1. A current account deficit

Select one:

a. Can be associated to a Government Budget Deficit.

b. Is never present in developing countries

c. Is due to high national savings.

d. None of the above.

e. Is always a problem.

2 Which of the following statements is true?

Select one:

a. None of the above.

b. A Customs Union implies free mobility of labor and capital among the member countries.

c. A Customs Union implies that countries form a single market.

d. A Customs Union implies that countries adopt the same currency.

e. A Customs Union implies that countries adopt a common external tariff.

3 Which of the following statements is true?

Select one:

a. A Common Market implies free mobility of labor and capital among the member countries.

b. A Free Trade Area implies that countries adopt a common external tariff.

c. A Customs Union implies that countries form a single market.

d. None of the above.

e. A Common Market implies that countries adopt the same currency.

4 One of the benefits of economic integration is:

Select one:

a. All of the above

b. International Trade increases

c. Prices increase.

d. Monopolies become stronger.

e. Firms are forced to merge.

5 Which of the following statements is true?

Select one:

a. A Free Trade Area implies that countries form a single market

b. A Free Trade Area implies free mobility of labor and capital among the member countries.

c. None of the above.

d. A Free Trade Area implies that countries adopt the same currency.

e. A Free Trade Area implies that countries adopt a common external tariff

6 Import quotas are

Select one:

a. always present in free trade areas.

b. limitations on the maximum amount of a good that can be imported.

c. the same as import tariffs.

d. limitations on the maximum amount of a good that can be exported.

e. subsidies to imports