Which phase of the business cycle? Businesses and investors panic.

They sell
riskier forms of investments (e.g., stocks) and buy investments which are
considered to be safer (e.g., bonds or gold). *
contraction
expansion
trough
peak

Which phase of the business cycle? Businesses are overly optimistic about
investments and take on too much risk to earn a profit. *
peak
expansion
trough
contraction

Which phase of the business cycle? Demand is higher than supply. *

expansion
trough
peak
contraction

After the economy ________ it takes years for it to _____ and reach the levels it
had before recession. *
peaks / bottoms out
bottoms out / peak
bottoms out / recover
recovers / bottom out

The synonym for the internal theory of the business cycle is the ____________
theory. (Be careful about the spelling!) *
endogenous

Which phase of the business cycle? A lot of people are out of jobs and don't have
extra income to spend. The GDP is at its lowest point. Prices go down to encourage
people to buy. This phase is eventually followed by a recovery. *
peak
trough
expansion
contraction

Schumpeter's term for a phase in an economy in which radical innovations destroy

established companies or industries: c___________ d_________ *
creative destruction
The economy constantly ______ and _______ in alternating priods as it constantly
strives to find an equilibrium and to work at full capacity. *
peaks / bottoms out
falls / contracts
expands / increases
expands / contracts

If demand exceeds supply, then the economy can ________ *

reach the trough
work at below its full potential
overheat
work at its full potential

Which phase of the business cycle? Businesses start hiring more people, wages
are rising. *
contraction
expansion
peak
trough

External theories about the business cycle say that a new business cycle phase
can start due to … (Select 6) *
4/4
the baby boom generation reaching retirement age
pandemics
the increased use of AI instead of workers in factories
natural disasters
wars
stock market crashes
governments increasing their spending before elections
an economic bubble, e.g., the housing bubble

International trade
13 od 27 bodova

The country should specialize in the production of those goods and services that
they can produce most cheaply. *
opportunity cost principle
comparative cost principle
comparative advantage
absolute advantage

True or false? 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. *
True
False

The impossible situation in which a country is completely self-sufficient and has no

foreign trade- *
counter-trade
autarky
dumping
embargo

Why does imposing tariffs raise the price of goods on the market? *
Because the tariffs importers pay will be passed on to consumers.
Because the country whose goods we tax will also impose tariffs on our goods.
Because tariffs restrict the number of goods entering the country.

Which is the trade barrier that involves a country producing and protecting goods
that cost more to produce than the same goods made abroad? *
subsidy
import substitution
trade sanction
export substitution

If Croatian insurance company provides an insurance cover for a German yacht, it

is an example of ________.Tick 2 correct answers. *
Invisible export for Croatia
Invisible import for Germany.
Invisible export for germany
Visible export for Germany
Visible export for Croatia
Invisible import for Croatia

Comparative advantage means: *

When we produce more goods, we achieve economies of scale which allows us to lower our
costs. This is the country's comparative advantage.
Countries which produce goods at a lower opportunity cost than other countries have
comparative advantage.

Fill in the missing word: The positive impact of p______ is that domestic producers
can sell more of their goods on the home market. (Write the FULL word, using only
lower case letters.) *
protectionism
Tick the sentences that are NOT TRUE. The tremendous pace of globalisation has
increased due to _______ *
free trade without barriers
the rise of the Chinese economy
the comparative cost principle
protectionism
conteinerization
the development in ICT
the growth of multinationals and global brands

What do we call the difference between a country's total earnings from exports and
their total expenditure on imports? *
balance of trade
balance
balance of payments

FABSCRAP provides clients with a report on how much textile waste they generate.
This report is then used to *
order less textile
reduce tax to be paid
reduce waste next year
make fewer collections
charge more for their clothes

Which is the trade barrier that raises the price to customers and at the same time
contributes to the country's revenue? *
quota
tariff
tarrif
quote

Which is the trade barrier which imposes a limit on the quantity of a certain good
entering the country? *
quota
quote
trade sanction
balance

The difference between what a country receives and pays for its exports and
imports of goods. *
comparative cost principle
balance of payments
balance of trade
new trade theory
economies of scale
Why are subsidies considered to be trade barriers? *
When a government subsidises a product that is produced in the country, it also forbids the
import of that good from other countries.

