Question

6) When a country does not meet the requirements of the SGP, it is declared in excessive deficit by the Council. What is the sanction imposed

Select one:

a. Fine of 0.2 per cent of the delinquent’s GDP. Resources are frozen until the procedure is lifted

b. Fine of 0.5 per cent of the delinquent’s GDP, and an additional 0.2 per cent of GDP for further non-compliance

c. Fine of 0.5 per cent of the delinquent’s GDP. Resources are frozen until the procedure is lifted

d. Fine of 0.2 per cent of the delinquent’s GDP, and a up to 0.5 per cent of GDP

7)

Whether the debt legacy of many EU countries is bearable or not, triggered a lot of debate. Among the many controversial solutions, the more discussed are:

Select one or more:

a. Bailouts

b. Public debt restructuring

c. Stress tests

d. Eurobond

12)

The main area of centralization in the EU has been:

Select one:

a. Policies affecting the single market

b. Labour market policies

c. Social policies

d. All of the above

13)

Most preferential trade agreements in the world are “free trade agreements” rather than customs unions like the EU. This is because

Select one:

a. Economic advantage

b. All of the above

c. Trade barriers

d. Political integration

15)

Indicate the combination of facts that are true:

(i) European integration has been accompanied by a great relocation of industry among nations

(ii) The little movement that there has been tends to lean in the direction of manufacturing activities having become more geographically concentrated across nations.
(iii) Most European nations have become more specialized on a sector-by-sector basis;
(iv) At the subnational level, we see that industry is become more concentrated spatially.

Select one:

a. Points (i) to (iii) are true

b. Only points (i) and (iii) are true

c. All points are true

d. Only points (iii) and (iv) are true

Clear my choice

16)

Of the following four answers only one does not provide an economic reason for having transferred the powers from Member States to the EU with respect to competition policy

Select one:

a. The exclusive competence of the EU in the competition policy area gives the EU and EU markets credibility and negotiation power vis-à-vis other trading areas and trade powers in the world.

b. Competition policy is an insurance policy of the EU against anti-competitive behavior from countries outside the European Union, thus securing the EU towards non-tariff trade barriers.

c. The creation of the Common Market is the creation of a large market across borders in the EU member states. The Competition policy of the EU could thus be seen as an instrument to deal with these cross border issues.

d. Competition policy is about correcting market failures. Correcting market failures is always an argument for transferring powers to a higher level of governance like the EU

Clear my choice

18)

Which of the following statements represent a correct description of what happens under perfect collusion in the BE-COMP diagram setting?

(More than one answer is correct):

Select one or more:

a. Perfect collusion is easily maintained by firms

b. Under perfect collusion the total number of firms theoretically could be 2n

c. Under perfect collusion the price that can be taken in the merged market can be compared to a monopoly price where the firms act as though they were only one single firm
actthough they were only one single firm

d. Under perfect collusion the size of firms are higher than under full competition

14)

Which of these institutions is formed by one representative from each EU member

Select one:

a. The Commission

b. None of the above

c. The European Council

d. Council of the European Union

Clear my choice

21)

The Taylor rule states that the following variables affect the interest rate position: i) the deviation of inflation from its (implicit or explicit) target ii) the money growth iii) the output gap, which is the difference between actual and potential GDP, measured as a percentage of potential GDP iv) the velocity of money

Select one:

a. iii) and iv)

b. i) and ii)

c. i), iii and iv)

d. i) and iii).

Clear my choice

24)

We know that one country’s fiscal policy actions can help or hurt other countries. Which of this statement about fiscal policy spillovers is true (Select all that apply)

Select one or more:

a. All of the above

b. A low degree of synchronization means fewer asymmetric shocks

c. High interest rates have a negative effect on long economic growth

d. Heavy borrowing from one country is a sign of fiscal indiscipline

25)

The joint rescue operation decided in Europe in May 2010 was called

Select one:

a. EBC

b. PSI

c. EFSF

d. Troika

Clear my choice

Answer 1

6). Fine of 0.5 percent of the deliequent's gdp resources are frozen until the procedure is uplifted.

7) public debt restructuring.

12). All of the above

13) economic advantage

15) only point 1 and 3 true

16) The creation of the Common Market is the creation of a large market across borders in the EU member states. The Competition policy of the EU could thus be seen as an instrument to deal with these cross border issues.

18) perfect collusion is easily maintained by firms

14) the european council

21) 1, 2, 3

24) all of the above

25) EBS