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1 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) The Single European Act committed ____________ governments to a __________ in 1992 |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | European union, single market |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | Western European, single currency area |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | C)![](/olcweb/styles/shared/spacer.gif) | European Union, single currency area |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | D)![](/olcweb/styles/shared/spacer.gif) | Western European, single market |
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2 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) All of the following are benefits of the Single Market except that |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | it allows countries to exploit their comparative advantage more fully |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | firms could more readily exploit economies of scale |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | C)![](/olcweb/styles/shared/spacer.gif) | it intensified competition |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | D)![](/olcweb/styles/shared/spacer.gif) | it is easier to book holidays in member countries |
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3 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) A monetary union means __________, ____________ and ____________ |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | permanently fixed capital movements, floating exchange rates, a fixed structure of interest rates |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | permanently fixed exchange rates, free capital movements, a single interest rate |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | C)![](/olcweb/styles/shared/spacer.gif) | a common currency, a single central bank, common monetary policy |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | D)![](/olcweb/styles/shared/spacer.gif) | a common currency, floating exchange rates, common monetary policy |
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4 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) The Maastricht criteria for entry to the EMU are that applicants should have |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | low inflation |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | low interest rates |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | C)![](/olcweb/styles/shared/spacer.gif) | stable nominal exchange rates |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | D)![](/olcweb/styles/shared/spacer.gif) | budget deficits and government debt under control |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | E)![](/olcweb/styles/shared/spacer.gif) | all of the above |
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5 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) In the EMU a country's competitiveness can change because of __________ |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | interest rate adjustment |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | central bank intervention in the forex |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | C)![](/olcweb/styles/shared/spacer.gif) | domestic wage and price adjustment |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | D)![](/olcweb/styles/shared/spacer.gif) | devaluation |
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6 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) The transition of Eastern European economies to market economics involves introducing ________ and ________ |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | the profit motive, deregulation |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | planning committees, incentives |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | C)![](/olcweb/styles/shared/spacer.gif) | artificially low prices, controlling demand |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | D)![](/olcweb/styles/shared/spacer.gif) | planning committees, demand management |
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7 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) Economic transition involves high inflation because ____________ and ___________ |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | of high monetary growth, high wages |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | of high budget deficits, devaluation |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | C)![](/olcweb/styles/shared/spacer.gif) | of high monetary growth, devaluation |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | D)![](/olcweb/styles/shared/spacer.gif) | prices surge from an artificially low level to their equilibrium level, the inflation tax is required as a source of government revenue |
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8 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) Output fell sharply in the transition economies because |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | banks were unable to function |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | there was little corporate control |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | C)![](/olcweb/styles/shared/spacer.gif) | vital infrastructure was missing |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | D)![](/olcweb/styles/shared/spacer.gif) | all of the above |
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9 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) The Maastricht criteria for joining EMU is that a country must have a high growth rate |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | TRUE |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | FALSE |
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10 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) The UK is a member of the EMU |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | TRUE |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | FALSE |
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11 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) Fiscal federalism is when a central government sets taxes and expenditure rules that apply to its constituent states or countries |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | TRUE |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | FALSE |
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12 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) Most transition economies are seeking membership of the EU |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | TRUE |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | FALSE |