Because when the government gives financial help to a producer, then that producer can sell
its products at lower prices and this makes the domesticall y produced good more attractive to
consumers compared to products from other countries.

New trade theory says: *

Countries should produce goods which they have a lower opportunity cost producing.
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.

Tick the sentence that is NOT TRUE. Countries practice protectionism _____ *
to protect infant industries
to protect declining industries
to raise the gross domestic product
to stop other countries using dumping prices in the home market
to deter unfair competition

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 quota
a tariff
a subsidy

The post-pandemic world, according to the economic forecast, will become less
global and more local with the following trends in progress: *
Tick three terms.
nationalization
localization
socialization
denationalization
regionalization
privatization

Točan odgovor
regionalization
nationalization
localization
In the text (RB, p. 51), there are two trade theories mentioned that support free
trade. One of them is comparative advantage. What is the other one called? Use
ONLY lower case letters (small letters) *
new trade theory

After World War 2 trade was characterized by ... *

the liberalization of trade rules.
the imposing of more trade barriers.

What were the major blows to unfettered globalisation before the pandemic? *
Tick five sentences.

the construction of the wall between the US and Mexico to prevent the migrants from entering
the US
the Sars pandemic

the desire of a lot of countries to protect their declining industries

the financial crisis in 2008

the introduction of trade interventions such as tariffs and subsidies

the trade war between the US and China

Brexit
the rise of populist parties across the globe

the election of Trump in 2016

Distribution channels

Buying apples on Dolac from the farmer who grew them is an example for: *
a direct distribution channel
an indirect distribution channel

In a distribution channel the chain of businesses going from the producer to the
consumer are called: (Select all correct solutions.) *
intermediarys
chainstores
middlemen
middlemans
intermediaries
manufacturers
Which of these are ADVANTAGES of direct distribution channels? Select 3. (You
heard about this in the Investopedia video you had to watch.) *
developing a connection with the consumer
shorter
they are less costly when it is all set up (once all delivery equipment has been bought)
No direct contact with consumers
Setting it up requires a big investment from the manufacturer
Lower start-up costs

Which of these are ADVANTAGES that consumers enjoy when buying from
retailers? (Select 3) *
Retailers are closer to where people live, it is more practical to shop there.

You can buy goods in bulk.

You can buy a wider variety of goods at a retailer.

You don't have to buy a 10 kg bag of sugar at a retailer, you can buy smaller amounts as well.

Retailers offer goods at lower prices than wholesalers.

Which of these are intermediaries in a distribution channel? (Select all correct

solutions.) *
wholesaler

producer
customs officer
consumer
distributor
authorized dealer

retailer

wholeseller
broker

manufacturer
agent

The market for domestic trade is within the b_________ of the country. *
borders
The distribution channel is a chain of businesses that goes from the manufacturer
to the end ________ . (Enter the correct word) *
Consumer

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

e-talier
click-and-mortar
brick-and-mortar
 HOME ASSIGNMENT 1

Acquis communautaire is: *

the body of EU rights and obligations accepted by a state before joining the EU

all the benefits a country gets as a member of the EU

all the requirements a country has to meet as a member of the EU

all the laws that are common to all member countries

Točan odgovor

the body of EU rights and obligations accepted by a state before joining the EU

The European Union has conducted six rounds of enlargement. Why was the 2004 round notable? *

Several former Communist countries in Eastern Europe joined the European Union

Countries outside Europe joined the European Union for the first time

Several countries left the European Union at the same time as others joined

Točan odgovor

Several former Communist countries in Eastern Europe joined the European Union

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. If
you want to become eligible for this traineeship program, which of the following is not a
requirement? *
Very good knowledge if at least 2 EU languages of which one should be a working language (English,
French or German)

Work experience

A Bachelor degree minimum

No prior employment withing an EU institution or body of more than six weeks

Točan odgovor

Work experience
Croatia joined the EU in: *

2017

1999

1989

2013

Točan odgovor:

2013

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

Paris, France

Berlin, Germany

Madrid, Spain

Točan odgovor

Berlin, Germany

Reffering to the visual, you will say: "As you can see _____ the picture". *

at

on

in

Točan odgovor

In

Translate the following phrase into English: " A sada dajem riječ Petru". TICK the answer which is NOT
CORRECT. *

And now I'll turn the floor to Petar

An now I'll give word to Petar

And now over to Petar

Točan odgovor:
An now I'll give word to Petar
Members of which of the following European Union institutions are directly elected by citizens? *

European Commission

European Parliament

European Council

None of the above

Točan odgovor:

European Parliament

Which of the following is not a European Union institution? *

the European Commission

the Council of the European Union

the European Council

the European Central Bank

the European Parliament

the European Court of Human Rights

točan odgovor
the European Court of Human Rights

All the member states use Euro. *

No, only 19 member states use it. It is called Eurozone.

