Question 1

Which of the following is a major consideration that underlay the establishment of the European Community?

Accepted Answer

A)  The pressing need to have a common currency that would make trade between European and non-European countries easier
B)  The need for a united Europe to deal with the United States and the politically alien Soviet Union
C)  The economic lessons from the Great Depression that hit the United States in the 1920s
D)  The success of the European Free Trade Association formed by Western European countries in 1960
E)  The rise of communism in Europe in the 1960sF) All of the above
G) A) and B)

Question 2

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 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 appeals court for EU law.F) None of the above
G) A) and E)

Question 3

Which of the following has 754 members as of 2014, and is directly elected by the populations of the member-states?

Accepted Answer

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

Question 4

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 5

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

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true of the Asia-Pacific Economic Cooperation (APEC) ?

Accepted Answer

A)  It does not include the United States, Japan, and China.
B)  The meeting of APEC members in Seattle in 1993 led to greater economic integration.
C)  It was founded in 1990 at the suggestion of Australia.
D)  APEC members signed a free trade agreement with China that removes tariffs on 90 percent of traded goods.
E)  APEC members have established a free trade zone.F) D) and E)
G) A) and B)

Question 7

Which of the following is true of the political case for regional economic integration?

Accepted Answer

A)  Linking neighboring economies increases the potential for violent conflict.
B)  Free trade stimulates economic growth, which creates dynamic gains from trade.
C)  Making neighboring economies increasingly dependent on each other fails to create incentives for political cooperation.
D)  Countries can enhance their political weight in the world by grouping their economies.
E)  Those who have sought a united Europe have always had a desire to make another war in Europe imminent.F) A) and E)
G) None of the above

Question 8

The European Union is by far more significant than the European Free Trade Association (EFTA), in terms of membership as well as economic and political influence in the world economy.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is true with regard to the Asia-Pacific Economic Cooperation (APEC) ?

Accepted Answer

A)  The stated aim of APEC is to increase multilateral cooperation in view of the economic rise of the Pacific nations.
B)  The goal of APEC is to reduce import tariffs among the six original members to zero.
C)  APEC is the world's largest free trade area.
D)  Collectively, the member-states account for about 85 percent of the world's GNP, 75 percent of world trade, and much of the growth in the world economy.
E)  APEC currently has 25 member-states, including such economic powerhouses as Germany, India, and Brazil.F) C) and D)
G) B) and D)

Question 10

Establishment of which of the following would hold a coordinating bureaucracy accountable to the citizens of member nations?

Accepted Answer

A)  A political union
B)  A customs union
C)  An exclusive economic zone
D)  A free trade agreement
E)  A common marketF) C) and E)
G) All of the above

Question 11

Which of the following refers to a permanent bailout fund, worth about €500 billion, set up by the euro zone nations to restore confidence in the euro?

Accepted Answer

A)  European Fiscal Union
B)  European Fiscal Compact
C)  Troubled Assets Relief Program
D)  European Stability Mechanism
E)  European Financial Stability FacilityF) D) and E)
G) B) and D)

Question 12

Briefly describe the Association of Southeast Asian Nations.

Accepted Answer

Formed in 1967, the Association of South...

Question 13

Which of the following is the goal of the Caribbean Single Market and Economy?

Accepted Answer

A)  To remove all trade barriers between member nations in practice
B)  To establish a political union
C)  To adopt a common currency
D)  To harmonize macroeconomic and monetary policy between member-states
E)  To establish an economic unionF) B) and D)
G) C) and E)

Question 14

Which of the following is true of the criteria to qualify for membership to the European Union?

Accepted Answer

A)  The applicants were not required to privatize state assets.
B)  The applicants were not required to adopt EU laws.
C)  The applicants were required to tame inflation.
D)  The applicants were required to refrain from restructuring industries.
E)  The applicants were required to prevent deregulation of markets.F) B) and D)
G) All of the above

Question 15

Which of the following levels of economic integration involves the use of a common currency, harmonization of members' tax rates, and a common monetary and fiscal policy?

Accepted Answer

A)  Free trade area
B)  Customs union
C)  Common market
D)  Economic union
E)  Command economyF) A) and B)
G) B) and C)

Question 16

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) C) and D)
G) B) and D)

Question 17

Which of the following is true about the European Parliament?

Accepted Answer

A)  It cannot propose amendments to legislations.
B)  It is directly elected by the populations of the member-states.
C)  It is primarily a legislative body rather than a consultative body.
D)  It does not have the right to veto laws such as single-market legislation.
E)  The European Parliament does not have the right to vote on the appointment of commissioners.F) B) and D)
G) B) and C)

Question 18

Describe the drawbacks of the euro.

Accepted Answer

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

Question 19

The European Council is composed of one representative from the government of each member-state but the membership varies depending on the topic being discussed.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following occurs when lower-cost external suppliers are replaced by higher-cost suppliers within a free trade area?

Accepted Answer

A)  Trade creation
B)  Strategic pricing
C)  Synergy
D)  Trade diversion
E)  ProtectionismF) A) and E)
G) D) and E)

Exam 9: Regional Economic Integration

Which of the following is true of the criteria to qualify for membership to the European Union?

Correct AnswerverifiedShow Answer

Which of the following is true of the political case for regional economic integration?

Correct AnswerverifiedShow Answer

Which of the following has 754 members as of 2014, and is directly elected by the populations of the member-states?

Correct AnswerverifiedShow Answer

Which of the following occurs when lower-cost external suppliers are replaced by higher-cost suppliers within a free trade area?

Correct AnswerverifiedShow Answer

Which of the following levels of economic integration involves the use of a common currency, harmonization of members' tax rates, and a common monetary and fiscal policy?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is true of the Asia-Pacific Economic Cooperation (APEC) ?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Establishment of which of the following would hold a coordinating bureaucracy accountable to the citizens of member nations?

Correct AnswerverifiedShow Answer

Which of the following refers to a permanent bailout fund, worth about €500 billion, set up by the euro zone nations to restore confidence in the euro?

Correct AnswerverifiedShow Answer

Which of the following is the goal of the Caribbean Single Market and Economy?

Correct AnswerverifiedShow Answer

The European Union is by far more significant than the European Free Trade Association (EFTA), in terms of membership as well as economic and political influence in the world economy.

Correct AnswerverifiedShow Answer

Which of the following is a major consideration that underlay the establishment of the European Community?

Correct AnswerverifiedShow Answer

Briefly describe the Association of Southeast Asian Nations.

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

Which of the following is true about the European Parliament?

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

Describe the drawbacks of the euro.

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

The European Council is composed of one representative from the government of each member-state but the membership varies depending on the topic being discussed.

Correct AnswerverifiedShow Answer

Which of the following is true with regard to the Asia-Pacific Economic Cooperation (APEC) ?

Correct AnswerverifiedShow Answer

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Formed in 1967, the Association of South...
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The drawback of the euro is that some na...
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