Adopting the Single European Act had broad popular support; the Treaty on European Union was more controversial.
Indicate whether the statement is true or false
Question 2 - What is a pollution haven, and is there evidence that pollution havens exist?
What will be an ideal response?
Question 3 - A common response to stop a depreciation of a currency is to use contractionary monetary policy, which could lead to a recession.
Indicate whether the statement is true or false
Question 4 - After trade opens, the short run impact on the income of the specific factor that is relatively scarce will be
A) a decrease in its income.
B) an increase in its income.
C) no change in its income.
D) indeterminate, income effects are not possible to know.
Question 5 - Other nations had tried economic union in the past, and since adopting a common currency had shown economic benefits for them, the nations of Europe decided to try it too.
Indicate whether the statement is true or false
Question 6 - Is there one optimal environmental standard for the entire world? If not, how might using trade barriers to enforce country-specific environmental standards reduce overall well-being?
What will be an ideal response?
Question 7 - The J-curve shows that, after a currency depreciation,
A) the current account is likely to worsen before it improves.
B) the current account is likely to improve before it worsens.
C) the current account will remain unchanged after all adjustments have taken place.
D) the current account is difficult to change in the long run.
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