Question 1

The European Community was established with the signing in 1957 of the Treaty of

Accepted Answer

A)  Paris.
B)  Brussels.
C)  Switzerland.
D)  Rome.
E)  Lisbon.F) A) and E)
G) B) and C)

Question 2

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 3

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 4

Briefly describe the European Council.

Accepted Answer

The European Council represents the inte...

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Eripria,Gautom,and Kasmonis,three countries in a specific geographic area decide to form a free trade area.Which of the following is true with regard to their free trade area?

Accepted Answer

A)  Factors of production are allowed to move freely between member nations.
B)  Each member country is allowed to determine its own trade policies with regard to nonmembers.
C)  Member nations are required to have a common currency.
D)  Member nations are required to have a common monetary and fiscal policy.
E)  Member nations are required to have a central political apparatus that coordinates economic,social,and foreign policy.F) A) and D)
G) A) and C)

Question 7

In a free trade area,all barriers to the trade of goods and services among member countries are removed and a common external trade policy is adopted.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is a reason why Mercosur was temporarily suspended in 2001?

Accepted Answer

A)  dotcom bust in Paraguay
B)  economic crisis in Argentina
C)  exit of Uruguay from the group
D)  devaluation of the Mexican peso
E)  Venezuelan financial crisisF) A) and B)
G) B) and C)

Question 9

Which of the following is true of the Single European Act?

Accepted Answer

A)  It proposed to place frontier controls among European Community countries.
B)  It sought to abolish the application of the principle of "mutual recognition" to product standards.
C)  It proposed to reduce costs indirectly by preventing national suppliers to compete.
D)  It provided the impetus for the restructuring of substantial sections of European industry.
E)  It proposed to reduce costs directly by preventing lower-cost suppliers into national economies.F) B) and C)
G) A) and E)

Question 10

Three countries,close to each other in the Pacific Rim,enter into an agreement to remove all tariffs and trade barriers between them.They decide on a common trade policy with regard to nonmembers.Faced with political backlash,the countries stop short of allowing mobility of factors of production such as labor and capital.Which of the following levels of economic integration best describes this arrangement?

Accepted Answer

A)  political union
B)  customs union
C)  common market
D)  economic union
E)  monetary unionF) C) and D)
G) A) and B)

Question 11

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) None of the above
G) C) and E)

Question 12

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.

Accepted Answer

A) True 
 B)False

Question 13

The _____ proposed that all impediments to the formation of a single market be eliminated by December 31,1992,resulting in the Single European Act.

Accepted Answer

A)  Delors Commission
B)  Andean Pact
C)  Treaty of Rome
D)  North American Free Trade Agreement
E)  Maastricht TreatyF) None of the above
G) A) and B)

Question 14

The fourteen member countries of BERPHO have a level of economic integration that involves the use of a common currency,harmonization of members' tax rates,and a common monetary and fiscal policy.BERPHO is an example of a(n)

Accepted Answer

A)  free trade area.
B)  customs union.
C)  common market.
D)  economic union.
E)  command economy.F) All of the above
G) A) and B)

Question 15

Which of the following is an expected consequence of the implementation of the North American Free Trade Agreement?

Accepted Answer

A)  Low-skilled jobs will be moved out to Mexico resulting in lowering of average wage rates in the United States and Canada.
B)  Increased imports from Mexico will help reduce the huge trade deficit for United States and Canada.
C)  Lower incomes of the Mexicans would allow them to import fewer U.S.and Canadian goods,thereby decreasing demand.
D)  A large number of Mexican firms will hire low-skilled workers from the United States.
E)  Some U.S.and Canadian firms would move production to Mexico to take advantage of lower labor costs.F) B) and E)
G) A) and D)

Question 16

Which of the following 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) B) and D)

Question 17

Which of the following 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) A) and C)
G) None of the above

Question 18

What are the two political factors that led to the creation of the European Union?

Accepted Answer

The European Union (EU)is the product of...

Question 19

The European Council is 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 751 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 appeals court for EU law.F) All of the above
G) B) and C)

Question 20

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 B)
G) C) and D)

Exam 9: Regional Economic Integration

Which of the following is true of the Single European Act?

Correct Answer
verified

Which of the following is responsible for proposing European Union legislation,implementing it,and monitoring compliance with European Union laws by member-states?

Correct Answer
verified

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

Correct Answer
verified

Which of the following is an expected consequence of the implementation of the North American Free Trade Agreement?

Correct Answer
verified

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

Correct Answer
verified

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.

Correct Answer
verified

What are the two political factors that led to the creation of the European Union?

Correct Answer
verified
The European Union (EU)is the product of...
View Answer

The European Community was established with the signing in 1957 of the Treaty of

Correct Answer
verified

The _____ proposed that all impediments to the formation of a single market be eliminated by December 31,1992,resulting in the Single European Act.

Correct Answer
verified

Which of the following 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 Answer
verified

Correct Answer
verified

In a free trade area,all barriers to the trade of goods and services among member countries are removed and a common external trade policy is adopted.

Correct Answer
verified

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 Answer
verified

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

Correct Answer
verified

Eripria,Gautom,and Kasmonis,three countries in a specific geographic area decide to form a free trade area.Which of the following is true with regard to their free trade area?

Correct Answer
verified

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

Correct Answer
verified

The fourteen member countries of BERPHO have a level of economic integration that involves the use of a common currency,harmonization of members' tax rates,and a common monetary and fiscal policy.BERPHO is an example of a(n)

Correct Answer
verified

Briefly describe the European Council.

Correct Answer
verified
The European Council represents the inte...
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 a reason why Mercosur was temporarily suspended in 2001?

Correct Answer
verified

Exam 9: Regional Economic Integration

Which of the following is true of the Single European Act?

Correct AnswerverifiedShow Answer

Which of the following is responsible for proposing European Union legislation,implementing it,and monitoring compliance with European Union laws by member-states?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is an expected consequence of the implementation of the North American Free Trade Agreement?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

What are the two political factors that led to the creation of the European Union?

Correct AnswerverifiedThe European Union (EU)is the product of...View AnswerShow Answer

The European Community was established with the signing in 1957 of the Treaty of

Correct AnswerverifiedShow Answer

The _____ proposed that all impediments to the formation of a single market be eliminated by December 31,1992,resulting in the Single European Act.

Correct AnswerverifiedShow Answer

Which of the following 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

Correct AnswerverifiedShow Answer

In a free trade area,all barriers to the trade of goods and services among member countries are removed and a common external trade policy is adopted.

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

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

Correct AnswerverifiedShow Answer

Eripria,Gautom,and Kasmonis,three countries in a specific geographic area decide to form a free trade area.Which of the following is true with regard to their free trade area?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The fourteen member countries of BERPHO have a level of economic integration that involves the use of a common currency,harmonization of members' tax rates,and a common monetary and fiscal policy.BERPHO is an example of a(n)

Correct AnswerverifiedShow Answer

Briefly describe the European Council.

Correct AnswerverifiedThe European Council represents the inte...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 a reason why Mercosur was temporarily suspended in 2001?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
The European Union (EU)is the product of...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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