How did the Single European Act create economic gains in the EU?
What will be an ideal response?
It was predicted that there would be more trade, lower price mark-ups, increased concentration of firms due to the ability to take advantage of scale economies, and increased price convergence. Trade among EC partners rose from 61.2 percent of the total trade of member states to 67.9 percent between 1985 and 1995. The percent of total output in each industry that is produced by the four largest firms rose in most industrial sectors. The share of world mergers and acquisitions that took place in Europe rose. It is estimated that between 300,000 and 900,000 more jobs were created, and GDP in 1994 was 1.1 to 1.5 percent greater than it would have been without the measures taken to implement the SEA and the SMP. Also, income levels began to converge, as the per capita incomes of the low-income European countries began to rise toward the average.
You might also like to view...
If the exchange rate between the yen and the dollar changed from 110 yen = $1 to 100 yen = $1, then
a. the dollar depreciated b. U.S. goods will become more expensive to the Japanese c. the dollar appreciated d. Japanese goods will become less expensive to U.S. citizens e. the demand for dollars will decrease
To reconcile net national product and national income,
a. national income is calculated first, and capital depreciation is subtracted from it to get net national product b. national income is calculated first, and indirect business taxes are subtracted from it to get net national product c. net national product is calculated first, and indirect business taxes are subtracted from it to get national income d. net national product is calculated first, and compensation of employees is added to it to get national income e. gross national product is calculated first, and capital depreciation plus nonfactor charges are subtracted to get national income
The supply-side effects of a reduction in taxes are the result of
a. increases in the disposable income of households accompanying reductions in tax rates. b. the stimulus effects of increases in government expenditures. c. increased attractiveness of productive activity relative to leisure and tax avoidance. d. reductions in interest rates that generally accompany expansionary fiscal policy.
Some nations are more involved in international trade than others, as measured by exports as a percentage of GDP. Which of the following most closely matches the exports as a percentage of GDP for the U.S. in 2009?
a. 71 percent b. 51 percent c. 31 percent d. 11 percent