MCQs of Economics – Regional Trading Arrangements

The NAFTA is a:

Under the EU’s Common Agricultural Policy, a variable import levy equals the:

Members of the EU find that trade creation|| is fostered when their economies are:

The European Union has achieved all of the following except:

Which country is not a member of the European Union?

The European Union is an example of a/an:

Which factor of production in the United States is most likely to be made worse off (its factor payment will decrease) because of the North American Free Trade Agreement?

The implementation of the European Union has

The Common Agricultural Policy of the European Union has:

As of 2002, the ____ became the official currency union of the European Monetary System:

When several countries jointly impose common external tariffs, eliminate tariffs on each other, and eliminate barriers to the movement of labor and capital among themselves, they have formed a/na

The implementation of a common market involves all of the following except:

Under the Common Agricultural Policy exports of any surplus quantities EU produce are encouraged through the usage of:

Trade diversion takes place when:

In free trade A will import:

If A imposes a per unit tariff of $10 on imports from both B and C A will import

If A forms a customs union with B, A will import:

If A forms a customs union with C, the value of trade diversion will be:

The European Monetary Union is an example of a:

____ is said to exist when the formation of a regional trading group leads to the reduction of trade with nonmember countries in favor of member countries

A ____ is a regional trading bloc in Which member countries eliminate internal trade barriers but maintain existing barriers against countries that are not member

_____ is said to exist when the formation of a regional trading group leads to an expansion of trade above pregroup levels

Which level of economic integration best applies to the U.S economy?

A positive, dynamic effect of economic integration is illustrated by:

Suppose that tomatoes from Mexico face a 20 percent tariff in the United States and a 25 percent tariff in Canada. If the United States and Canada maintain free trade between each other, the these two countries belong to a:

Trade creation will more likely outweigh trade diversion for Country X that forms a customs union if the level of tariffs in Country X prior to the customs union is ____ and the total number of countries forming the customs union is _____

When imports from a higher-cost supplier within a customs union replace imports from a lower-cost supplier outside the custom union, there exists

Criticisms against the North American Free Trade Agreement include all of the following except:

Trade creation takes place when: