50) Which level of economic integration has no restrictions on internal trade and free flow of
capital among member nations and lacks only political unity to become a political union?
A) common market
B) free trade area
C) regional cooperation group
D) customs union
E) preferential trade agreement
51) The Treaty of ________ established the European Economic Community (EEC) in 1957 and
called for common external tariffs and the gradual elimination of intramarket tariffs, quotas, and
other trade barriers.
A) Kent
B) Paris
C) Rome
D) Cannes
E) Maastricht
52) The most fully integrated form of regional cooperation is a
A) political union.
B) common market.
C) regional cooperation for development (RCD).
D) customs union.
E) free trade area (FTA).
53) A ________ involves complete political and economic integration, either voluntary or
enforced.
A) political union
B) common market
C) regional cooperation for development (RCD)
D) customs union
E) free trade area (FTA)
54) Though now disbanded, what agreement was considered to be the most notable enforced
political union of the last 40 years?
A) NATO
B) NAFTA
C) MERCOSUR
D) COMECON
E) LAFTA
55) Britain and countries that were formerly part of the British Empire are an example of a
________ of nations.
A) autarchy
B) monocracy
C) commonwealth
D) proprietary colony
E) trade association
56) The ________ Treaty created the European Union with 12 nations.
A) Kent
B) Paris
C) Rome
D) Cannes
E) Maastricht
57) What is true of the Maastricht Treaty?
A) It serves as a deterrent for the political unification of the European countries.
B) It restricts movement of goods between the United Kingdom and France.
C) It allows for the free movement of persons between the United States and Canada.
D) It allows for the free movement of goods throughout the member states of the European
Union.
E) It is the first European treaty whose terms have been universally accepted.
58) What type of political union is mostly based on economic history and a sense of tradition?
A) conglomerate
B) community
C) commonwealth
D) proprietary colony
E) trade association
59) Which treaty allows for the free movement of goods, persons, services, and capital
throughout the member states of the European community?
A) Rome Treaty
B) Berlin Treaty
C) Maastricht Treaty
D) Barcelona Treaty
E) Athens Treaty
60) Of all the multinational market groups, none has been more secure in its cooperation or more
important economically than the
A) Newly Independent States.
B) Economic Community of West African States.
C) Commonwealth of Independent States.
D) European Union.
E) Trans-Pacific Union.
61) Which institution has the responsibility to debate and decide which proposals of the Single
European Act to accept as binding on European Union members?
A) the European Commission
B) the European Parliament
C) the Council of Ministers
D) the European Court of Justice
E) the European Committee of the Regions
62) Which European Union institution originally had only a consultative role but can now amend
and adopt Union legislation?
A) the European Parliament
B) the Council of Ministers
C) the Court of Justice
D) the European Commission
E) the European Central Bank
63) The institutions of the European Union form a(n) ________ pattern.
A) bilateral
B) unitary
C) federal
D) provincial
E) global
64) The European Commission, the Council of Ministers, the European Parliament, and the
Court of Justice are institutions of the
A) COMECON.
B) European Free Trade Area.
C) European Economic Area.
D) European Union.
E) Trans-Pacific Union.
65) The European ________ initiates policy and supervises its observance by member states, and
it proposes and supervises execution of laws and policies.
A) Parliament
B) Committee of the Regions
C) Commission
D) Court of Auditors
E) Court of Justice
66) The ________ is the decision-making body of the European Union that can enact into law all
proposals by majority vote except for changes in tax rates on products and services, which
require unanimous vote.
A) United Nations
B) World Trade Organization
C) European Commission
D) Commonwealth of Independent States
E) Council of Ministers
67) The various legal instruments used by the European Union
A) issue regulations that are binding against the member states if the national courts of the
member states agree to the regulations.
B) must confer with the United Nations before issuing directives against member states.
C) direct all disputes involving the European Union law to the International Court of Justice.
D) have the authority to issue regulations that bind the member states directly.
