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Self-test questions
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1The cohesion spending of the EU now account for about one fifth EU's budget.
A)True
B)False



2About two-thirds of the cohesion spending of the EU goes to regions whose incomes are less than 75 per cent of the EU27 average – the so-called less developed regions.
A)True
B)False



3Another 13 per cent goes to ‘transition’ regions whose incomes are between 75 and 85 per cent of the EU27 average.
A)True
B)False



4The remaining 20 per cent can be spent in all other regions.
A)True
B)False



5The EU Cohesion Fund spending is channelized through four funds: two structural funds, the cohesion fund, and the CAP fund.
A)True
B)False



6Which country gets the highest national receipts on regional spending according to the multiannual financial framework, 2014-2020?
A)Spain
B)Germany (Eastern Regions)
C)Poland
D)Greece



7Economic activity in the EU is very concentrated geographically, for example:
A)about 50 per cent of economic activity takes place on just 14 per cent of the land area.
B)about 90 per cent of EU industry is located in Germany.
C)about 80 per cent of economic activity is located in just 10 per cent of the land area.
D)None of the above is true.



8The peripheral regions of the EU suffer from:
A)deforestation.
B)excessive investment in agricultural activities.
C)higher than average unemployment, higher than average youth unemployment and higher than average poverty.
D)excessive dependence on world markets.



9Between the mid 1980s and the end of the 1990s:
A)EU per capita incomes at the national level diverged.
B)EU per capita incomes at the national level converged, but per capita incomes at the sub-national levels diverged.
C)EU per capita incomes at the national level diverged, but the per capita incomes at the sub-national levels converged.
D)EU per capita income distribution did not change much.



10Indicate the combination of facts that are true:
(i) European integration has been accompanied by only modest relocation of industry among nations, at least when one lumps all forms of manufacturing together;
(ii) The little movement that there has been tends to lean in the direction of manufacturing activities having become more geographically dispersed across nations, not less;
(iii) Most European nations have become more specialized on a sector-by-sector basis;
(iv) At the subnational level, we see that industry is become more concentrated spatially.
A)Only points (i) and (iii) are true.
B)Points (i) to (iii) are true.
C)Only points (ii) and (iv) are true.
D)All points are true.



11According to the Heckscher-Ohlin comparative advantage approach, a reduction in trade barriers should:
A)lead big nations to gain industry.
B)lead small nations to gain industry.
C)lead nations to specialize in industries that are intensive dependants on the factors in which the nations are relatively well endowed.
D)None of the above.



12According to the new economic geography approach, a reduction in trade barriers should:
A)lead big nations to gain industry.
B)lead small nations to gain industry.
C)lead nations to specialize in industries that are intensive dependants on the factors in which the nations are relatively well endowed.
D)None of the above.



13The Krugman specialization index tells us:
A)what the fraction of manufacturing activity would have to change in order to make the particular region’s sector shares line up with the sector shares of the average of all other EU regions.
B)what the fraction of manufacturing activity would have to change in order to make the particular nation’s sector shares line up with the sector shares of the average of all other EU nations.
C)What the fraction of services activity would have to change in order to make the particular nation’s sector shares line up with the sector shares of the average of all other EU nations.
D)What the fraction of services activity would have to change in order to make the particular region’s sector shares line up with the sector shares of the average of all other EU regions.



14Which of the following elements cannot be considered as a dispersion force?
A)The price of land is usually higher in highly populated areas.
B)Congestion.
C)Technology spillovers
D)Tougher competition in dense markets.



15According to the demand-linked circular causality:
A)Firms tend to locate where intermediate goods are cheaper.
B)Firms tend to locate where the range of locally available intermediate goods is wider.
C)Firms tend to locate where the market is bigger.
D)Firms tend to locate where the production cost is lower.



16According to the cost-linked circular causality:
A)Firms tend to locate where the range of locally available final goods is wider.
B)Firms tend to locate where the range of locally available intermediate goods is wider.
C)Firms tend to locate where the market is bigger.
D)Firms tend to locate where tariffs are lower



17The accessibility index
A)measures a region’s closeness to other regions that have important economic activity.
B)increases as the region is remote from the rest of its partners.
C)measures the average distance between a region and its closer neighbors.
D)is never affected by the form of transport used to access close markets.



18Every region in the EU is eligible for cohesion spending of one type or another.
A)True
B)False



19Over the period 2007-2013, almost ____ of the total cohesion funds were spent on the first objective “Convergence”.
A)10 per cent
B)30 per cent
C)50 per cent
D)80 per cent



20The guiding lights for the 2014-2020 Multiannual Cohesion spending are the three thematic objectives of the 2020 strategy: smart growth, sustainable growth and inclusive growth
A)True
B)False







Author OLCOnline Learning Center

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