Question 1

The Andean Pact was largely based on the European Union model and was highly successful at achieving its stated goals.

Accepted Answer

A) True 
 B)False

Question 2

The countries of Mesomia,Candera,Blauthop,and Rochus are committed to removing all barriers to the free flow of goods and services between each other but want to pursue independent external trade policies.The countries have in mind a(n)

Accepted Answer

A)  free trade area.
B)  customs union.
C)  common market.
D)  economic union.
E)  political union.F) B) and C)
G) A) and E)

Question 3

The European Commission is the ultimate controlling authority within the European Union because draft legislation from the commission can become EU law only if the council agrees.

Accepted Answer

A) True 
 B)False

Question 4

The goal of ESASME,an economic union,is to have a Council of Ministers that would coordinate the economic,social,and foreign policy of the member-states.ESASME wants to be a

Accepted Answer

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

Question 5

Which of the following is a significant impact of the North American Free Trade Agreement (NAFTA) ?

Accepted Answer

A)  It led to decreased economic stability in Canada.
B)  It led to a major trade deficit for Canada.
C)  It helped create the background for increased political stability in Mexico.
D)  It led to a trade surplus for all the three member nations.
E)  It led to a reduction in purchasing power of consumers in America.F) A) and D)
G) C) and E)

Question 6

Which of the following is true of the Court of Justice?

Accepted Answer

A)  The judges are required to act as representatives of national interests.
B)  It comprises several judges from a few selected countries.
C)  It is the supreme appeals court for European Union law.
D)  A member country cannot bring another member country to this court.
E)  Member countries cannot bring the commission or the council to this court.F) A) and B)
G) A) and C)

Question 7

The goal of the Caribbean Single Market and Economy is to

Accepted Answer

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

Question 8

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

Question 9

How is a common market different from an economic union?

Accepted Answer

A common market has no barriers to trade...

Question 10

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

Question 11

Briefly describe the concept of regional economic integration.

Accepted Answer

By regional economic integration we mean...

Question 12

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

Question 13

Minto and Maily,two neighboring countries,have the same wage rates,tax regimes,and business cycles.In addition,the two countries have reacted similarly to past economic shocks.Minto and Maily can adopt a common currency because they form a(n)

Accepted Answer

A)  managed currency zone.
B)  open exchange regime.
C)  optimal currency area.
D)  free trade area.
E)  advanced monetary zone.F) C) and E)
G) None of the above

Question 14

As a result of _____,the Central American Common Market collapsed in 1969.

Accepted Answer

A)  the devaluation of the Brazilian currency by 40 percent
B)  a coup in Nicaragua that led to the overthrow of the incumbent regime
C)  war between Honduras and El Salvador after a riot at a soccer match between teams from the two countries
D)  the withdrawal from the trade arrangement by Costa Rica
E)  the collapse of monetary policy between Costa Rica and El SalvadorF) A) and E)
G) A) and D)

Question 15

Which of the following is the reason that Great Britain,Denmark,and Sweden have stayed out of the euro zone?

Accepted Answer

A)  dollar peg advocated by some members of the European Union
B)  implied loss of national sovereignty to the European Central Bank
C)  volatility of the euro
D)  reluctance to compete directly against the U.S.dollar
E)  reluctance to be considered an optimal currency areaF) A) and B)
G) C) and D)

Question 16

Which of the following is the aim of the Central America Free Trade Agreement?

Accepted Answer

A)  Lowering of trade barriers between the United States and the Central American Common Market countries
B)  Elimination of trade barriers between the CARICOM and Central American Common Market countries
C)  Reduction of trade barriers between Caribbean Single Market and Economy nations and Central American Common Market countries
D)  Introduction of a common currency for Costa Rica,El Salvador,Guatemala,Honduras,and Nicaragua
E)  Reductions in tariffs and quotas between Costa Rica,Dominican Republic,and NicaraguaF) A) and B)
G) None of the above

Question 17

The European Community became the European Union in 1993 following the ratification of the

Accepted Answer

A)  Maastricht Treaty.
B)  Warsaw Pact.
C)  Treaty of Rome.
D)  Single European Act.
E)  Lisbon Treaty.F) A) and C)
G) B) and D)

Question 18

As with free trade in general,regional economic integration creates gain for consumers,but it can be challenging for some producers.

Accepted Answer

A) True 
 B)False

Question 19

Differentiate between a free trade area and a customs union.Provide an example of each form of economic integration.

Accepted Answer

In a free trade area,all barriers to the...

Question 20

The concept of the "euro-consumer" is a myth.

Accepted Answer

A) True 
 B)False

Exam 9: Regional Economic Integration

The goal of the Caribbean Single Market and Economy is to

Correct AnswerverifiedShow Answer

As with free trade in general,regional economic integration creates gain for consumers,but it can be challenging for some producers.

Correct AnswerverifiedShow Answer

Differentiate between a free trade area and a customs union.Provide an example of each form of economic integration.

Correct AnswerverifiedIn a free trade area,all barriers to the...View AnswerShow Answer

The European Community became the European Union in 1993 following the ratification of the

Correct AnswerverifiedShow Answer

The countries of Mesomia,Candera,Blauthop,and Rochus are committed to removing all barriers to the free flow of goods and services between each other but want to pursue independent external trade policies.The countries have in mind a(n)

Correct AnswerverifiedShow Answer

Briefly describe the concept of regional economic integration.

Correct AnswerverifiedBy regional economic integration we mean...View AnswerShow Answer

As a result of _____,the Central American Common Market collapsed in 1969.

Correct AnswerverifiedShow Answer

Which of the following is the reason that Great Britain,Denmark,and Sweden have stayed out of the euro zone?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The concept of the "euro-consumer" is a myth.

Correct AnswerverifiedShow Answer

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

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 AnswerverifiedShow Answer

The European Commission is the ultimate controlling authority within the European Union because draft legislation from the commission can become EU law only if the council agrees.

Correct AnswerverifiedShow Answer

How is a common market different from an economic union?

Correct AnswerverifiedA common market has no barriers to trade...View AnswerShow Answer

The Andean Pact was largely based on the European Union model and was highly successful at achieving its stated goals.

Correct AnswerverifiedShow Answer

Which of the following is true of the Court of Justice?

Correct AnswerverifiedShow Answer

Which of the following is a significant impact of the North American Free Trade Agreement (NAFTA) ?

Correct AnswerverifiedShow Answer

Minto and Maily,two neighboring countries,have the same wage rates,tax regimes,and business cycles.In addition,the two countries have reacted similarly to past economic shocks.Minto and Maily can adopt a common currency because they form a(n)

Correct AnswerverifiedShow Answer

The goal of ESASME,an economic union,is to have a Council of Ministers that would coordinate the economic,social,and foreign policy of the member-states.ESASME wants to be a

Correct AnswerverifiedShow Answer

Which of the following is the aim of the Central America Free Trade Agreement?

Correct AnswerverifiedShow Answer

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In a free trade area,all barriers to the...
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By regional economic integration we mean...
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A common market has no barriers to trade...
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