International Economics 16th Edition By Robert Carbaugh – Test Bank

International Economics 16th Edition By Robert Carbaugh – Test Bank

Chapter 08

1. The European Union is primarily intended to permit:
a. Countries to adopt scientific tariffs on imports
b. An agricultural commodity cartel within the group
c. The adoption of export tariffs for revenue purposes
d. Free movement of resources and products among member nations
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS: United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS: Types of Regional Trading Arrangements
KEYWORDS: BLOOM’S: Remember
DATE CREATED: 6/22/2016 3:21 PM
DATE MODIFIED: 6/22/2016 3:21 PM

2. Which of the following represents the stage where economic integration is most complete?
a. Economic union
b. Customs union
c. Monetary union
d. Common market
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS: United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS: Types of Regional Trading Arrangements
KEYWORDS: BLOOM’S: Remember
DATE CREATED: 6/22/2016 3:21 PM
DATE MODIFIED: 6/22/2016 3:21 PM

3. Which of the following represents the stage where economic integration is least complete?
a. Free trade area
b. Monetary union
c. Common market
d. Customs union
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS: United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS: Types of Regional Trading Arrangements
KEYWORDS: BLOOM’S: Remember
DATE CREATED: 6/22/2016 3:21 PM
DATE MODIFIED: 6/22/2016 3:21 PM

4. Customs union theory reasons that the formation of a customs union will decrease members’ real welfare when the:
a. Trade diversion effect exceeds the trade creation effect
b. Trade production effect exceeds the trade consumption effect
c. Trade consumption effect exceeds the trade production effect
d. Trade creation effect exceeds the trade diversion effect
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS: United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS: Types of Regional Trading Arrangements
KEYWORDS: BLOOM’S: Understand
DATE CREATED: 6/22/2016 3:21 PM
DATE MODIFIED: 6/22/2016 3:21 PM

5. Which economic integration scheme is solely intended to abolish trade restrictions among member countries, while setting up common tariffs against nonmembers?
a. Economic union
b. Common market
c. Free trade area
d. Customs union
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS: United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS: Types of Regional Trading Arrangements
KEYWORDS: BLOOM’S: Remember
DATE CREATED: 6/22/2016 3:21 PM
DATE MODIFIED: 6/22/2016 3:21 PM

6. By 1992 the European Union had become a full-fledged:
a. Economic union
b. Monetary union
c. Common market
d. Fiscal union
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS: United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS: Types of Regional Trading Arrangements
KEYWORDS: BLOOM’S: Remember
DATE CREATED: 6/22/2016 3:21 PM
DATE MODIFIED: 6/22/2016 3:21 PM

7. Which device has the European Union used to equalize farm-product import prices with politically determined European Union prices, regardless of shifts in world prices?
a. Variable levies
b. Import quotas
c. Import subsidies
d. Domestic content regulations
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS: United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS: The European Union
KEYWORDS: BLOOM’S: Remember
DATE CREATED: 6/22/2016 3:21 PM
DATE MODIFIED: 6/22/2016 3:21 PM