Question 1

Which of the following is true of the Treaty of Lisbon that was signed in 2007?

Accepted Answer

A)  It defined the European Commission's role in competition policy.
B)  It brought the commission to the court for failure to act according to a European Union treaty.
C)  It created the position of the president of the European Council.
D)  It lifted barriers to competition in the retail banking and insurance businesses.
E)  It created the Court of Justice,the supreme appeals court for European Union law.F) A) and C)
G) D) and E)

Question 2

The emphasis of the European Free Trade Association has been on free trade in consumer goods.

Accepted Answer

A) True 
 B)False

Question 3

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)  Protectionism.F) None of the above
G) A) and B)

Question 4

In terms of regional economic integration,linking neighboring economies and making them increasingly dependent on each other creates incentives for political cooperation between the neighboring states.

Accepted Answer

A) True 
 B)False

Question 5

The Andean Community now operates as a(n)

Accepted Answer

A)  common market.
B)  economic union.
C)  customs union.
D)  command economy.
E)  political union.F) C) and E)
G) B) and C) C

Question 6

Which of the following countries has adopted the euro as its currency?

Accepted Answer

A)  Great Britain
B)  France
C)  Denmark
D)  Sweden
E)  SwitzerlandF) B) and C)
G) A) and D)

Question 7

Describe the drawbacks of the euro.

Accepted Answer

The drawback of the euro is that some na...

Question 8

Which of the following is true of the provisions of the North American Free Trade Agreement?

Accepted Answer

A)  It does not allow financial institutions unrestricted access to the Mexican market.
B)  It abolishes special treatment (protection) given to Mexican energy and railway industries.
C)  It allows lowering of national environmental standards to lure investment.
D)  It seeks the removal of most barriers on the cross-border flow of services.
E)  It does not deal with the protection of intellectual property rights.F) B) and E)
G) A) and E) D

Question 9

Briefly describe the Association of Southeast Asian Nations.

Accepted Answer

Formed in 1967,the Association of Southe...

Question 10

Since its establishment in January 1,1999,the euro has steadily appreciated against the U.S.dollar,reaffirming the ability of the European Central Bank to manage monetary policy within the euro zone.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is true with regard to regional economic integration?

Accepted Answer

A)  Agreements designed to promote freer trade within regions have failed to produce gains from trade for all member countries.
B)  World Trade Organization members are not required to notify the organization of any regional trade agreements in which they participate.
C)  Regional economic integration is good for consumers because it lowers prices.
D)  Regional economic integration benefits producers because they do not have to adapt to a more competitive environment.
E)  The movement toward regional economic integration has been most successful in Asia.F) C) and D)
G) A) and C)

Question 12

To spur trade,Cormoran,Brithea,and Asmakush decided on economic integration where there were no barriers to trade between the three countries,they agreed on a common external trade policy,and allowed factors of production to move freely between the three countries.In short,the three countries formed a

Accepted Answer

A)  command economy.
B)  customs union.
C)  common market.
D)  efficient market.
E)  free trade area.F) B) and C)
G) B) and E)

Question 13

What are the two impediments to regional economic integration?

Accepted Answer

Despite the strong economic and politica...

Question 14

Suppose the country of Ceria and Lithinia imposed tariffs on imports from all countries,and then they set up a free trade area,scrapping all trade barriers between themselves but maintaining tariffs on imports from the rest of the world.Now,Ceria begins to import sugar from Lithinia.However,Ceria had previously been importing sugar from another country,Cadnia,which produced sugar more cheaply than Ceria or Lithinia.This is an example of

Accepted Answer

A)  trade creation.
B)  strategic pricing.
C)  synergy.
D)  trade diversion.
E)  protectionism.F) B) and C)
G) None of the above

Question 15

The price of a bouquet of roses in France is 4 euros.Tom Smith,a frequent international traveler found that a similar bouquet of roses cost only 3 euros in Germany.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 B)
G) A) and C)

Question 16

Which of the following is true about the European Commission?

Accepted Answer

A)  The European Union's competition commissioner has been gaining influence as the chief regulator of competition policy in the member nations of the European Union.
B)  The European Commission has to be approved by the Council of the European Union before it can begin work.
C)  The European Commission does not have a policing role with respect to European Union laws.
D)  The legislation proposed by the European Commission goes directly to the European Parliament.
E)  The European Commission is the ultimate controlling authority within the European Union.F) B) and E)
G) A) and C)

Question 17

The Maastricht Treaty called for

Accepted Answer

A)  establishment of the independent European Central Bank (EC
B)  .
B)  the abolition of restrictions on cabotage.
C)  establishment of the European Parliament.
D)  the formation of a single market for the European Union.
E)  placing restrictions on foreign exchange transactions between member countries.F) C) and D)
G) B) and D)

Question 18

A disadvantage of the euro is that the development of a pan-European,euro-denominated capital market will decrease the range of investment options open to both individuals and institutions.

