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1 | |
The regional policies of the EU accounts for about a third of the EU’s budget |
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| | A) | TRUE |
| | B) | FALSE |
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2 | |
Spending on regional policies increased significantly when Spain and Portugal joined the EU. |
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| | A) | TRUE |
| | B) | FALSE |
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3 | |
Although there are several structural funds, they are all governed by common objectives. |
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| | A) | TRUE |
| | B) | FALSE |
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4 | |
In 2003, the Cohesion Fund could be spent only in Ireland, Greece, Portugal and Spain. |
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| | A) | TRUE |
| | B) | FALSE |
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5 | |
Most of the structural funds are spent on so called Objective 1 regions since these are the regions dominated by declining industries. |
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| | A) | TRUE |
| | B) | FALSE |
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6 | |
The main criterion for a region to qualify for Objective Spending is: |
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| | A) | a high fraction of agricultural activity. |
| | B) | a per capita income that is less than 75% of the EU average. |
| | C) | a high level of long term unemployment. |
| | D) | an important environmental problem. |
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7 | |
Economic activity in the EU is very concentrated geographically, for example: |
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| | A) | about 50% of economic activity takes place on just 14% of the land area. |
| | B) | about 90% of EU industry is located in Germany. |
| | C) | about 80% of economic activity is located in just 10% of the land area. |
| | D) | None of the above are true. |
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8 | |
The peripheral regions of the EU suffer from: |
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| | A) | severe weather. |
| | B) | excessive investment in agricultural activities. |
| | C) | higher than average unemployment, higher than average youth unemployment and higher than average poverty. |
| | D) | excessive dependence on world markets. |
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9 | |
Between the mid 1980s and the end of the 1990s: |
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| | A) | EU per capita incomes at the national level diverged. |
| | B) | EU per capita incomes at the national level converged, but the per capita incomes at the sub-national levels diverged. |
| | C) | EU per capita incomes at the national level diverged, but the per capita incomes at the sub-national levels converged. |
| | D) | EU per capita income distribution did not change much. |
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10 | |
Indicate the combination of facts that are true:
- (i) European integration has been accompanied by only modest relocation of industry among nations, at least when one lumps all forms of manufacturing together;
- (ii) The little movement that there has been tends to lean in the direction of manufacturing activities having become more geographically dispersed across nations, not less;
- (iii) Most European nations have become more specialised on a sector-by-sector basis;
- (iv) At the subnational level, we see that industry is become more concentrated spatially.
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| | A) | Only points (i) and (iii) are true. |
| | B) | Points (i) to (iii) are true. |
| | C) | Only points (ii) and (iv) are true. |
| | D) | All points are true. |
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11 | |
According to the Heckscher-Ohlin comparative advantage approach, a reduction in trade barriers should: |
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| | A) | lead big nations to gain industry. |
| | B) | lead small nations to gain industry. |
| | C) | lead nations to specialise in industries that are intensive dependants on the factors in which the nations are relatively well endowed. |
| | D) | None of the above. |
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12 | |
According to the new economic geography approach, a reduction in trade barriers should: |
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| | A) | lead big nations to gain industry. |
| | B) | lead small nations to gain industry. |
| | C) | lead nations to specialise in industries that are intensive dependants on the factors in which the nations are relatively well endowed. |
| | D) | None of the above. |
The diagram shows the locational equilibrium when there are two nations (North and South) and trade between them is not completely free. |
13 | |
The EE curve is steeper than the 45 degree line because as  <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=gif::::/sites/dl/free/0077103947/117919/ch09q13eq02.GIF','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (0.0K)</a>]]> increases,  <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=gif::::/sites/dl/free/0077103947/117919/ch09q13eq03.GIF','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (0.0K)</a>]]> increases less. This is because is assumed to be immobile. |
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14 | |
The KK curve is steeper than the 45 degree line because of forces; i.e. the tendency of economic activity to concentrate more than proportionally in the large region. |
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15 | |
If trade gets freer, the curve will rotate around the (½,½) point KK. |
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16 | |
If trade gets freer, industry will move to the region. |
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17 | |
If trade gets free enough, the KK curve will be steeper than the EE curve, so all industry will locate to the big region. This is called the outcome. |
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