Reference no: EM132313230

Questions -

Question 1 - What factors are arguably linked to unemployment rates in Europe?

a. Collective bargaining

b. All answers are correct

c. Minimum wage regulations

d. Unemployment benefits

Question 2 - An increase competition on the goods market due to economic integration induces pressure on production costs. What production costs will most likely be affected?

a. Price of materials

b. Price of equipment

c. Labour costs

d. Tariffs

Question 3 - Trade integration may have an impact on labour markets. As a result of trade integration two industries of an economy face very different experiences. One industry is expanding while the other is shrinking. What would be an immediate effect on a fully flexible labour market?

a. Involuntary unemployment would increase

b. Wages should increase in the expanding industry

c. Wages should increase in the shrinking industry

d. Wages should decrease in the expanding industry

Question 4 - Trade integration may have an impact on labour markets. As a result of trade integration two industries of an economy face very different experiences. One industry is expanding while the other is shrinking. What would be a plausible effect on a labour market with rigidities?

a. Possible increase in inequality

b. Increase in involuntary unemployment

c. An increase support for protectionism

d. All answers are correct

Question 5 - What do we understand by social dumping?

a. Larger wages in new Member States

b. Lower wages in Member States

c. Undermining the value of social protection for workers

d. Lower sum of wages and social protection

Question 6 - In what way has the European integration impacted labour markets and the debates around them?

a. Increasing calls for social harmonisation

b. Decreasing labour mobility

c. Decreasing wages (on average)

d. Decreasing social protection

Question 7 - Why social harmonisation has not been implemented in the EU?

a. Social harmonisation would not affect competitiveness in the labour market

b. Because labour market decisions are based on total costs (wage and non-wage costs)

c. Social harmonisation would increase nominal wages in poorer countries

d. Because the EU only cares about efficiency and not on social protection

Question 8 - Who wins and who lose when two countries allow migration?

a. Only the "net" sending country wins

b. Everyone wins

c. There are winners and losers in both countries

d. Only the "net" recipient country wins

Question 9 - Migration as consequence of European integration should...

a. Increase labour mobility

b. Decrease unemployment rates everywhere

c. Increase unemployment rates everywhere

d. Decrease labour mobility

Question 10 - Labour mobility has been low between Member States. What is one of the barriers to mobility that explain this fact?

a. Addition of new member States' nationals

b. Unemployment benefits

c. Negative impact of migration on the EU economy

d. Equal pensions systems across countries

Question 11 - Indicate 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 less concentrated spatially.

a. All points are true

b. Only points ii and iv are true

c. Points i to iii are true

d. Only points i and iii are true

Question 12 - According 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. All answers are incorrect

d. lead nations to specialize in industries that are intensive dependants on the factors in which the nations are relatively well endowed.

Question 13 - According to the new economic geography approach, a reduction in trade barriers should:

a. lead big nations to gain industry.

b. lead nations to specialize in industries that are intensive dependants on the factors in which the nations are relatively well endowed.

c. All answers are incorrect

d. lead small nations to gain industry.

Question 14 - Between the mid 1980s and the end of the 1990s:

a. EU per capita incomes at the national level diverged, but the per capita incomes at the sub-national levels converged.

b. EU per capita incomes at the national level converged, but per capita incomes at the sub-national levels diverged.

c. EU per capita income distribution did not change much.

d. EU per capita incomes at the national level diverged.

Question 15 - The peripheral regions of the EU suffer from:

a. higher than average poverty

b. higher than average unemployment

c. higher than average youth unemployment

d. All answers are correct

Question 16 - The main difference between a frictional barrier to trade and an import tariff is that...

a. imports increase with the frictional barrier

b. The revenue from the frictional barrier is 0

c. imports increase with the tariff

d. The revenue from the frictional barrier is larger than the revenue from the tariff

Question 17 - Who will lose from the implementation of a Preferential Trade Agreement?

a. The Partner country

b. The Home country for sure

c. Countries excluded from the PTA

d. All the answers are incorrect

Question 18 - What does imply the implementation of a Preferential Trade Agreement?

a. A decrease of imports from the partner country

b. The elimination of all barriers to trade between partners

c. An increase of exports from countries excluded from the PTA

d. An increase of imports from the partner country

Question 19 - The Commission imposes anti-dumping duties on the goods of nations that it accuses of:

a. selling high-quality products at a price that is less than those charged by EU producers

b. selling goods at a price that is below the cost of production

c. selling high-quality products at too high a price.

d. selling low-quality products at too high a price

Question 20 - What is more likely to happen to trade between UK and the EU after Brexit?

a. EU imports wii increase

b. UK imports will decrease

c. EU exports to UK will increase

d. UK imports will increase