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Integration and Exchange Rates

Total questions: 17

Worksheet time: 13mins

Name
Class
Date
1.

What is Economic Integration?

a)

the concept or idea of fairness in economics, particularly in regard to taxation or welfare economics.

b)

the increase or improvement in the inflation-adjusted market value of the goods and services produced by an economy in a financial year.

c)

The process of a country implanting integrating new policies in the government.

d)

A process in which countries collaborate to integrate their policies together such as free trade ideas and custom unions.

2.

Goods and services that are bought from other countries.

a)

imports

b)

joint venture

c)

exports

d)

infrastructure

3.

The value of of one currency expressed in terms of another currency.

(a)  

4.

What can cause exchange rates to change

a)

Us investment prospects increase

b)

Us interest rates increase

c)

location

d)

Trade Barriers

5.

Which are benefits of a small organization?

a)

Often able to adapt quickly to meet changing customer needs

b)

May be able to set prices that other firms have to follow

c)

Can be managed and controlled by the public

d)

May be diversified in several markets and products, so risks are spread

6.

Government intervention is the the regulatory action taken by a government that aims to change decisions made by individuals, organizations, or groups regarding economic and social matters.

a)

True

b)

False

7.

A total ban on imports or exports of a product.

a)

G20

b)

embargo

c)

exporting

d)

dumping

8.

US demand of foreign goods can change exchange rates?

a)

True

b)

False

9.

Being unable to offer a more specialized and exclusive service to customers is a disadvantage of being a business that operates on a large scale .

a)

True

b)

False

10.

What is a Custom Union?

a)

An agreement between countries, similar to free trade areas, but they barrier against any import into the customs union.

b)

An group that increases the opportunities for exporting and importing products.

c)

A group of governments that run with a common currency and central bank.

d)

All of the above

11.

According to the table, what is the USD equivalent of 1 Australian?

a)

0.97 USD

b)

1.32 USD

c)

1.28 USD

d)

1.03 USD

12.

According to the table, what is the Euro equivalent of 1 USD?

a)

1 Euro

b)

0.76 Euros

c)

0.63 Euros

d)

0.97 Euros

13.

Which is an economic factor for a monetary union?

a)

Common market run with a common currency and central bank

b)

weather and climate of the region

c)

type of government that exists

d)

law influencing business activity

14.

Diseconomies of scale occur if a firm grows beyond its ability to operate efficiently.

a)

True

b)

False

15.

Which is NOT a free trade area?

a)

Australia-Hong Kong

b)

Greenland-Norway

c)

Alizana de Pacifico

d)

West Africa-France

16.

What is a Custom Union?

a)

An agreement between countries, similar to free trade areas, but they barrier against any import into the customs union.

b)

An group that increases the opportunities for exporting and importing products.

c)

A group of governments that run with a common currency and central bank.

d)

All of the above

17.

Which of the following are examples of custom unions?

a)

Andenan Community

b)

South American Trade Alliance

c)

Gulf cooperation Council

d)

South African Economic and monetary union

e)

The European fiscal Union