Question 1

Which of the following comprises the euro zone?

Accepted Answer

A)  The 27 member nations of the European Union
B)  The member nations of the European Union and the applicants to the union
C)  The 18 member nations who use the euro as their currency
D)  The member nations of the European Union and countries who have pegged their currencies to the euro
E)  The 21 member nations that have their members in the European ParliamentF) A) and D)
G) B) and D) C

Question 2

Briefly describe the benefits of the euro.

Accepted Answer

Europeans decided to establish a single ...

Question 3

Which of the following is an example of concerns over national sovereignty acting as an impediment to regional economic integration?

Accepted Answer

A)  The Organization of the Petroleum Exporting Countries regulating the supply of petroleum as a cartel
B)  The Asia-Pacific Economic Cooperation failing to establish itself as a regional arrangement
C)  Admission of Eastern European nations into the European Union
D)  Great Britain refusing to adopt the common currency of the European Union, the euro
E)  The rise of the World Trade OrganizationF) C) and E)
G) B) and E)

Question 4

An argument against the North American Free Trade Agreement centered on the fear that ratification would result in:

Accepted Answer

A)  low interest rates in the Unites States and Canada.
B)  mass exodus of jobs from the United States into Mexico.
C)  a move toward a common currency for NAFTA member nations.
D)  competition from the members of the European Union.
E)  high inflation in the United States and Canada.F) D) and E)
G) B) and D)

Question 5

Which of the following is a threat facing the emergence of single markets?

Accepted Answer

A)  Getting engulfed in a trade war
B)  Increased price competition throughout the European Union
C)  Increase in price differentials across nations
D)  Reduced environmental standards in order to lure investments
E)  Overabundance of greenfield investmentsF) A) and B)
G) A) and C) B

Question 6

The agreement of the member-states of the Central American Common Market joined by the Dominican Republic to trade freely with the United States is known as the:

Accepted Answer

A)  Central American Free Trade Agreement.
B)  Central American Common Market.
C)  Free Trade Area of the Americas.
D)  CARICOM.
E)  Caribbean Single Market and Economy.F) None of the above
G) A) and E)

Question 7

Briefly describe how the creation of a single market through regional economic integration offers significant opportunities. Provide an example.

Accepted Answer

The creation of a single market through ...

Question 8

Which of the following is a reason for Great Britain, Denmark, and Sweden to stay out of the euro zone?

Accepted Answer

A)  The dollar peg advocated by some members of the European Union
B)  The implied loss of national sovereignty to the European Central Bank
C)  The volatility of the euro
D)  The reluctance to compete directly against the U.S. dollar
E)  The reluctance to be considered an optimal currency areaF) C) and D)
G) None of the above

Question 9

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) All of the above
G) A) and E)

Question 10

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) B) and D)
G) A) and E)

Question 11

The country of Argonia and the country of Berylia imposed tariffs on imports from all countries. They set up a free trade area, removing all trade barriers between themselves but maintaining tariffs on imports from the rest of the world. Argonia now begins to import sugar from Berylia. Previously, Argonia was indigenously producing sugar at a higher cost. Thus, Argonia benefits from this transaction. This is known as:

Accepted Answer

A)  trade creation
B)  strategic pricing
C)  synergy
D)  trade diversion
E)  protectionismF) B) and C)
G) C) and D)

Question 12

A benefit of adopting the euro as a common currency is that it:

Accepted Answer

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

Question 13

Briefly describe the European Council.

Accepted Answer

The European Council represents the inte...

Question 14

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) A) and D)
G) A) and C)

Question 15

Which of the following meets in Strasbourg, France, is primarily a consultative rather than a legislative body, and 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 B)

Question 16

What are the two impediments to regional economic integration?

Accepted Answer

Despite the strong economic and politica...

Question 17

The basic objective of the Association of Southeast Asian Nations is to foster freer trade among member countries and to achieve cooperation in their industrial policies.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is true of the Andean Pact during the mid-1980s?

Accepted Answer

A)  Tariff-free trade existed between member countries.
B)  Harmonization of economic policies between member countries had been achieved.
C)  Successful integration of member economies had been achieved.
D)  The Pact had failed to achieve the objective of a common external tariff.
E)  The dominant political ideology in many of the Andean countries tended toward democracy.F) A) and B)
G) B) and E)

Question 19

An advantage of the emergence of single markets is that the lowering of barriers to trade and investment among countries has led to decreased price competition throughout the European Union.

