Question 1

Which of the following is considered to be the ultimate controlling authority within the European Union?

Accepted Answer

The European Council is considered the ultimate controlling authority within the EU as it sets the EU's overall political direction and priorities.

Question 2

The Maastricht Treaty called for

Accepted Answer

The Maastricht Treaty called for the establishment of the independent European Central Bank (ECB), which is responsible for managing the euro and implementing monetary policy in the Eurozone countries.

Answer: D
 The Maastricht Treaty called for the formation of a single market for the European Union, which aimed to promote the free movement of goods, services, capital, and people within the EU. This included the elimination of trade barriers, harmonization of regulations, and the adoption of a common currency, the euro.

Therefore, both A and D are correct choices.

Question 3

The _____ proposed that all impediments to the formation of a single market be eliminated by December 31,1992,resulting in the Single European Act.

Accepted Answer

The Delors Commission, led by Jacques Delors, proposed and recommended initiatives to the European Community to achieve a single market with the elimination of all barriers by December 31, 1992. This led to the creation of the Single European Act in 1986, which aimed to create a single market within the European Community.

Question 4

Which of the following countries has adopted the euro as its currency?

Accepted Answer

France has adopted the euro as its currency. Great Britain, Denmark, Sweden, and Switzerland have not adopted the euro as their currency.

Question 5

Which of the following is true of the Treaty of Lisbon that was signed in 2007?

Accepted Answer

The Treaty of Lisbon created the position of the president of the European Council, providing for a more coherent and consistent representation of the EU in external affairs. The other options are incorrect:

A) The European Commission's role in competition policy has been defined by previous treaties.

B) The commission can be taken to the court for non-compliance, but this wasn't anything new to the Lisbon treaty.

D) The Lisbon treaty did not specifically address competition in the retail banking and insurance industries.

E) The Court of Justice was established before the Treaty of Lisbon.

Question 6

A key advantage of adopting the euro is that it

Accepted Answer

One of the key advantages of adopting the euro is that it lowers foreign exchange and hedging costs in Europe. The euro eliminates the need for currency exchange and reduces the costs associated with hedging against currency fluctuations. This makes it easier and cheaper for businesses to operate in multiple Eurozone countries, which can lead to increased trade and investment.

Question 7

Which of the following has 751 members as of 2016,and is directly elected by the populations of the member-states?

Accepted Answer

The European Parliament has 751 members as of 2016 and is directly elected by the populations of the member-states. The Court of Justice is responsible for ensuring that EU laws are interpreted and applied in the same way in all EU countries, while the European Council is composed of heads of state or government and sets the EU's overall political direction and priorities. The European Commission is responsible for proposing and implementing EU laws and policies. The term "European Community" is no longer used, as it was replaced by the term "European Union."

Question 8

The European Council is considered to be the ultimate controlling authority within the European Union (EU)because

Accepted Answer

The European Council is the ultimate controlling authority within the EU because draft legislation from the European Commission can only become EU law if the council agrees to it. The council is composed of the heads of state or government from each member-state, giving it a high level of political power within the EU. However, it does not have a monopoly on proposing EU legislation, as this is also a power shared with the Commission and the European Parliament. The council does not have 751 members that are directly elected, as this refers to the number of members in the European Parliament. The council is also not the supreme appeals court for EU law, as this role is fulfilled by the European Court of Justice.

Question 9

Which of the following is true of the Court of Justice?

Accepted Answer

The Court of Justice is the supreme court for European Union law, with the power to interpret and enforce EU treaties and legislation.

The other options are incorrect: 
A) The judges are required to act independently and impartially, not as representatives of national interests.
B) The Court of Justice includes judges from all EU member states, not just a few selected countries.
D) Member countries can bring other member countries to the Court of Justice for violating EU law. 
E) Member countries can bring the commission or the council to the Court of Justice for violating EU law.

Question 10

Which of the following is true about the European Parliament?

