Deck 15: If the Euro Fails, Europe Fails

Question 1

The introduction of the euro was supposed to encourage European unification.

Answer 1

True

Question 2

Before the adoption of the euro, countries experiencing economic difficulty were not allowed to devalue their currencies.

Answer 2

False

Question 3

Yugoslavia was an artificial country created after World War I.

Answer 3

True

Question 4

America's first commitment to defending foreign countries came with the signing of the North Atlantic Treaty in 1949.

Question 5

French President Charles de Gaulle put France back into the integrated military structure of NATO.

Question 6

The European Commission is the most important body responsible for running EU's civil service and making policy.

Question 7

The free trade area is considered the highest stage of economic integration among countries.

Question 8

A common market is the stage of integration when countries lower their tariffs to each other and build a common tariff toward the outside world.

Question 9

The United States spends nearly 5 percent of GDP on defense, while most European NATO members spend less than 2 percent.

Question 10

Trade blocs are considered selfish, as they look after only the needs of their own producers and keep out non-bloc goods.

Question 11

Which of the following statements is a feature of the 2009 Treaty of Lisbon?

A) It created an international law in favor of military solutions.
B) It created a common EU foreign and security policy.
C) It created a presidency and foreign minister for the EU.
D) It created an alliance between Portugal and Spain.
E) It created a sovereign debt crisis.

Question 12

Which of the following aptly demonstrates how weak the EU was?

A) the bloody breakup of Yugoslavia
B) the dependence of Europe on America for security
C) the end of the Cold War
D) the sovereign debt crisis brought on by Greece
E) the resentment that Europe had for America

Question 13

European reaction toward American culture demonstrates the relevance of ________ in IR.

A) soft power
B) hard power
C) economic power
D) balanced power
E) hegemonic power

Question 14

Which of the following held the North Atlantic Treaty Organization together?

A) common culture
B) shared economy
C) the crumbling of other alliances
D) the threat of the Soviet Union
E) common interests in the Middle East

Question 15

In order to break their dependence on the United States, Europe created the highly ineffectual ________.

A) North Atlantic Treaty Organization
B) Eurocorps
C) Kosovo Force
D) United Nations Protection Force
E) Implementation Force

Question 16

Casus foederis refers to ________.

A) an unelected government official
B) a tax on imports
C) the reason for forming an alliance
D) a numerical limit on imports
E) the reason for limiting government spending

Question 17

Which of the following was successful in helping to propel West Europe out of its post-World War II slump?

A) the European Coal and Steel Community
B) the Kosovo Force
C) the North American Free Trade Agreement
D) the North Atlantic Treaty Organization
E) the European Central Bank

Question 18

Which of the following statements pertaining to the growth of the Common Market and the European Union is NOT true?

A) The original members were France, West Germany, Italy, Belgium, the Netherlands, and Luxembourg.
B) President of France Charles de Gaulle argued that the British were not complete Europeans.
C) The Common Market was a complete federation like the United States and not a confederation.
D) Romania and Bulgaria joined the European Union in 2007.
E) The U.S. dollar declined sharply against the euro in 2009, resulting in a richer EU.

Question 19

Which of the following statements pertaining to trade blocs is true?

A) An outward looking trade bloc is open to foreign competition and provides rising living standards.
B) The theory of comparative advantage does not work as it creates inefficiency.
C) Australia and New Zealand have the most inefficient farms in the world as they subsidize a lot.
D) The United States has had a peaceful and calm relationship with the EU concerning trade issues.
E) A positive trade relationship with U.S has been the major concern and duty for Europe.

Question 20

Which of the following is an example of countries both lowering their tariffs to each other and building a common tariff toward the outside world?

A) NAFTA
B) original EEC
C) EU
D) KFOR
E) Zollverein

Question 21

Why did the euro not work for trade during the 1990s?

A) It had no single political authority.
B) It included transaction costs.
C) It did not allow for easy currency change.
D) It was never a reserve currency.
E) It was unable to balance taxes and government spending.

Question 22

Which of the following refers to a current activity of NATO?

A) peacekeeping in Afghanistan
B) collaborating closely with the EU for security purposes
C) fighting Soviet expansion
D) establishing democracy in Germany
E) "incineration without representation"

Question 23

Which of the following is a disadvantage of a united Europe?

A) It would bring down the euro.
B) It would splinter NATO.
C) It would increase the free-rider problem.
D) It would mean each country giving up much of its sovereignty.
E) It would lead to a communist takeover.

Question 24

Which was the first EU country to require loan packages from its fellow EU member states following the 2008 global economic crisis, triggering a sovereign debt crisis?

A) Germany
B) Italy
C) Ireland
D) Greece
E) France

Question 25

Which of the following institutions is equivalent to the U.S. Federal Reserve Board and supervises matters dealing with the euro?

A) the European Coal and Steel Community
B) the European Central Bank
C) the European Economic Community
D) the European Monetary Union
E) the European Commission

Question 26

Cutting government expenditures in order to balance the budget is known as ________.

A) austerity
B) bailout
C) devalue
D) default
E) tariff

Question 27

Which of the following institutions mediates trade disputes and sometimes rules against the EU for utilizing unfair trading practices (especially tariffs)?

A) the European Union
B) the European Central Bank
C) the World Trade Organization
D) the North Atlantic Treaty Organization
E) the Implementation Force

Question 28

Which of the following is NOT a source of economic imbalance for EU countries?

A) large welfare states
B) budget deficits
C) young populations
D) slow economic growth
E) high taxes

Question 29

Which of the following statements is an example of an "ever closer union"?

A) the interlocking of economies in West Europe
B) the calling for Europe des patries by Charles de Gaulle of France
C) the building of the Berlin Wall by the East German regime
D) the building of France's own nuclear force
E) the controlling of the strategic Turkish Straits

Question 30

How do politics and economics intersect at the global level? What influence do politics have on economics and vice versa? Is it possible to consider one without considering the other? Has globalization affected the relationship between politics and economics?

Question 31

What are the stages of integration? What types of events take place at each stage? Provide examples of each.

Question 32

How did the European Union develop? Specifically, discuss the various stages of integration. Is this integration permanent or is there a possibility that the EU will actually become less integrated in the coming years? Explain why or why not.

Question 33

What are the prospects for NATO evolving into an organization similar to the EU? What did the breakup of Yugoslavia show about European unity?

Question 34

Why has Europe pursued the economic track via the EU more than the security track via NATO? Have they always focused more on one than the other? If so, which one and why? Discuss both internal and external reasons for these decisions.