Question 1

A customs union:&#10;A)is a deeper form of integration than an economic union&#10;B)is a deeper form of integration than a trade union&#10;C)is a deeper form of integration than a monetary union&#10;D)is a deeper form of integration than a free trade area

Accepted Answer

A customs union involves not only free trade in goods among member countries but also a common external tariff on imports from non-member countries. This deeper level of integration sets it apart from a free trade area, which only eliminates tariffs on trade among the member countries. An economic union involves not only a customs union but also the free movement of factors of production (labor, capital) across borders, while a monetary union involves the adoption of a common currency. A trade union is not a form of economic integration.

Question 2

___________ is an important principle for the functioning of the EU Common Market.&#10;A)Mutual recognition&#10;B)Harmonized sectors&#10;C)Subsidiarity&#10;D)All of the above answers&#10;E)None of the above answers

Accepted Answer

All of the options listed are important principles for the functioning of the EU Common Market. Mutual recognition allows products legally sold in one member state to be sold in another, harmonized sectors refer to areas where the EU has standardized laws across member states to facilitate trade and cooperation, and subsidiarity is a principle dictating that decisions should be made as closely as possible to the citizen, ensuring that action at the EU level is taken only when it is more effective than action taken at national, regional, or local levels.

Question 3

When travelling across Europe without needing to show your passport at the border, you are benefitting from the:&#10;A)Copenhagen Agreement&#10;B)Treaty of Lisbon&#10;C)Schengen Agreement&#10;D)Treaty of Bologna

Accepted Answer

B

Question 4

Which transactions are recorded in the balance of payments?&#10;A)Donations to charities based in another country&#10;B)Payments of membership dues in international organizations&#10;C)Transfers from citizens working abroad to their parents&#10;D)All of the above

Accepted Answer

All of the transactions mentioned in options A, B, and C are recorded in the balance of payments. The balance of payments is a record of all economic transactions between a country and the rest of the world over a given period of time, including donations, transfers, and payments of membership dues.

Question 5

The criteria that new member countries of the European Union have to fulfil to be accepted as member in the European Union are also known as:&#10;A)Maastricht criteria&#10;B)Copenhagen criteria&#10;C)Schengen criteria&#10;D)Amsterdam criteria

Accepted Answer

The Copenhagen criteria are the criteria that new member countries of the European Union have to fulfil to be accepted as a member in the European Union. The criteria were established at the European Council in Copenhagen in June 1993, and are named after the city where they were agreed upon. The criteria include a stable democratic system, a functioning market economy, and the adoption of the EU's body of laws and regulations (known as the acquis communautaire).

Question 6

Business travel between Poland and Germany has become much more difficult over the past decade

Accepted Answer

There are no indications or evidence to suggest that business travel between Poland and Germany has become much more difficult over the past decade. In fact, with both countries being members of the European Union and the Schengen Area, business travel between them should be relatively straightforward.

Question 7

The Single European Act establishing the European Single Market came into effect on the first of January of which year?&#10;A)1983&#10;B)1993&#10;C)1998&#10;D)2003

Accepted Answer

The Single European Act establishing the European Single Market came into effect on the first of January 1993.

Question 8

A monetary union is where countries share a common currency and monetary policy.

Accepted Answer

In a monetary union, member countries adopt a common currency and entrust the responsibility of monetary policy to a centralized body, such as a central bank. Examples include the Eurozone, which includes 19 European countries that use the euro as their official currency, and the Eastern Caribbean Currency Union, which includes 8 Caribbean countries that use the Eastern Caribbean dollar.

Question 9

The Council of Europe is another name for the Council of the European Union

Accepted Answer

The Council of Europe is a separate international organization with 47 member states, promoting cooperation and human rights across Europe. The Council of the European Union (also called the Council of Ministers) is one of the main decision-making bodies of the European Union, composed of ministers from the EU member states.

Question 10

Which of the following was not a major element of economic reforms in Central and Eastern Europe in the 1990s?&#10;A)Nationalization&#10;B)Liberalization&#10;C)Privatization&#10;D)Stabilization

Accepted Answer

Nationalization was not a major element of economic reforms in Central and Eastern Europe in the 1990s. The other three choices (liberalization, privatization, and stabilization) were major elements of economic reforms in the region during the 1990s.

Question 11

The single European education area was established in a contract signed in the Italian city of:&#10;A)Bologna&#10;B)Milan&#10;C)Rome&#10;D)Venice

Accepted Answer

The answer of The single European education area was established...

Question 12

The four freedoms established in the Single European Act are:&#10;A)Free movement of people, goods, services and capital&#10;B)Freedom from oppression, servitude, torture and dictatorship&#10;C)Freedom to vote for representatives in local, regional, national and European parliaments&#10;D)Freedom from monopolies, oligopolies, unfair practices, and unfair subsidies

Accepted Answer

The answer of The four freedoms established in the Single...

Question 13

Which statement about the euro is not correct?&#10;A)The Maastricht Treaty established criteria than countries had to fulfil to be allowed to join the euro&#10;B)The euro does not have clearly defined procedures for countries that wish to leave the eurozone&#10;C)In 2011, the euro was official currency in all pre-2005 member countries of the EU&#10;D)The European Central Bank is responsible for monetary policy in the euro-zone

Accepted Answer

The answer of Which statement about the euro is not...

Question 14

The common market of the EU is also known as EU Multiple Market.

Accepted Answer

The answer of The common market of the EU is...

Question 15

The European Constitution is the main basis of law in the European Union.

Accepted Answer

The answer of The European Constitution is the main basis...

Deck 7: Exchange Rates