1.Of the following four answers only one does not provide an economic reason for having transferred the powers from Member States to the EU with respect to competition policy.

Select one:

a.Competition policy is about correcting market failures in the EU. Correcting market failures in the EU is always an argument for transferring powers to a higher level of governance like the EU.

b.The exclusive competence of the EU in the competition policy area gives the EU bargaining power against other major economies in the world.

c.The creation of the Common Market is the creation of a large market across borders in the EU member states. The Competition policy of the EU could thus be seen as an instrument to deal with cross-border anti-competitive practices.

d.Competition policy is an insurance policy of the EU against non-tariff trade barriers from countries outside the European Union, the UK, the USA, and other major trading partners.

2.The economics of the tariffs used to raise EU food prices above the price floor are quite similar to the standard tariff analysis presented in Chapter 4.

Select one:

a.True

b.False