1. What is demand?
А) Demand is one of the most fundamental concepts of economics and it is the backbone of a market economy.
B) Demand refers to how much (quantity) of a product or service is desired by buyers.
С) In market economy theories, demand and supply theory will allocate resources in the most efficient way possible.
D) The correlation between price and how much of a good or service is supplied to the market is known as the supply relationship.
E) The relationship between price and quantity demanded is known as the demand relationship.
2. What is the balance of trade?
A) Trade happens because people need or want things that they don't have.
B) They earn money from these sales and then can buy the things that they themselves need and cannot produce on their own.
C) The difference between what a country exports and what it imports is called the balance of trade.
D) Even though many nations have a lot of different goods to export there are countries that depend only on one or two products to get money.
E) The biggest exporting nations are The United States, France, Germany, the United Kingdom, Canada and Japan.
3. What does government forbid?
A) In some countries the government controls all trade and in others it allows companies and firms to trade freely.
B) Governments pass laws to prevent companies from becoming too strong and powerful and from controlling the market.
C) Many governments try to help their own industries by making it more difficult to import foreign products.
D) Sometimes a government forbids companies to buy or sell dangerous or illegal products, or military technology.
E) A government may also limit the number of products that it will buy from another nation.

4. What is the basic idea of international trade?

A) The main difference between domestic and international trade is the use of foreign currencies to pay for the goods and services crossing international borders.
B) The basic idea of international trade is simple – each country produces goods or services that can be either consumed at home or exported to other countries.
C) Whenever a country imports or exports goods and services, there is a resulting flow of funds: money returns to the exporting nation and money flows out of the importing nation.
D) Trade and investment is a two-way street and with a minimum of trade barriers, international trade and investment usually makes everyone better off.
E) In an interlinked global economy, consumers are given the opportunity to buy the best products at the best prices.

5. What was the idea to make travel with gold less dangerous?

A) To make travelling with gold less dangerous, goldsmiths, or people who made jewelry and other items out of gold, came up with an idea.
B) These promissory notes were the beginning of paper money in Europe.
C) If you look at a British bank note today, you'll see it still says: I promise to pay the bearer on demand the sum of twenty pounds.
D) Paper money was adopted in Europe much later than in Asia and the Arab world - primarily because Europe didn't have paper.
E) The goldsmiths started writing out notes on pieces of paper that said the person who had the note could trade the note in for gold.

6. What does branding mean?

A) Brands have been used as marks of identification at some time in all countries and civilizations.
B) For over 4,000 years, brands have been used for identification on both livestock and humans.
C) This was an early commercial explanation of what we now know as branding.
D) Around 1900, James Walter Thompson published a house ad explaining trademark advertising
E) This began the practice we now know as ―branding‖ today, where the consumers buy ―the brand instead of the product.

7. What is franchising?

A) Many hotel, motel, gas station, and fast-food chains are franchises
B) Franchising is another form of business - often between a big firm and a sole proprietor.
C) A big firm may decide that it wants to expand without investing large amounts of capital.
D) The franchiser must be very careful in selecting franchisees.
E) A few people are finally chosen who have the necessary capital and the right qualities.

8. What industries must protect public health?

A) Supermarkets buy food in such large quantities that often they can sell it for less money than the small privately owned grocery stores.
B) Many stores offer trading stamps, which may be exchanged for merchandise.
C) Food and drug laws regulate the purity of foods and the way they are handled and labeled.
D) The purpose of these laws is to make certain that the public will have good, safe, unadulterated food that is not misrepresented in any way.
E) To safeguard the public health, the governments and food industries of many countries have set up strict controls over the processing and grading of all kinds of food.