance cover for a German yacht, it is an example of ________

  Invisible import for Germany. 

  Invisible export for Croatia
• The country should specialize in the production of those goods and services that they can produce most cheaply.

  comparative cost principle
• New trade theory says:

  Firms producing more of the same good can achieve economies of scale. This allows them to lower their costs. If they keep producing those goods they can specialize, which makes them even more efficient producers of those goods. The good produced will get better and cheaper. Countries where such specialization happens benefit from trading with other countries that also specialize in the production of some goods.
• Comparative advantage means

  Countries which produce goods at a lower opportunity cost than other countries have comparative advantage.
• What do we call it when a government gives a tax break or other financial help to a producer to make it cheaper for that producer to produce?

  a subsidy
• Which is the trade barrier which imposes a limit on the quantity of a certain good entering the country?

  quota
• A business which sells goods online but in physical stores as well.

  click-and-mortar
• Which of these are ADVANTAGES that consumers enjoy when buying from retailers?

  You can buy goods in bulk.

  • Retailers are closer to where people live, it is more practical to shop there. 

  Retailers offer goods at lower prices than wholesalers.

  • You don't have to buy a 10 kg bag of sugar at a retailer, you can buy smaller amounts as well. 
  • You can buy a wider variety of goods at a retailer.
• The market for domestic trade is within the b_________ of the country.

  borders
• In a distribution channel the chain of businesses going from the producer to the consumer are called:

  middlemen

  intermediaries
• The distribution channel is a chain of businesses that goes from the manufacturer to the end ________ .

  consumer
• Which of these are ADVANTAGES of direct distribution channels? Select 3. 

  Lower start-up costs

  No direct contact with consumers

  Setting it up requires a big investment from the manufacturer

  • shorter 
  • developing a connection with the consumer 
  • they are less costly when it is all set up (once all delivery equipment has been bought)
• Buying apples on Dolac from the farmer who grew them is an example for:


  a direct distribution channel
• Which of these are intermediaries in a distribution channel? 

  manufacturer

  • authorized dealer
  • agent 

  producer

  • retailer 
  • distributor

  customs officer

  wholesaler 

  consumer

  wholeseller

  broker
• In what year was an institution called the European Union officially established?

  1993
• What is the main source of the European Union’s funding (more than 70%)?

  Contributions from Member States based on Gross National Income (GNI)
• Which agreement allows borderless travel among many European countries?

  Schengen Agreement
• Blue Book Traineeships is the European Commission program that offers 1800 paid, 5-month administrative or translation traineeships starting on 1 March or 1 October, where trainees gain hands-on experience in EU policymaking in a multicultural environment, and it is based primarily in Brussels and Luxembourg but also in Copenhagen, Grange, London, Warsaw, and Representations. Which of the following is not a requirement?

  • Work experience
• According to the representative democracy, the citizens of the Member States are directly represented in _______

  European Parliament
• In what year was the Eurovision Song Contest first broadcast?

  1956
• In terms of population, what is the largest city in the EU?

  Berlin, Germany
• Member States have to accept the whole body of the EU rights and obligations.

  acquis communitaire
• What was the EU name in 1951?

  the European Coal and Steel Community
• The  entity of the EU when the EU institutions hold authority above governments of the Member States.

  supranational
• How many stars are there on the European Flag?

  12
• Which Member State is the smallest in area?

  Malta
• The purpose of the establishing the ECSC was ______.

  • to avoid any conflict among the members
  • to foster economic cooperation 
  • to establish a common market for coal and steel 

  to form a huge single, internal market

  to form an economic and political union