Quiz 3 Economic Integration

Which of the following is the primary goal of economic integration?

• Reducing environmental pollution

• Increasing political stability

• Reducing barriers to trade and investment

• Promoting cultural exchanges

Which type of economic integration involves the elimination of tariffs between member countries and a common external tariff against non-members?

• Free Trade Area

• Customs Union

• Common Market

• Economic Union

The European Union (EU) is an example of which level of economic integration?

• Free Trade Area

• Customs Union

• Common Market

• Economic Union

Which organization is known for establishing the North American Free Trade Agreement (NAFTA)?

• ASEAN

• EU

• WTO

• None of the above

Which of the following is a potential disadvantage of economic integration?

• Increased trade barriers

• Reduced economic growth

• Loss of sovereignty

• Increased political conflicts

Which of the following is NOT a feature of a Common Market?

• Free movement of goods

• Free movement of services

• Free movement of labor and capital

• Unified fiscal policies

Which economic theory suggests that countries can gain from trade by specializing in the production of goods they can produce most efficiently?

• Comparative Advantage

• Absolute Advantage

• Protectionism

• Mercantilism

Which of the following organizations primarily aims at economic integration among its member states?

• NATO

• UN

• WTO

• OPEC

Which of the following is an example of a Free Trade Area?

• European Union (EU)

• United States-Mexico-Canada Agreement (USMCA)

• Southern Common Market (Mercosur)

• Organization of the Petroleum Exporting Countries (OPEC)

Arrange the following stages of economic integration in the correct order from the least integrated to the most integrated:

1. 1. Economic Union

2. 2. Free Trade Area

3. 3. Customs Union

4. 4. Common Market

• 2, 3, 4, 1

• 3, 2, 1, 4

• 1, 4, 3, 2

• 4, 3, 2, 1