IB Final Exam Comprehensive
Questions and Solutions
Graded A+
Which one of the following is the process whereby countries in a geographic region cooperate
to reduce or eliminate barriers to the international flow of products, people, or capital?
A.
Free trade area
B.
Customs union
C.
Political union
D.
Economic union
E.
Regional economic integration (regionalism) - Answer: E
A ________ is the lowest extent of national integration.
A.
regional trading bloc
B.
,customs union
C.
free trade area
D.
trade diversion
E.
political union - Answer: C
What is the main difference between a free trade area and a customs union?
A.
A political union requires member nations to accept a common stance on economic and
political matters regarding nonmember nations.
B.
Countries in a customs union cannot negotiate as a single entity with other supranational
organizations.
C.
Members of a customs union agree to treat trade with all nonmember nations in a similar
manner.
D.
An economic union goes beyond the demands of a common market.
E.
A common market integrates the elements of free trade areas and customs unions. - Answer: C
Which of the following is a positive effect of regional trade agreements?
A.
,increased consumer savings
B.
Trade diversion
C.
Trade creation
D.
Shifts in employment
E.
Political remapping - Answer: C
Which of the following is a negative effect of regional trade agreements?
A.
Political cooperation
B.
Trade creation
C.
Employment opportunities
D.
Cultural homogenization
E.
Loss of national sovereignty - Answer: E
Which of the following is a main regional trading bloc?
A.
, Atlantic Free Trade Agreement
B.
European Union
C.
Asian Common Market
D.
Association of Pacific Nations
E.
United Nations - Answer: B
Today, the EU has ________ members.
A. 35
B. 28
C. 6
D. 15
E. 20 - Answer: B
The currency of the EU is the ________.
A. euro
B. pound
C. dollar
D. yen
E. peso - Answer: A
Questions and Solutions
Graded A+
Which one of the following is the process whereby countries in a geographic region cooperate
to reduce or eliminate barriers to the international flow of products, people, or capital?
A.
Free trade area
B.
Customs union
C.
Political union
D.
Economic union
E.
Regional economic integration (regionalism) - Answer: E
A ________ is the lowest extent of national integration.
A.
regional trading bloc
B.
,customs union
C.
free trade area
D.
trade diversion
E.
political union - Answer: C
What is the main difference between a free trade area and a customs union?
A.
A political union requires member nations to accept a common stance on economic and
political matters regarding nonmember nations.
B.
Countries in a customs union cannot negotiate as a single entity with other supranational
organizations.
C.
Members of a customs union agree to treat trade with all nonmember nations in a similar
manner.
D.
An economic union goes beyond the demands of a common market.
E.
A common market integrates the elements of free trade areas and customs unions. - Answer: C
Which of the following is a positive effect of regional trade agreements?
A.
,increased consumer savings
B.
Trade diversion
C.
Trade creation
D.
Shifts in employment
E.
Political remapping - Answer: C
Which of the following is a negative effect of regional trade agreements?
A.
Political cooperation
B.
Trade creation
C.
Employment opportunities
D.
Cultural homogenization
E.
Loss of national sovereignty - Answer: E
Which of the following is a main regional trading bloc?
A.
, Atlantic Free Trade Agreement
B.
European Union
C.
Asian Common Market
D.
Association of Pacific Nations
E.
United Nations - Answer: B
Today, the EU has ________ members.
A. 35
B. 28
C. 6
D. 15
E. 20 - Answer: B
The currency of the EU is the ________.
A. euro
B. pound
C. dollar
D. yen
E. peso - Answer: A