Accepted Answer

A) True 
 B)False  False

Question 20

Which of the following 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)  Command economy
B)  Customs union
C)  Common market
D)  Efficient market
E)  Free trade areaF) All of the above
G) A) and D)

Exam 9: Regional Economic Integration

Which of the following comprises the euro zone?

Correct Answer
verified
C

Briefly describe the benefits of the euro.

Correct Answer
verified
Europeans decided to establish a single ...
View Answer

Which of the following is an example of concerns over national sovereignty acting as an impediment to regional economic integration?

Correct Answer
verified

An argument against the North American Free Trade Agreement centered on the fear that ratification would result in:

Correct Answer
verified

Which of the following is a threat facing the emergence of single markets?

Correct Answer
verified
B

The agreement of the member-states of the Central American Common Market joined by the Dominican Republic to trade freely with the United States is known as the:

Correct Answer
verified

Briefly describe how the creation of a single market through regional economic integration offers significant opportunities. Provide an example.

Correct Answer
verified
The creation of a single market through ...
View Answer

Which of the following is a reason for Great Britain, Denmark, and Sweden to stay out of the euro zone?

Correct Answer
verified

Which of the following are significant trade blocs in Europe?

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

A benefit of adopting the euro as a common currency is that it:

Correct Answer
verified

Briefly describe the European Council.

Correct Answer
verified
The European Council represents the inte...
View Answer

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

Correct Answer
verified

Which of the following meets in Strasbourg, France, is primarily a consultative rather than a legislative body, and debates legislation proposed by the commission and forwarded to it by the council?

Correct Answer
verified

What are the two impediments to regional economic integration?

Correct Answer
verified
Despite the strong economic and politica...
View Answer

The basic objective of the Association of Southeast Asian Nations is to foster freer trade among member countries and to achieve cooperation in their industrial policies.

Correct Answer
verified

Which of the following is true of the Andean Pact during the mid-1980s?

Correct Answer
verified

An advantage of the emergence of single markets is that the lowering of barriers to trade and investment among countries has led to decreased price competition throughout the European Union.

Correct Answer
verified
False

Which of the following 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 Answer
verified

Exam 9: Regional Economic Integration

Which of the following comprises the euro zone?

Correct AnswerverifiedC

Briefly describe the benefits of the euro.

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

Which of the following is an example of concerns over national sovereignty acting as an impediment to regional economic integration?

Correct AnswerverifiedShow Answer

An argument against the North American Free Trade Agreement centered on the fear that ratification would result in:

Correct AnswerverifiedShow Answer

Which of the following is a threat facing the emergence of single markets?

Correct AnswerverifiedB

The agreement of the member-states of the Central American Common Market joined by the Dominican Republic to trade freely with the United States is known as the:

Correct AnswerverifiedShow Answer

Briefly describe how the creation of a single market through regional economic integration offers significant opportunities. Provide an example.

Correct AnswerverifiedThe creation of a single market through ...View AnswerShow Answer

Which of the following is a reason for Great Britain, Denmark, and Sweden to stay out of the euro zone?

Correct AnswerverifiedShow Answer

Which of the following are significant trade blocs in Europe?

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

Correct AnswerverifiedShow Answer

A benefit of adopting the euro as a common currency is that it:

Correct AnswerverifiedShow Answer

Briefly describe the European Council.

Correct AnswerverifiedThe European Council represents the inte...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following meets in Strasbourg, France, is primarily a consultative rather than a legislative body, and debates legislation proposed by the commission and forwarded to it by the council?

Correct AnswerverifiedShow Answer

What are the two impediments to regional economic integration?

Correct AnswerverifiedDespite the strong economic and politica...View AnswerShow Answer

The basic objective of the Association of Southeast Asian Nations is to foster freer trade among member countries and to achieve cooperation in their industrial policies.

Correct AnswerverifiedShow Answer

Which of the following is true of the Andean Pact during the mid-1980s?

Correct AnswerverifiedShow Answer

An advantage of the emergence of single markets is that the lowering of barriers to trade and investment among countries has led to decreased price competition throughout the European Union.

Correct AnswerverifiedFalse

Which of the following 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

Correct Answer
verified
C

Correct Answer
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Europeans decided to establish a single ...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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B

Correct Answer
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Correct Answer
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The creation of a single market through ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The European Council represents the inte...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Despite the strong economic and politica...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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False

Correct Answer
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