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| 1.
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The desire by European to hold their own on the world's economic and political stage prompted the formation of the EU. |
| | A) | True |
| | B) | False |
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| 2.
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The Single European Act committed EU countries to adopt a single currency, the euro. |
| | A) | True |
| | B) | False |
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| 3.
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The EU currently has a population of about 450 million people. |
| | A) | True |
| | B) | False |
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| 4.
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NAFTA's initial impact on jobs was very small. |
| | A) | True |
| | B) | False |
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| 5.
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The AFTA Agreement represents Africa's first attempt at regional economic integration. |
| | A) | True |
| | B) | False |
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| 6.
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When countries agree to reduce and remove tariff and non-tariff barriers to the free flow of goods, services, and factors of production between each other, the countries have agreed to |
| | A) | a free trade area |
| | B) | a customs union |
| | C) | regional economic integration |
| | D) | a single economic entity |
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| 7.
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Norway, Iceland, Liechtenstein, and Switzerland all belong to |
| | A) | the EU |
| | B) | MERCOSUR |
| | C) | NAFTA |
| | D) | EFTA |
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| 8.
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The EU is on the way to achieving _____ status. |
| | A) | economic union |
| | B) | common market |
| | C) | political union |
| | D) | customs union |
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| 9.
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Regional economic integration can be seen as |
| | A) | increasing the political sovereignty of member countries |
| | B) | an attempt to achieve additional gains from the free flow of trade and investment between countries |
| | C) | an affront to organizations such as the WTO |
| | D) | a means of circumventing trade regulations as laid out by the WTO |
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| 10.
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Great Britain's reluctance to adopt the euro is an example of _________ that occurs as a result of economic integration. |
| | A) | increased control over monetary policy |
| | B) | loss of national sovereignty |
| | C) | the loosening of control over fiscal issues |
| | D) | the trade creation |
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| 11.
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If, prior to NAFTA, the U.S. produced its own textiles at a higher cost than Mexico, but after NAFTA imports them from Mexico |
| | A) | trade has been diverted |
| | B) | trade has been created |
| | C) | Mexico is worse off |
| | D) | the U.S. is worse off |
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| 12.
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The Treaty of Rome is important because |
| | A) | it helped end World War II |
| | B) | it provides outsiders with EU status when entering the EU market through Italy |
| | C) | it established the EU |
| | D) | it ended EFTA |
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| 13.
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The European Commission |
| | A) | is responsible for proposing EU legislation, implementing it, and monitoring compliance with EU laws by member states |
| | B) | is the ultimate controlling authority within the EU |
| | C) | is primarily a consultative rather than a legislative body |
| | D) | is the supreme appeals court for EU laws |
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| 14.
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Which of the following is true of the Council of the European Union? |
| | A) | it is primarily a consultative rather than a legislative body |
| | B) | it is the ultimate controlling authority within the EU |
| | C) | it is responsible for proposing EU legislation, implementing it, and monitoring compliance with EU laws by member states |
| | D) | it is the supreme appeals court for EU laws |
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| 15.
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The European Parliament is |
| | A) | the supreme appeals court for EU laws |
| | B) | responsible for proposing EU legislation, implementing it, and monitoring compliance with EU laws by member states |
| | C) | primarily a consultative rather than a legislative body |
| | D) | is the ultimate controlling authority within the EU |
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| 16.
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Which of the following was not an objective of the Single European Act? |
| | A) | to remove all frontier controls between EC countries |
| | B) | to apply the principle of mutual recognition to product standards |
| | C) | to close procurement to non-national suppliers |
| | D) | to lift barriers to competition in the retail banking and insurance businesses |
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| 17.
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The adoption of the euro |
| | A) | enabled participating countries to gain better control over their monetary polices |
| | B) | created the second largest currency zone in the world |
| | C) | resulted in increased national sovereignty |
| | D) | mage it the most important currency in the world |
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| 18.
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The introduction of the euro should result in all of the following except |
| | A) | European investors should be able to better diversify their risk |
| | B) | consumers should gain through lower prices |
| | C) | European companies should become more efficient |
| | D) | individual countries will be able to set their own interest rates |
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| 19.
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Critics have suggested that the decision by the EU to adopt the euro was wrong because |
| | A) | the EU is not an optimal currency area |
| | B) | of the similarities in the underlying structure of economic activity that make it unnecessary |
| | C) | it should have occurred at the common market stage |
| | D) | its shifts responsibility for national monetary policies to the individual countries |
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| 20.
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Which of the following countries has applied for membership to the EU? |
| | A) | Switzerland |
| | B) | Romania |
| | C) | Iceland |
| | D) | Liechtenstein |
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| 21.
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Research on the first three and half years of NAFTA shows |
| | A) | that NAFTA has failed to accomplish its goals |
| | B) | that the negative effects of the agreement that were predicted to occur never materialized |
| | C) | that the agreement brought about little change on the trends already in place |
| | D) | that trade between Mexico and the U.S. increased significantly |
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| 22.
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All of the following are true of the Andean Pact except |
| | A) | it is now known as the Andean Community |
| | B) | it includes Columbia, Venezuela, Peru, and Ecuador |
| | C) | it operates as a common market |
| | D) | it is in negotiation with MERCOSUR to create a free trade area between the two blocs |
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| 23.
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MERCOSUR |
| | A) | has a common currency |
| | B) | was originally established to create a free trade area by the end of 1994 |
| | C) | has a combined population of 450 million people |
| | D) | is proven to be a successful and unifying presence in Latin America |
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| 24.
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Progress toward a Free Trade of the Americas has been slow because |
| | A) | of debates over intellectual property rights and agricultural subsidies |
| | B) | Brazil is firmly against the idea, yet is the largest economy in South America |
| | C) | the U.S. wants Brazil and Argentina to remove their subsidies on agricultural products |
| | D) | Latin American debt must be paid off in order for this type of agreement to be successful |
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| 25.
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Which of the following countries is not a member of APEC? |
| | A) | China |
| | B) | the U.S. |
| | C) | Chile |
| | D) | Japan |
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