McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Arts in Economics (BA Economics) , Master of Business Administration (MBA) .
Chapters
| 51. |
A tariff: |
| A. | Increases the volume of trade |
| B. | Reduces the volume of trade |
| C. | Has no effect on volume of trade |
| D. | (a) and (c) of above |
| Answer» C. Has no effect on volume of trade | |
| 52. |
A tariff is: |
| A. | A restriction on the number of export firms |
| B. | Limit on the amount of imported goods |
| C. | Tax and imports |
| D. | (b) and (c) of above |
| Answer» C. Tax and imports | |
| 53. |
What would encourage trade between two countries: |
| A. | Different tax system |
| B. | Frontier checks |
| C. | National currencies |
| D. | Reduced tariffs |
| Answer» D. Reduced tariffs | |
| 54. |
In a free trade world in which no restrictions exist, international trade will lead to: |
| A. | Reduced real living standard |
| B. | Decreased efficiency |
| C. | Increased efficiency |
| D. | Reduced real GDP |
| Answer» C. Increased efficiency | |
| 55. |
Govt. policy about exports and imports is called: |
| A. | Monetary policy |
| B. | Fiscal policy |
| C. | Commercial policy |
| D. | Finance policy |
| Answer» D. Finance policy | |
| 56. |
International trade and domestic trade differ because of: |
| A. | Trade restrictions |
| B. | Immobility of factors |
| C. | Different government policies |
| D. | All of the above |
| Answer» B. Immobility of factors | |
| 57. |
What would encourage trade between two countries? |
| A. | Different tax system |
| B. | Quality control |
| C. | Reduced tariffs |
| D. | Fixing import quota |
| Answer» A. Different tax system | |
| 58. |
In the European Union: |
| A. | All member countries have a single exchange rate |
| B. | All members set their own tariffs |
| C. | There is a common tariff against non-members |
| D. | All taxes are set the same |
| Answer» C. There is a common tariff against non-members | |
| 59. |
On the 1st January 1958, six countries signed the treaty establishing the European Economic Community (EEC), in turn establishing the foundations for the European Union. In which European capital was it signed in from which it also takes its name? |
| A. | Athens |
| B. | Brussels |
| C. | Rome |
| D. | Amsterdam |
| Answer» C. Rome | |
| 60. |
The European Union has grown to be one of the world's largest trading blocs and markets. What is the approximate size of the population of the EU? |
| A. | 500 million people |
| B. | 292 million people |
| C. | 1.3 billion people |
| D. | 127 million people |
| Answer» A. 500 million people | |
| 61. |
Which two institutions decide the Union's budget? |
| A. | The Council of Ministers and the European Commission |
| B. | The European Parliament and the European Central Bank |
| C. | The Council of Ministers and the European Parliament |
| D. | The European Central Bank and the European Commission |
| Answer» C. The Council of Ministers and the European Parliament | |
| 62. |
The European Union is one powerful global economic bloc. ASEAN is best described as being: |
| A. | A free trade zone |
| B. | A confederation of states |
| C. | A customs union |
| D. | A monetary union |
| Answer» A. A free trade zone | |
| 63. |
Which of the following EU countries are sometimes referred to as the PIGS countries? |
| A. | Portugal, Ireland. Greece, Spain |
| B. | Poland, Italy, Germany, Slovenia |
| C. | Poland, Ireland, Greece, Switzerland |
| D. | Portugal, Italy, Greece, Slovenia |
| Answer» A. Portugal, Ireland. Greece, Spain | |
| 64. |
What is the main reason behind the introduction of the euro? |
| A. | It promotes economic sovereignty |
| B. | It can protect business trading from currency fluctuations |
| C. | To allow the free movement of people |
| D. | It was a branding exercise |
| Answer» B. It can protect business trading from currency fluctuations | |
| 65. |
Which of the following are exclusive EU competencies in relation to Member States? |
| A. | Conservation of marine biological resources (common fisheries policies), common market policies, the customs union and monetary policy for Member States belonging to the Eurozone. |
| B. | The customs union, the environment, agriculture and consumer protection. |
| C. | Monetary policy for Member states belonging to the Eurozone, tourism, transport and industrial policy, EU regional Policy. |
| D. | The customs union, common commercial (trade) policies, education and culture. |
| Answer» A. Conservation of marine biological resources (common fisheries policies), common market policies, the customs union and monetary policy for Member States belonging to the Eurozone. | |
| 66. |
A common or single market will have all of the following features except: |
| A. | No internal trade barriers |
| B. | Common external tariff |
| C. | Factor and Asset mobility |
| D. | A common currency |
| Answer» D. A common currency | |
| 67. |
Which of the options below is the only characteristic of a free trade area? |
| A. | A common currency |
| B. | Common economic policy |
| C. | No internal trade barriers |
| D. | Common external tariff |
| Answer» C. No internal trade barriers | |
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