COI 01 – The United States and the Global Economy
97. A trade bloc is:
98. Which of the following nations is not a member of the European Union?
99. The primary economic advantage of the European Union (EU) to its members is that:
COI 01 – The United States and the Global Economy
100. The main problem posed by trade blocs for nonmember nations is that:
101. The European Union (EU) comprises a group of European nations that have:
102. The countries comprising NAFTA are:
COI 01 – The United States and the Global Economy
103. Which of the following sets of countries were among those admitted to the European
Union in 2004?
104. Which of the following pairs of countries were admitted to the European Union in 2007?
105. The North American Free Trade Agreement (NAFTA):
COI 01 – The United States and the Global Economy
106. Which of the following has been an outcome of the North American Free Trade
Agreement (NAFTA)?
107. A number of European nations have agreed to use the ___________ as a common
currency.
108. Which of these groups of nations are all members of the Euro Zone?
COI 01 – The United States and the Global Economy
109. Which of the following nations is not a member of the Euro Zone?
110. The nations of the Euro Zone have:
111. The introduction and use of the euro is expected to:
COI 01 – The United States and the Global Economy
112. NAFTA refers to the:
113. Critics of the North American Free Trade Agreement (NAFTA) feared that it would:
114. Since the signing of the North American Free Trade Agreement (NAFTA) in 1993:
COI 01 – The United States and the Global Economy
115. Trade Adjustment Assistance:
116. The Trade Adjustment Assistance Act of 2002:
117. Supporters of Trade Adjustment Assistance claim that it benefits an economy because it:
COI 01 – The United States and the Global Economy
118. Critics of Trade Adjustment Assistance argue that:
119. “Offshoring:”
120. Supporters of offshoring claim that its benefits include:
COI 01 – The United States and the Global Economy
121. Offshoring often results from:
122. Global competition:
123. (Consider This) Madison, the CPA, is faster than Mason, the house painter, at both
accounting services and painting. This means that:
COI 01 – The United States and the Global Economy
124. (Consider This) According to Dallas Federal Reserve economist W. Michael Cox, taken
to its extreme, the logic of “buying American” implies that:
125. (Last Word) In economic terms, the purpose of the fair-trade movement is to:
126. (Last Word) Most economists have concluded that fair-trade practices:
COI 01 – The United States and the Global Economy
127. Immigration of workers is an example of a goods and services flow.
128. The United States exports a higher U.S. dollar volume of goods to Canada than to any
other nation.
129. Specialized production and international trade increase a nation’s productivity and
increase the availability of goods and services.
130. A nation has a comparative advantage in some product when it can produce that good at
a lower domestic opportunity cost than can a potential trading partner.
COI 01 – The United States and the Global Economy
131. Terms of trade of 1X = 5Y will be acceptable to two countries that have domestic
opportunity costs of 1X = 4Y and 1X = 1Y, respectively.
132. Mexican importers are suppliers of pesos in the foreign exchange market.
133. When the dollar price of yen rises, the dollar appreciates in value relative to the yen.
134. Import quotas are taxes or duties on imported products.
COI 01 – The United States and the Global Economy
135. Barriers to free trade impair efficiency in the international allocation of resources.
136. The most-favored-nation clause in reciprocal trade agreements means that any tariff
reductions the United States negotiates with a specific nation will automatically apply to
many other nations.
137. The WTO is comprised of 27 European nations.
138. The current, on-going round of trade negotiations in the World Trade Organization is
called the Doha Round.
COI 01 – The United States and the Global Economy
139. The European Union (EU) is a free trade zone comprising all the nations of eastern and
western Europe.
140. France, Germany, and Italy are all members of the Euro zone.
141. NAFTA is an international accord that will eliminate all tariffs and quotas worldwide by
the year 2025.