Describe the history and consequent deepening as the European Union developed. Which treaties created which level of economic integration? Do countries have the ability to participate in some levels of integration and not others? Give specific examples
What will be an ideal response?
The Treaty of Rome created the basics for a free trade area as well as a political infrastructure for noneconomic integration.
The Single European Act created a common market among the participants and dealt with an outstanding customs union issues.
The Treaty on European Union (or Maastricht Treaty) brought the participating countries into economic union.
Some countries (such as Norway and Switzerland) participate in the common market but are not members of the EU. Only 12 countries currently participate in the treaty on European Union. For example, the UK, Denmark, and Sweden will never be required to use the euro.
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Because of the system defined by the U.S. Constitution, people and media often call the national government in Washington D.C. ______________
Fill in the blank(s) with the appropriate word(s).
Steel production creates pollution. If a tax is imposed on steel production equal to the marginal external cost of the pollution it creates, ______
A. steel producers will cut pollution to zero B. the deadweight loss created by steel producers will be cut to zero C. the market price of steel will rise by the amount of the tax D. steel producers will continue to produce the inefficient quantity of steel
A lump sum tax is one for which the individual's liability does not depend on behavior.
A. True B. False C. Uncertain
Graphically, consumer surplus is the area:
a. above the equilibrium price and below the demand curve. b. below the equilibrium price and above the supply curve. c. above the equilibrium price and below the supply curve. d. below the equilibrium price and above the demand curve. e. above the equilibrium price and above the supply curve.