AGB 302 Week 5 HW Exam with
Complete Solutions
Europe - ANSWER-The movement toward regional economic integration has been most
successful in ____.
common market - ANSWER-A(n) ____ has no barriers to trade between member
countries, includes a common external trade policy, and allows factors of production to
move freely between members.
economic union - ANSWER-A(n) ___ entails even closer economic integration and
cooperation than a common market.
creates incentives to increase political cooperation as well. - ANSWER-Linking
neighboring countries economically and making them interdependent:
European Parliament - ANSWER-The ____ is primarily a consultative rather than
legislative body.
Denmark - ANSWER-Three long-term EU members, Great Britain, ________, and
Sweden, have not adopted the euro.
Asia-Pacific Economic Cooperation - ANSWER-The ____ was established to increase
multinational cooperation in view of the economic rise of the Pacific nations and the
growing interdependence within a region.
European Commission - ANSWER-The emerging role of the ________ in competition
policy suggests the EU is increasingly willing and able to intervene and impose
conditions on companies proposing mergers and acquisitions.
A free trade area - ANSWER-Country X and Country Y reach an agreement to boost
bilateral trade. They agree to remove all barriers to the trade of goods and services.
They, however, are free to determine their own trade policies with regard to
nonmembers. Which level of economic integration is this an example of?
Ability of factors of production to move freely between members - ANSWER-Which
feature of a common market differentiates it from a customs union?
premium - ANSWER-Assuming the 30-day forward exchange rate were $1 = ×130 and
the spot exchange rate were $1 = ×120, the dollar is selling at a ___ on the 30-day
forward market.
Complete Solutions
Europe - ANSWER-The movement toward regional economic integration has been most
successful in ____.
common market - ANSWER-A(n) ____ has no barriers to trade between member
countries, includes a common external trade policy, and allows factors of production to
move freely between members.
economic union - ANSWER-A(n) ___ entails even closer economic integration and
cooperation than a common market.
creates incentives to increase political cooperation as well. - ANSWER-Linking
neighboring countries economically and making them interdependent:
European Parliament - ANSWER-The ____ is primarily a consultative rather than
legislative body.
Denmark - ANSWER-Three long-term EU members, Great Britain, ________, and
Sweden, have not adopted the euro.
Asia-Pacific Economic Cooperation - ANSWER-The ____ was established to increase
multinational cooperation in view of the economic rise of the Pacific nations and the
growing interdependence within a region.
European Commission - ANSWER-The emerging role of the ________ in competition
policy suggests the EU is increasingly willing and able to intervene and impose
conditions on companies proposing mergers and acquisitions.
A free trade area - ANSWER-Country X and Country Y reach an agreement to boost
bilateral trade. They agree to remove all barriers to the trade of goods and services.
They, however, are free to determine their own trade policies with regard to
nonmembers. Which level of economic integration is this an example of?
Ability of factors of production to move freely between members - ANSWER-Which
feature of a common market differentiates it from a customs union?
premium - ANSWER-Assuming the 30-day forward exchange rate were $1 = ×130 and
the spot exchange rate were $1 = ×120, the dollar is selling at a ___ on the 30-day
forward market.