E) require the approval of individual nations to address binding decisions against an enterprise of
that nation.
68) Which EU institution drafted the Maastricht Treaty that was presented to the European
Union member states for ratification?
A) the United Nations
B) the World Trade Organization
C) the European Commission
D) the Commonwealth Delineation
E) the Council of Ministers
69) The parameters of the creation of a common currency for the European Union were
established by
A) the Economic and Monetary Union provision of the Maastricht Treaty.
B) the Single Currency provision of the Treaty of Rome.
C) the Enhanced Cooperation provision of the Treaty of Utrecht.
D) the Economic Union provision of the Treaty of Vienna.
E) the Free Trade provision of the Anglo-Irish Treaty.
70) Which EU institution is responsible for challenging any measures incompatible with the
Treaty of Rome and for passing judgment, at the request of a national court, on the interpretation
or validity of points of European Union Law?
A) the International Court of Justice
B) the European Court of Justice
C) the International Criminal Court
D) the European Common Judicial Council
E) the European Security Council
71) Which country rejected the euro, causing a debate about the EU’s future?
A) Austria
B) Greece
C) Finland
D) Denmark
E) Spain
72) Which statement is true about the European Parliament?
A) It has extensive budgetary powers that allow it to be involved in major EU expenditures.
B) It serves as a purely consultative body.
C) It is responsible for debating and deciding which proposals of the Single European Act to
accept as binding on EU members.
D) It initiates policy and supervises its observance by member states.
E) It is responsible for challenging any measures incompatible with the Treaty of Rome.
73) The Economic and Monetary Union provision of the Maastricht Treaty established the
parameters for the creation of the
A) dollar.
B) pound.
C) rupee.
D) ruble.
E) euro.
74) The ________ increases the authority of the institutions of the European Union and is
designed to accommodate the changes brought about by the monetary union and the admission of
new members.
A) Treaty of Rome
B) Single European Act
C) Maastricht Treaty
D) Expansion Act
E) Amsterdam Treaty
75) What long-term challenge is the European Union facing?
A) eliminating all tariffs on internal trade amongst member nations
B) establishing a common currency for the Union
C) including Asia into the Union
D) limiting the political aspects of the Union
E) finding ways to contract the Union
76) With the expansion of the European Union, existing members fear
A) retaliation by the Soviet Union against them.
B) a flood of cheap labor into their countries.
C) that OPEC will cut off supplies to countries supporting the expansion of the European Union.
D) free movement of capital amongst the member nations.
E) that they would need to close the borders between member nations.
77) One of the long-term challenges facing the European Union in the next 50 years is
A) deciding about further enlargement.
B) creation of a common currency.
C) reducing the free flow of capital between its member nations.
D) deciding on how to control the individualistic European population.
E) establishing a court that would settle the disputes among member nations.
78) What is true of the European Court of Justice?
A) It initiates policy and supervises its observance by member states.
B) Its decisions require approval by the top three nations of the European Union.
C) Its decisions are final and cannot be appealed in national courts.
D) It primarily has a consultative role in interpreting the nuances of the EU law.
E) It can amend and adopt Union legislation.
79) Eastern Europe and the Baltic states, satellite nations of the former Soviet Union, have
moved steadily toward adopting aspects of
A) capitalism.
B) autocracy.
C) Marxist–socialism.
D) despotism.
E) communism.
80) Eastern Europe and the Baltic states, satellite nations of the former Soviet Union, have
moved steadily toward establishing postcommunist market reforms. As a result,
A) the region is against establishing free markets.
B) new business opportunities are emerging in this region.
C) all of the eastern European countries can be viewed as one entity.
D) all of these countries have the same level of cultural assimilation.
E) all of these countries have had the same success in economic reform and growth.
81) The Czech Republic, Hungary, the Slovak Republic, and Poland have become members of
the
A) UNDP.
B) OECD.
C) ASEAN.
D) LAIA.
E) APEC.