Accepted Answer

A) True 
 B)False

Question 19

The Andean Community now operates as a customs union.

Accepted Answer

A) True 
 B)False

Question 20

If seven countries formed a common market,which of the following would be a feature of their trade agreement?

Accepted Answer

A)  absence of a common external trade policy with regard to nonmembers
B)  free movement of factors of production between member nations
C)  establishment of barriers to the free flow of goods between member nations
D)  lack of administrative machinery to oversee trade relations with nonmembers
E)  mandatory use of a common currency among member nationsF) C) and E)
G) A) and E) B

Exam 9: Regional Economic Integration

Which of the following is true of the Treaty of Lisbon that was signed in 2007?

Correct Answer
verified

The emphasis of the European Free Trade Association has been on free trade in consumer goods.

Correct Answer
verified

Correct Answer
verified

In terms of regional economic integration,linking neighboring economies and making them increasingly dependent on each other creates incentives for political cooperation between the neighboring states.

Correct Answer
verified

The Andean Community now operates as a(n)

Correct Answer
verified
C

Which of the following countries has adopted the euro as its currency?

Correct Answer
verified

Describe the drawbacks of the euro.

Correct Answer
verified
The drawback of the euro is that some na...
View Answer

Which of the following is true of the provisions of the North American Free Trade Agreement?

Correct Answer
verified
D

Briefly describe the Association of Southeast Asian Nations.

Correct Answer
verified
Formed in 1967,the Association of Southe...
View Answer

Since its establishment in January 1,1999,the euro has steadily appreciated against the U.S.dollar,reaffirming the ability of the European Central Bank to manage monetary policy within the euro zone.

Correct Answer
verified

Which of the following is true with regard to regional economic integration?

Correct Answer
verified

Correct Answer
verified

What are the two impediments to regional economic integration?

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

Correct Answer
verified

The price of a bouquet of roses in France is 4 euros.Tom Smith,a frequent international traveler found that a similar bouquet of roses cost only 3 euros in Germany.A benefit of adopting the euro as a common currency is that it

Correct Answer
verified

Which of the following is true about the European Commission?

Correct Answer
verified

The Maastricht Treaty called for

Correct Answer
verified

A disadvantage of the euro is that the development of a pan-European,euro-denominated capital market will decrease the range of investment options open to both individuals and institutions.

Correct Answer
verified

The Andean Community now operates as a customs union.

Correct Answer
verified

If seven countries formed a common market,which of the following would be a feature of their trade agreement?

Correct Answer
verified
B

Exam 9: Regional Economic Integration

Which of the following is true of the Treaty of Lisbon that was signed in 2007?

Correct AnswerverifiedShow Answer

The emphasis of the European Free Trade Association has been on free trade in consumer goods.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In terms of regional economic integration,linking neighboring economies and making them increasingly dependent on each other creates incentives for political cooperation between the neighboring states.

Correct AnswerverifiedShow Answer

The Andean Community now operates as a(n)

Correct AnswerverifiedC

Which of the following countries has adopted the euro as its currency?

Correct AnswerverifiedShow Answer

Describe the drawbacks of the euro.

Correct AnswerverifiedThe drawback of the euro is that some na...View AnswerShow Answer

Which of the following is true of the provisions of the North American Free Trade Agreement?

Correct AnswerverifiedD

Briefly describe the Association of Southeast Asian Nations.

Correct AnswerverifiedFormed in 1967,the Association of Southe...View AnswerShow Answer

Since its establishment in January 1,1999,the euro has steadily appreciated against the U.S.dollar,reaffirming the ability of the European Central Bank to manage monetary policy within the euro zone.

Correct AnswerverifiedShow Answer

Which of the following is true with regard to regional economic integration?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What are the two impediments to regional economic integration?

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

Correct AnswerverifiedShow Answer

The price of a bouquet of roses in France is 4 euros.Tom Smith,a frequent international traveler found that a similar bouquet of roses cost only 3 euros in Germany.A benefit of adopting the euro as a common currency is that it

Correct AnswerverifiedShow Answer

Which of the following is true about the European Commission?

Correct AnswerverifiedShow Answer

The Maastricht Treaty called for

Correct AnswerverifiedShow Answer

A disadvantage of the euro is that the development of a pan-European,euro-denominated capital market will decrease the range of investment options open to both individuals and institutions.

Correct AnswerverifiedShow Answer

The Andean Community now operates as a customs union.

Correct AnswerverifiedShow Answer

If seven countries formed a common market,which of the following would be a feature of their trade agreement?

Correct AnswerverifiedB

Correct Answer
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Correct Answer
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Correct Answer
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C

Correct Answer
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Correct Answer
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The drawback of the euro is that some na...
View Answer

Correct Answer
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D

Correct Answer
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Formed in 1967,the Association of Southe...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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B