Yes, it is true.

Točan odgovor:

No, only 19 member states use it. It is called Eurozone.

The greatest achievements in more than 50 years of the EU are: *

Tick the answer that IS NOT CORRECT

increased living standard

common corrency, Euro, in all member states

peace, stability and prosperity

Option 6

mobility of the workforce

student mobility

Točan odgovor

common corrency, Euro, in all member states

What is the anthem of the European Union? *

Carmen (Bizet)

Ode to Joy (Beethoven)

Salzurg Symphony (Mozart)

Točan odgovor:

Ode to Joy (Beethoven)

The framework for the coordination of economic policies across the European Union, which is
monitored by the European Commission, is called: *

The European Economic Forum

The European Semester

The European Cohesion Policy

Točan odgovor: The European Semester

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

1/1

1951

1974

1993
2004

Točan odgovor: 1993

Most of the EU budget 2014-2020 amounting to €1087 billion (39%), unanimously approved by all
Member States and with the consent of the European Parliament, was spent on: *

Economic, social and territorial cohesion

Security and citizenship

Competitivenes for growth and jobs

Sustainable growth: Natural Rersources

Administration

Točan odgovor

Sustainable growth: Natural Rersources

Which of the following is not among political priorities of Ursula von der Leyen Commission in the
next 2019-2024 period? *

A European Green Deal

An economy that works for people

A Europe fit for the digital age

Promoting traditional and conservative values

Promoting our European way of life

A stronger Europe in the world

A new push for European democracy

Točan odgovor:

Promoting traditional and conservative values

How many stars are there on the European Flag? *

15

12
 Točan odgovor:

12

If the European Union were a single country, it would have the ______ population of any country in
the world. *

largest

3rd largest

9th largest

14th largest

Točan odgovor:

3rd largest

The EU was created in order: *

Tick the answer that IS NOT CORRECT.

to prevent future countries between member states

for the countries to be economically interdependent

to introduce common currency, Euro, in the member states

to establish a common market for coal and steel

Točan odgovor:

to establish a common market for coal and steel

The Council of Europe, an international human rights organisation which includes 47 member states,
is another important EU organisation whose stated aim is to uphold human rights, democracy and the
rule of law in Europe, and it is the same as the European Council. *

1/1

YES

NO

Točan odgovor:
 NO

Referring to something interesting in your graph, you will say: "I'd like to _________ your attention to
the trend which..". *

drive

attract

grab

draw

Točan odgovor:

draw

When there is a lack of enthusiasm and motivation you deliver the presentation by _________ TICK all
the facts that are TRUE. *

using a powerful picture

using written register instead of spoken language

using full long sentences from the source on the slide

having not enough practice

having overcrowded slides

reading off the slides

letting slided take over

telling a personal story or an anecdote

Točan odgovor

reading off the slides

using written register instead of spoken language

having overcrowded slides

letting slided take over

 having not enough practice

using full long sentences from the source on the slide

The relations between the member countries are based on treaties, which are... *

imposed to other member states by the oldest member states

imposed to other member states by Germany

discussed and agreed by the member states

voted by the peoples of the member countries

točan odgovor

discussed and agreed by the member states

There are no additional roaming charges if you travel within the EU. *

YES

NO

Točan odgovor: YES

You would like to summerize at the end of each part in the body of your presentation. What
expressions you would NOT USE? Tick them all. *

To summerize

I would like to go on

I'd like to conclude with..

