What is the main purpose of the European Union (EU) single market?

• To allow free trade and movement of resources between member states

• To create a single currency for all European countries

• To establish a common language across Europe

• To eliminate all forms of government in member states

When did the single market of the European Union come into existence?

• 1 January 1993

• 1 January 2000

• 1 January 1985

• 1 January 2013

Which of the following is NOT a feature of the EU single market?

• Quotas on imports and exports between member states

• No barriers to trade between member states

• No tariffs on goods and services traded within the single market

• Free transfer of resources such as capital and labour

What does the enlargement of the EU provide to new members?

• Open access to an export market of over 500 million people

• A new national currency

• A reduction in population

• A ban on international trade

Which of the following is a consistent standard in the EU single market?

• A professional qualification valid in one member state is valid in all member states

• Each country sets its own standards for goods and services

• Only capital can be transferred freely, not labour

• Tariffs are applied to all goods traded within the EU

What is the common external tariff in the context of the EU single market?

• A tariff applied to imports into the EU from non-member countries

• A tax on goods traded within the EU

• A fee for transferring resources between member states

• A quota on exports to non-EU countries

What is one advantage of the single market for businesses?

• Increased levels of demand results from access to a larger marketplace.

• Businesses face higher costs due to regulations.

• Markets become smaller and less competitive.

• Access to fewer capital-raising deals.

How do larger markets in a single market benefit businesses?

• They result in larger scale production, lowering average costs of output.

• They increase the cost of production.

• They limit the number of products a business can sell.

• They reduce the need for economies of scale.

What does freeing of capital markets allow businesses to do in the single market?

• Access the best finance and capital-raising deals throughout Europe.

• Restrict access to finance.

• Increase the cost of borrowing.

• Limit capital movement between countries.

What is a benefit of greater employer access to labour markets in the single market?

• Workers from all member states are potential employees.

• Employers can only hire locally.

• Labour markets become less competitive.

• Wages are fixed across all member states.