QUESTION Which of the following is true of the European Free Trade Association (EFTA)? 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 […]
QUESTION Which of the following are the most popular form of regional economic integration, accounting for almost 90 percent of regional agreements? A. Licensing agreements B. Economic unions C. Common markets D. Free trade agreements E. Political unions ANSWER D
QUESTION Which of the following is a feature of a common market? 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 […]
QUESTION Which of the following entails a closer economic integration and cooperation than a common market? A. Command economy B. Customs union C. Efficient market D. Free trade area E. Economic union ANSWER E
QUESTION 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? A. Command economy B. Customs union C. Common market D. Efficient market E. Free trade area ANSWER C
QUESTION 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? A. Free trade area B. Customs union C. Common market D. Economic union E. Command economy ANSWER D
QUESTION Establishment of which of the following would hold a coordinating bureaucracy accountable to the citizens of member nations? A. A political union B. A customs union C. An exclusive economic zone D. A free trade agreement E. A common market ANSWER A
QUESTION Which of the following is defined as a central political apparatus that coordinates the economic, social, and foreign policy of the member-states? A. Free trade area B. Political union C. Economic union D. Common market E. Command economy ANSWER B
QUESTION Which of the following is true with regard to an economic union? A. There are restrictions on immigration, emigration, or cross-border flow of capital among member countries. B. It entails less economic integration and cooperation than a common market. C. It involves the free flow of products and factors of production among member countries. […]
QUESTION Which of the following supports the economic case for regional economic integration? A. International institutions such as the World Trade Organization have been moving the world away from a free trade regime. B. The greater the number of countries involved in a free trade agreement, the fewer the perspectives that must be reconciled. C. […]