In conclusion

Let me elaborate on that a bit more before I move on

Let me deal next with

I'd like to recap

Točan odgovor:

Let me deal next with

Let me elaborate on that a bit more before I move on

I would like to go on
In 1957, six countries came together to form the original European Economic Community: France,
Germany, Belgium, Netherlands, Italy and which other? *

Liechtenstein

Austria

Luxembourg

Točan odgovor

Luxembourg

The European Central Bank (ECB), is the institution responsible for the management of
___________________. *

1/1

the euro and fiscal policy in the Eurozone of the European Union

the euro and monetary policy in the Eurozone of the European Union

the euro and trade policy in the Eurozone of theEuropean Union

točan odgovor
the euro and monetary policy in the Eurozone of the European Union

Which agreement allows borderless travel among many European countries? *

1/1

Treaty of Rome

London Consensus

Schengen Agreement

Treaty of Versailles

Točan odgovor:

Schengen Agreement
Both Finland and Norway are the members of the EU. *

YES

NO

Točan odgovor: NO

The functions of the conclusion of your presentation are the following: __________. Tick them all. *

Handle questions

Giving instructions about questions

Signal an end

Give your main conclusion

Outlining the structure of your presentation

Repeat your main points

Točan odgovor:

Handle questions

Signal an end

Give your main conclusion

Repeat your main points

Which European Union institution has the power to propose legislation? *

European Parliament

Council of the European Union

European Commission

None of the above

Točan odgovor:

European Commission
Which six countries were the founding members of the European Union (EU)? Belgium, France, Italy,
Luxembourg, the Netherlands & ... *

The UK

Spain

West Germany

Točan odgovor: West Germany

At the end of the presentation, you will say: ________ TICK the phrases which are NOT CORRECT. *

To conclude, I'd like to quote..

Moving on to my next point

In conclusion

Let me expand that a little before we go on.

To summarise, I'd like to repeat

Let me recap

That brings me to the end of our presentation

Točan odgovor

Moving on to my next point

Let me expand that a little before we go on

The _______ of my presentation is ..... *

subject

point

purpose

target

Točan odgovor
 subject

purpose

The EU 2020 Capital of Culture was: *

Venice

Rijeka

Vienna

Barcelona

Točan odgovor

Rijeka

What institution is considered the first step on the path of integration leading to today’s European
Union? *

European Financial Forum

European Energy Cooperation Agency

European Food Program

European Coal and Steel Community

Točan odgovor

European Coal and Steel Community

One of the roles of the European Commission is to act as the Guardian of of the Treaty, meaning that
it oversees the application of EU law under the supervision of the Court of Justice of the European
Union (the Court) and makes sure that the EU Member States must apply EU law correctly and timely.
Which EU Member State had the largest number of infringement cases in 2017? *

Spain

Croatia

Hungary

Italy

Točan odgovor

Italy
Tick all the expressions that you can use to signal the start of each new main messages in the body of
your presentation. *

Let's deal next with

moving on to my next part

Let me elaborate on that a bit more

What I want to do today

Let me recap

That brings me to

I would like to go on to

Now, if we turn to

Let me expand that a little before we go on

The subject of my talk is

Točan odgovor:

Let's deal next with

moving on to my next part

Let me elaborate on that a bit more

That brings me to

I would like to go on to

Now, if we turn to

Let me expand that a little before we go on

When did the Euro begin circulation? *

2002

1998

2008

Točan odgovor:

2002
Outlining the presentation you may use the following expressions. *

Tick the ones that ARE NOT CORRECT.

What I want to do today

I'd like to give you a brief overview of my presentation

Option 5

My presentation is divided into three parts

Next, I'll consider

Finally, I'll deal with

In my talk, I'd like to highlight....

First, I'll talk about

Točan odgovor

What I want to do today

In my talk, I'd like to highlight....

In which treaty was the name 'The European Union' first used? *

Paris

Maastricht

Amsterdam

Točan odgovor:

maastricht

Countries that are members of the Eurozone coordinate their *

Tick the answer that IS NOT CORRECT

justice system

economic policies

fiscal policies

monetary policies

Točan odgovor
 justice system

Free movement of goods, services and money in the EU is achieved thanks to... *

EEC

political union

the single market and customs union

Eurozone

Točan odgovor

the single market and customs union

When did the Euro begin circulation? *

2002

1998

2008

Točan odgovor

2002

The union changed its name into the European union in 1993 as the economic issues it had been
created around were expanded to the following issues: *

