Many nations have formed customs unions that ended tariffs and trade restrictions among its members, and adopted uniform tariffs for nonmember countries. Which of the following is a successful example of such a customs union?
(A) Asia-Pacific Economic Cooperation (APEC)
(B) World Trade Organization (WTO)
(C) European Union (EU)
(D) North American Free Trade Agreement (NAFTA).
Ans: (C) European Union (EU)
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Suppose Brian Adams wants to perform a concert in the City Park in Corner Brook, Newfoundland. The city officials argue that the only way the concert can be given permission to be performed in the City Park is if it is free of charge. If Brian Adams agrees to performing free of charge, then the concert is:
a) rival and nonexcludable b) a private good c) excludable d) nonexcludable
To adjust nominal GDP for a given year to obtain real GDP, it is necessary to divide nominal GDP by the price index (expressed in hundredths) for that year.
Answer the following statement true (T) or false (F)
Which of the following integration types exploits economies of scope?
A. Vertical integration B. Conglomerate integration C. Cointegration D. Horizontal integration
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.