Question 1

Briefly describe the benefits of the euro.

Accepted Answer

Europeans decided to establish a single ...

Question 2

Which of the following is a benefit of adopting the euro?

Accepted Answer

A)   The adoption of a common currency makes it easier to compare prices across Europe.
B)   The adoption of a common currency makes Europe an optimal currency area.
C)   The introduction of a common currency increases the range of investment options open only to institutions.
D)   The introduction of a common currency leads to higher prices which translate into substantial gains for European producers.
E)   The introduction of a common currency decreases competition because it has become easier for consumers to shop around.F) A) and E)
G) A) and D)

Question 3

A regional free trade agreement will benefit the world only if:

Accepted Answer

A)   it raises the standard of living in one of the member countries.
B)   the amount of trade it creates exceeds the amount it diverts.
C)   the currencies of the nations involved appreciates.
D)   the balance-of-trade situation remains stable in the region.
E)   it creates trade surplus for one of the countries involved.F) A) and D)
G) C) and E)

Question 4

The _____,which meets in Strasbourg,France,is primarily a consultative rather than a legislative body.It debates legislation proposed by the commission and forwarded to it by the council.

Accepted Answer

A)   European Parliament
B)   European Central Bank
C)   Court of Justice
D)   European Free Trade Association
E)   European CommunityF) A) and D)
G) A) and C)

Question 5

What are the objectives of the Single European Act?

Accepted Answer

The purpose of the Single European Act w...

Question 6

Which of the following is true regarding the establishment of the euro?

Accepted Answer

A)   Great Britain, Denmark, and Sweden were among the first countries to adopt the euro.
B)   Establishment of the euro did not require participating national governments to give up their own currencies.
C)   By adopting the euro, the European Union has created the second most widely traded currency in the world after that of the U.S. dollar.
D)   Establishment of the euro did not require participating national governments to give up national control over monetary policy.
E)   The governments of European countries routinely sacrifice national sovereignty for the greater good.F) B) and D)
G) C) and E)

Question 7

Which of the following are significant trade blocs in Europe?

Accepted Answer

A)   The European Union and the European Free Trade Association
B)   The European Federation and the European Trade Block
C)   The European Commission and the COMINTERN
D)   The European Federation and the European Trade Association
E)   The European Economic Community and the European FederationF) A) and B)
G) None of the above

Question 8

A key advantage of adopting the euro is that it:

Accepted Answer

A)   helps in reduction of competition in Europe.
B)   has prevented the development of a highly liquid pan-European capital market.
C)   lowers foreign exchange and hedging costs in Europe.
D)   insulates Europe from international competition.
E)   increases the range of investment options open to institutions only.F) B) and E)
G) A) and E)

Question 9

A political union addresses the issue of how to make a coordinating bureaucracy accountable to the citizens of member nations of an economic union.

Accepted Answer

A) True 
 B)False

Question 10

_____ refers to agreements among countries in a geographic region to reduce and ultimately remove tariff and nontariff barriers to the free flow of goods,services,and factors of production between each other.

Accepted Answer

A)   Regional economic integration
B)   Cross-cultural integration
C)   Zoning agreement
D)   Administrative trade policies
E)   Balance-of-trade equilibriumF) A) and B)
G) B) and C)

Question 11

Which of the following is true of the European Free Trade Association (EFTA) ?

Accepted Answer

A)   The emphasis of EFTA has been on free trade in agricultural goods.
B)   Industrial goods were left out of the trade arrangement, each member being allowed to determine its own level of support.
C)   Members cannot determine the level of protection applied to goods coming from outside EFTA.
D)   It was founded by those western European countries that initially decided not to be part of the European Community.
E)   It imposes a common tariff, of 5 to 20 percent, on products imported from outside.F) B) and C)
G) D) and E)

Question 12

A(n) _____ is defined as a group of countries committed to removing all barriers to the free flow of goods and services between each other,but pursuing independent external trade policies.

Accepted Answer

A)   free trade area
B)   command economy
C)   efficient market
D)   foreign exchange market
E)   location economyF) A) and E)
G) C) and D)

Question 13

The European Council considered to be the ultimate controlling authority within the European Union (EU) because:

Accepted Answer

A)   it monitors member states to make sure they are complying with EU laws.
B)   it has a monopoly in proposing EU legislation.
C)   it has 754 members that are directly elected by the populations of the member-states.
D)   draft legislation from the European Commission can become EU law only if the council agrees.
E)   it is the supreme court for appeals for EU law.F) A) and B)
G) B) and C)

Question 14

Which of the following refers to an association of English-speaking Caribbean states that are attempting to establish a customs union?

