Chapter 16

Instructions

Choose your answers from a-c by clicking the radio button next to each choice and then press 'Submit' to get your score.

Question 1

Which sector has the EU sought to liberalize during the 2000s?

a) Labour market

b) Manufacturing

c) Services

Question 2

The EU has a higher GDP per capita than Japan but lower than the US.

a) True

b) False

Question 3

What is an optimal currency area?

a) An area with a high exchange rate

b) An area suitable for the creation of a single currency

c) An area suffering excessive speculative flows

Question 4

What is the overriding goal of the ECB?

a) Price stability

b) Exchange rate stability

c) Low unemployment

Question 5

Why was the Stability and Growth Pact created?

a) To reduce structural unemployment

b) In order to avoid government intervention in the economy

c) In order to ensure compatibility between monetary and fiscal policy amongst the Euro countries

Question 6

Why did the SGP fail to penalize France and Germany for excessive deficits in 2003?

a) Statistical errors

b) Political power

c) Instability created by the war in Iraq

Question 7

When did the Lisbon Agenda begin?

a) 1992

b) 1995

c) 2000

Question 8

What were the oppositions to the original draft of the Services Directive?

a) It failed to liberalize the European services sector sufficiently

b) Incorrect definition of 'services'

c) Risked a 'race to the bottom'

Question 9

In which country is there a more bank-oriented finance system?

a) UK

b) Ireland

c) Germany

Question 10

The introduction of the Euro is likely to stabilize the international financial system.

a) True

b) False

Oxford University Press, Online Resource Centre, Chapter 16.

Chapter 16

Instructions

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

Question 7

Question 8

Question 9

Question 10