Site MapHelpFeedbackMultiple Choice Quiz
Multiple Choice Quiz
(See related pages)



1

If a country expects that the trade diversion effect will dominate the trade creation effect if they join a customs union with a neighbor, they should:
A)not join the customs union.
B)join the customs union, but not join any proposed monetary union between the countries.
C)join the customs union, but only if the other country is larger.
D)join the customs union, but only if the other country is smaller.
2

The European Union set and met a goal to be a __________ by 1992.
A)monetary union
B)common market
C)free-trade area
D)customs union
3

As a result of joining a trade bloc, Country A finds that it is purchasing relatively more expensive cars from Country B, a fellow bloc member, rather than purchasing the less expensive cars from Country C, a bloc outsider. This phenomenon is called:
A)trade creation.
B)trade diversion.
C)a trade embargo.
D)trade lifting.





To learn more about the book this website supports, please visit its Information Center.
(c)2004 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.


International EconomicsOnline Learning Center

Home > Chapter 11 > Multiple Choice Quiz