Question 1

The _____ is responsible for proposing EU legislation, implementing it, and monitoring compliance with EU laws by member states.

Accepted Answer

A)   European Parliament
B)   European Commission
C)   Council of the European Union
D)   Court of JusticeE) B) and C)
F) None of the above

Question 2

The establishment of the euro required participating countries to give up their monetary policy.

Accepted Answer

A) True 
 B)False

Question 3

Because of the fact that everyone benefits from economic integration, it is easy to achieve and sustain.

Accepted Answer

A) True 
 B)False

Question 4

The Single European Act committed EU countries to adopting a common currency by January 1, 1999.

Accepted Answer

A) True 
 B)False

Question 5

The ultimate controlling unit within the EU is the European Council.

Accepted Answer

A) True 
 B)False

Question 6

Discuss the trend toward increased regional economic integration.

Accepted Answer

In recent years, there has been a strong...

Question 7

Discuss the economic case for economic integration. How does it relate to trade theory?

Accepted Answer

Economic theories of international trade...

Question 8

Which of the following is the most frequently aired objection to free trade in Africa?

Accepted Answer

A)   These economies are too small for free trade to exist.
B)   These countries are not ready for a full-fledged political union with a common currency.
C)   They need to be "protected" by tariff barriers from unfair foreign competition.
D)   The larger nations like South Africa and Kenya stand much to lose from free trade and competition.E) B) and C)
F) All of the above

Question 9

A common market has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following observations is not true of the euro?

Accepted Answer

A)   It is used by all member states of the European Union.
B)   It required participating countries to give up their own currencies.
C)   It required participating countries to give up control over monetary policy.
D)   By adopting it, the EU created the second most widely traded currency in the world.E) A) and C)
F) B) and C)

Question 11

What has been the most significant impact of NAFTA?

Accepted Answer

A)   Its economic effects
B)   Its political effects
C)   Its psychological effects
D)   Its social effectsE) All of the above
F) B) and D)

Question 12

Which of the following is seen as a disadvantage of the euro?

Accepted Answer

A)   Higher foreign exchange and hedging costs
B)   National authorities losing control over monetary policy
C)   It becomes difficult to compare prices across Europe
D)   It undermines the development of a pan-European capital marketE) A) and B)
F) C) and D)

Question 13

Describe the state of economic integration in Africa. What factors have hindered the process?

Accepted Answer

There have been efforts to establish a t...

Question 14

A central reason for the establishment of the EU was the devastation of Western Europe during two world wars and the desire for a lasting peace.

Accepted Answer

A) True 
 B)False

Question 15

To ensure that a free trade agreement does not result in trade diversion, which of the following has to come within the scope of WTO?

Accepted Answer

A)   Nontariff barriers
B)   Services
C)   Energy markets
D)   Tax ratesE) A) and B)
F) B) and C)

Question 16

Mercosur originated as a(n)  _____ between Brazil and Argentina in 1988.

Accepted Answer

A)   common market
B)   free trade pact
C)   customs union
D)   economic unionE) B) and D)
F) C) and D)

Question 17

Once barriers to trade and investment are removed, companies can treat a group of integrated countries like the EU as a single market and produce standardized products for it.

Accepted Answer

A) True 
 B)False

Question 18

Which feature of an economic union differentiates it from a common market?

Accepted Answer

A)   Free flow of products and factors of production between member countries
B)   A common monetary and fiscal policy
C)   A common external trade policy toward nonmembers
D)   Ability of factors of production to move freely between membersE) None of the above
F) A) and C)

Question 19

Coordination and policy harmonization problems are largely a function of the number of countries that seek agreement.

Accepted Answer

A) True 
 B)False

Question 20

In a customs union, trade barriers are eliminated among member countries, and each country maintains its own external trade polices with nonmember countries.

Accepted Answer

A) True 
 B)False

Exam 9: Regional Economic Integration

Which of the following observations is not true of the euro?

Correct AnswerverifiedShow Answer

In a customs union, trade barriers are eliminated among member countries, and each country maintains its own external trade polices with nonmember countries.

Correct AnswerverifiedShow Answer

Describe the state of economic integration in Africa. What factors have hindered the process?

Correct AnswerverifiedThere have been efforts to establish a t...View AnswerShow Answer

What has been the most significant impact of NAFTA?

Correct AnswerverifiedShow Answer

The establishment of the euro required participating countries to give up their monetary policy.

Correct AnswerverifiedShow Answer

Once barriers to trade and investment are removed, companies can treat a group of integrated countries like the EU as a single market and produce standardized products for it.

Correct AnswerverifiedShow Answer

Which of the following is seen as a disadvantage of the euro?

Correct AnswerverifiedShow Answer

Which of the following is the most frequently aired objection to free trade in Africa?

Correct AnswerverifiedShow Answer

Discuss the trend toward increased regional economic integration.

Correct AnswerverifiedIn recent years, there has been a strong...View AnswerShow Answer

To ensure that a free trade agreement does not result in trade diversion, which of the following has to come within the scope of WTO?

Correct AnswerverifiedShow Answer

A common market has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members.

Correct AnswerverifiedShow Answer

Coordination and policy harmonization problems are largely a function of the number of countries that seek agreement.

Correct AnswerverifiedShow Answer

Which feature of an economic union differentiates it from a common market?

Correct AnswerverifiedShow Answer

The ultimate controlling unit within the EU is the European Council.

Correct AnswerverifiedShow Answer

Because of the fact that everyone benefits from economic integration, it is easy to achieve and sustain.

Correct AnswerverifiedShow Answer

The Single European Act committed EU countries to adopting a common currency by January 1, 1999.

Correct AnswerverifiedShow Answer

Discuss the economic case for economic integration. How does it relate to trade theory?

Correct AnswerverifiedEconomic theories of international trade...View AnswerShow Answer

A central reason for the establishment of the EU was the devastation of Western Europe during two world wars and the desire for a lasting peace.

Correct AnswerverifiedShow Answer

Mercosur originated as a(n) _____ between Brazil and Argentina in 1988.

Correct AnswerverifiedShow Answer

The _____ is responsible for proposing EU legislation, implementing it, and monitoring compliance with EU laws by member states.

Correct AnswerverifiedShow Answer

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There have been efforts to establish a t...
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In recent years, there has been a strong...
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Economic theories of international trade...
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