Tick the answer that IS NOT CORRECT

climate and environment

justice, security and migration

trade in coal and steel

external relations

Točan odgovor

trade in coal and steel

€405 billion was invested from European Structural and Investment Funds from 2014 – 2017. Which of
the following was not part of the accomplished results? *

284 000 new jobs created

1 million businesses supported

4.3 million more citizens with boradband access

2,700 km of reconstructed railroads

500 new hospitals and other health care institutions

4.5 million people receiving training opportunities through the European Social Fund

7.3 million people benefit from improved water supply

Točan odgovor

500 new hospitals and other health care institutions

Among many challenges the EU is facing today, we will mention a few. *

Tick the answers which are not tue.

common liberal values of the democratic society

erosion of democracy and rule of law in Poland and Hungary

Brexit

single market and customs union

decision-making process is slow and not transparent enough

lack of support of the richer countries when dealing with the debt of the poorer

huge public debts in the Eurozone

točan odgovor

common liberal values of the democratic society

single market and customs union

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

1951

1974

1993

2004
 Točan odgovor: 1993

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

Contributions from Member States based on VAT

Contributions from Member States based on Gross National Income (GNI)

Customs duties and other levies

Direct income tax on citizens of EU countries

Točan odgovor:

Contributions from Member States based on Gross National Income (GNI)

Borders are widely respected by mankind, but not by nature. The Danube is one of the main rivers of
Europe. Which countries of the European Union does it run through? *

Germany, Austria, Slovakia, Croatia, Hungary, Romania & Bulgaria

Germany, Austria, Slovakia, Hungary, Romania & Ukraine

Germany, Austria, Serbia, Hungary, Romania & Bulgaria

Germany, Austria, Slovakia, Croatia, Hungary, Serbia & Bulgaria

Točan odgovor

Germany, Austria, Slovakia, Croatia, Hungary, Serbia & Bulgaria

The gross domestic product (GDP) of the European Union’s twenty-eight countries—a measure of the
overall size of the economy—is roughly ______ the GDP of the United States. *

Half

90 percent

Double

Three times

Točan odgovor

90 percent
If you have a difficult question to handle, you can say politely the following phrases. TICK them all. *

I'm glad you asked about..

I'm afraid I don't have that information with me..

I don't know that off the top of my hat.

I'm afraid I don't see the connection.

To be honest, I think that raises a different issue.

Točan odgovor:

I'm afraid I don't have that information with me..

I don't know that off the top of my hat.

The EU has 27 Member States, more than 512.4 (in 2018) million people and how many official
languages? *

24

15

27

Točan odgovor: 24

Bringing your presentation alive, you can start with the following: _______. TICK all the phrases that
are correct. *

The purpose of my talk is

My presentation is divided into four parts

Can you raise your hand if you are..?

Have you ever considered..?

Ask a person next to you if she/he has ever considered..?

How many of you know?

How many people here like?

I'd like to give you a brief overview of my presentation

 Točan odgovor:

Can you raise your hand if you are..?

Have you ever considered..?

Ask a person next to you if she/he has ever considered..?

How many of you know?

How many people here like?

Coming full circle at the end of your presentation, you ____________ *

TICK the

refer back to the beginning of your presentation

announce the conclusion

call for action

thank the audience and ask for questions

recap the main messages

Točan odgovor

refer back to the beginning of your presentation

Which Member State is the smallest in area? *

Malta

Vatican City

Latvia

točan odgovor: Malta

Which European Union institution brings together the heads of state and government—such as
presidents and prime ministers—of EU member countries? *

European Council

Council of Europe
Council of the European Union

European Commission

Točan odgovor

European Council

Which of the following EU programs are particularly interesting for university graduates? *

Blue Book Traineeships

the EU Youth Dialogue

Erasmus Plus

eTwinning

Točan odgovor

Blue Book Traineeships

Which Croatian politician is the only Commissioner (Democracy and Demography) in The College of
Commissioners led by the Commission President, Ursula von der Leyen? *

Tonino Picula

Marija Pejčinović Burić

Biljana Borzan

Dubravka Šuica

Točan odgovor:

Dubravka Šuica

French is not an official language in which of the following EU countries? *

Belgium

Malta

Luxembourg

Točan odgovor:
Malta