Accepted Answer

The European Parliament is directly elected by the populations of the member-states.

Answer: C 
 The European Parliament is primarily a legislative body and has the power to propose, amend and adopt legislation.

Answer: D 
 The European Parliament has the power to veto laws, including single-market legislation.

Therefore, the true statements are B, C and D. A and E are false statements.

Question 11

The _____ committed European Community members to adopt a common currency by January 1,1999

Accepted Answer

The Maastricht Treaty, signed on February 7, 1992, committed European Community members to adopt a common currency, known as the euro, by January 1, 1999.

Question 12

The euro zone is comprised of the

Accepted Answer

The euro zone is made up of 19 member nations within the European Union that have adopted the euro as their common currency.

Question 13

The price of a bouquet of roses in France is 4 euros.Tom Smith,a frequent international traveler found that a similar bouquet of roses cost only 3 euros in Germany.A benefit of adopting the euro as a common currency is that it

Accepted Answer

Adopting the euro as a common currency makes it easier to compare prices across Europe, as there is no need to worry about exchange rates or currency conversions. This benefit reduces transaction costs for businesses and consumers and promotes price transparency.

Question 14

Which of the following meets in Strasbourg,France,is primarily a consultative rather than a legislative body,and debates legislation proposed by the commission and forwarded to it by the council?

Accepted Answer

The European Parliament meets in Strasbourg, France and is primarily a consultative body rather than a legislative body, despite having some powers to pass legislation. It debates legislation proposed by the Commission and forwarded to it by the Council. The other options (B, C, D, E) do not fit the description of a consultative body that debates legislation proposed by the Commission and forwarded to it by the Council.

Question 15

The member countries of BERPHO,a regional free trade area wanted to adopt a common currency,the "BERPH." The "BERPH" was modeled after and,in fact,was exactly similar to the euro.Establishment of the "BERPH" requires participating national governments to

Accepted Answer

Adoption of a common currency requires participating national governments to give up control over monetary policy, as a single central bank manages the currency for all member countries. A sound fiscal situation, stable exchange rates, democratic nature, and price stability may be desirable for the success of the common currency, but they are not specifically required for its establishment.

Question 16

Which of the following is a drawback of adopting the euro?

Accepted Answer

Adopting the euro means that a country gives up its national currency and therefore loses control over its own monetary policy. This can be a drawback as it makes it difficult for a country to respond to economic situations and crises using tools such as interest rates, exchange rates, and money supply adjustments.

Question 17

Which of the following was a change proposed by the Single European Act?

Accepted Answer

The Single European Act proposed the principle of "mutual recognition" which meant that products satisfying the standards of one member state would be allowed to circulate freely in all other member states. This was aimed at reducing barriers to trade and promoting economic integration. None of the other options were proposed by the Single European Act.

Question 18

Establishment of the euro required participating national governments to

Accepted Answer

The establishment of the euro required participating national governments to give up control over their monetary policy and adopt the monetary policy set by the European Central Bank. This was necessary to create a single currency and a single monetary policy for the eurozone.

Question 19

Over time the euro will impact the pan-European capital market by leading to

Accepted Answer

The euro will lead to an increased efficiency with which investment funds are allocated. This is because the single currency eliminates exchange rate risk and reduces transaction costs, making it easier for investors to diversify their portfolios across different European countries. As a result, capital will flow to the most productive and profitable companies, which will ultimately benefit the overall economy. A, B, D, and E are incorrect because there is no evidence or logical reasoning to support these claims.

Question 20

Which of the following is true of the Single European Act?

Accepted Answer

The Single European Act provided the impetus for the restructuring of substantial sections of European industry, which led to increased competition and economic efficiencies. It did not propose to place frontier controls among European Community countries (A), abolish the principle of "mutual recognition" to product standards (B), reduce costs indirectly by preventing national suppliers to compete (C), or reduce costs directly by preventing lower-cost suppliers into national economies (E).

Quiz 9: Regional Economic Integration