Accepted Answer

A)   CARICOM
B)   Central American Free Trade Agreement
C)   Central American Common Market
D)   Free Trade Area of the Americas
E)   Caribbean Single Market and EconomyF) A) and C)
G) C) and D)

Question 15

Which of the following is true of the Andean Pact of 1969?

Accepted Answer

A)   Political and economic problems seem to have hindered cooperation among member-countries of the Andean Pact.
B)   By the mid-1980s, the Andean Pact achieved most of its stated objectives.
C)   The dominant political ideology in many of the Andean countries tended toward the democratic end of the political spectrum.
D)   The Galápagos Declaration effectively replaced the Andean Pact in 1997.
E)   The Andean Pact sought to remove a common external tariff.F) A) and D)
G) B) and E)

Question 16

Which of the following was a change proposed by the Single European Act?

Accepted Answer

A)   Establish frontier controls among European Community countries
B)   Increase the resources required for complying with trade bureaucracy
C)   Place barriers to competition in the retail banking and insurance businesses
D)   Apply the principle of "mutual recognition" to product standards
E)   Reduce costs directly by not allowing lower-cost suppliers into national economiesF) B) and E)
G) A) and E)

Question 17

In a customs union,a common currency is adopted.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is a solution to the issue of how to make a coordinating bureaucracy accountable to the citizens of member nations?

Accepted Answer

A)   Establishment of a political union
B)   Establishment of a customs union
C)   Establishment of exclusive economic zones
D)   Establishment of free trade agreements
E)   Establishment of a common marketF) C) and E)
G) B) and D)

Question 19

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

Accepted Answer

A)   Council of the European Union
B)   European Commission
C)   European Parliament
D)   Court of Justice
E)   European CommunityF) B) and E)
G) A) and C)

Question 20

Which of the following organizations,established in 1951,was the forerunner of the European Union?

Accepted Answer

A)   European Economic Community
B)   European Coal and Steel Community
C)   European Agricultural and Energy Union
D)   European Textiles and Agricultural Community
E)   European FoundationF) D) and E)
G) C) and D)

Exam 9: Regional Economic Integration

Which of the following are significant trade blocs in Europe?

Correct AnswerverifiedShow Answer

Which of the following is true regarding the establishment of the euro?

Correct AnswerverifiedShow Answer

Which of the following is true of the Andean Pact of 1969?

Correct AnswerverifiedShow Answer

Which of the following refers to an association of English-speaking Caribbean states that are attempting to establish a customs union?

Correct AnswerverifiedShow Answer

Which of the following organizations,established in 1951,was the forerunner of the European Union?

Correct AnswerverifiedShow Answer

Which of the following is a benefit of adopting the euro?

Correct AnswerverifiedShow Answer

In a customs union,a common currency is adopted.

Correct AnswerverifiedShow Answer

What are the objectives of the Single European Act?

Correct AnswerverifiedThe purpose of the Single European Act w...View AnswerShow Answer

A(n) _____ is defined as a group of countries committed to removing all barriers to the free flow of goods and services between each other,but pursuing independent external trade policies.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A political union addresses the issue of how to make a coordinating bureaucracy accountable to the citizens of member nations of an economic union.

Correct AnswerverifiedShow Answer

_____ refers to agreements among countries in a geographic region to reduce and ultimately remove tariff and nontariff barriers to the free flow of goods,services,and factors of production between each other.

Correct AnswerverifiedShow Answer

A key advantage of adopting the euro is that it:

Correct AnswerverifiedShow Answer

A regional free trade agreement will benefit the world only if:

Correct AnswerverifiedShow Answer

The _____,which meets in Strasbourg,France,is primarily a consultative rather than a legislative body.It debates legislation proposed by the commission and forwarded to it by the council.

Correct AnswerverifiedShow Answer

Which of the following is true of the European Free Trade Association (EFTA) ?

Correct AnswerverifiedShow Answer

Briefly describe the benefits of the euro.

Correct AnswerverifiedEuropeans decided to establish a single ...View AnswerShow Answer

Which of the following is a solution to the issue of how to make a coordinating bureaucracy accountable to the citizens of member nations?

Correct AnswerverifiedShow Answer

The European Council considered to be the ultimate controlling authority within the European Union (EU) because:

Correct AnswerverifiedShow Answer

Which of the following was a change proposed by the Single European Act?

Correct AnswerverifiedShow Answer

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The purpose of the Single European Act w...
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Europeans decided to establish a single ...
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