MIDTERM Flashcards
1
Q
When did the euro notes and coins first circulate in public?
a) 1999
b) 2000
c) 2001
d) 2002
A
D
2
Q
Which treaty established the European Union?
a) Treaty of Rome
b) Treaty of Lisbon
c) Maastricht Treaty
d) Treaty of Paris
A
C
3
Q
Which countries were NOT part of the first wave of EU enlargement to Eastern Europe in 2004?
a) Bulgaria, Romania
b) Poland, Czech Republic, Hungary
c) Croatia, Slovenia
d) Estonia, Latvia, Lithuania
A
A
4
Q
What was the main goal of the Maastricht Treaty?
a) To introduce the euro
b) To establish the European Economic Community
c) To create a single market
d) To enhance EU efficiency and democratic legitimacy
A
A
5
Q
Which country did not qualify according to the Convergence Criteria but joined the Eurozone in 2001?
a) Spain
b) Greece
c) Portugal
d) Ireland
A
B
6
Q
Which institution is the primary decision-making body of the EU?
a) European Commission
b) European Parliament
c) Council of the European Union
d) European Council
A
C
7
Q
Which institution frames and implements the EU’s monetary policy?
a) European Commission
b) European Central Bank
c) Council of the European Union
d) European Parliament
A
B
8
Q
Who chairs the Foreign Affairs Council?
a) The rotating EU presidency minister
b) The President of the European Council
c) The EU High Representative for Foreign Affairs and Security Policy
d) The President of the European Commission
A
C
9
Q
Which institution has the authority to propose legislation to the European Parliament and the Council?
a) European Court of Justice
b) European Council
c) European Commission
d) Council of the European Union
A
C
10
Q
How long is the term for the High Representative of the Union for Foreign Affairs and Security Policy?
a) 3 years
b) 4 years
c) 5 years
d) 6 years
A
C
11
Q
What percentage of world exports did the EU account for in 2020?
a) 12.7%
b) 29.4%
c) 31.4%
d) 14.9%
A
C
12
Q
In the EU’s new trade strategy, which of the following is a key concept?
a) Resilient Trade Policy
b) Open Strategic Autonomy
c) Protectionist Trade Policy
d) Isolationist Trade Measures
A
B
13
Q
Which country is NOT among the top 10 trade partners of the EU in 2021?
a) Norway
b) China
c) Japan
d) Brazil
A
D
14
Q
According to the document, which entity holds the largest share of world exports in goods?
a) EU
b) US
c) China
d) India
A
C
15
Q
What role was established as part of the EU’s new trade strategy to enhance foreign market surveillance?
a) Chief Trade Enforcement Officer (CTEO)
b) Trade Defense Coordinator (TDC)
c) Market Surveillance Manager (MSM)
d) Export Control Officer (ECO)
A
A
16
Q
In what year did the European Economic Community (EEC) transform into the European Union (EU)?
a) 1986
b) 1992
c) 1995
d) 2004
A
B
17
Q
What was the primary goal of the Single European Act?
a) To introduce the euro
b) To expand the EU membership
c) To establish a single market
d) To create a common foreign policy
A
C
18
Q
The Schengen Agreement, signed in 1985, aimed at:
a) Creating a single currency
b) Eliminating border controls
c) Establishing a common defense policy
d) Harmonizing tax laws
A
B
19
Q
This country had a national referendum to vote on its EU membership-
a) Greece
b) United Kingdom
c) Denmark
d) Italy
A
B
20
Q
Which institution has exclusive executive responsibilities in the EU?
a) European Commission
b) European Council
c) European Parliament
d) Court of Justice of the European Union
A
A
21
Q
Which body is known as the “guardian of the treaties” in the EU?
a) European Parliament
b) European Commission
c) Court of Justice of the European Union
d) European Council
A
B
22
Q
The European Central Bank (ECB) is headquartered in:
a) Brussels
b) Luxembourg
c) Frankfurt
d) Strasbourg
A
C
23
Q
Which Treaty explicitly allowed for the withdrawal of a member state from the EU?
a) Treaty of Paris
b) Treaty of Rome
c) Treaty of Nice
d) Treaty of Lisbon
A
D
24
Q
The European Parliament meets in:
a) Brussels
b) Strasbourg
c) Luxembourg
d) All of the above
A
D
25
The EU's Common Commercial Policy includes all of the following EXCEPT:
a) Trade defence measures
b) Development aid
c) Trade agreements
d) Customs union
B
26
In 2021, which country was NOT among the top 10 trading partners with the EU?
a) Norway
b) United Kingdom
c) India
d) Australia
D
27
Which of the following is a main policy tool of the EU's Common Commercial Policy?
a) Monetary policy
b) Social policy
c) Trade defense
d) Environmental policy
A
28
Which agreement is an example of the EU's Free Trade Agreements?
a) NAFTA
b) Korea-EU FTA
c) USMCA
d) TPP
B
29
The euro replaced national currencies in 12 of the 15 EU countries in 2002.
T
30
The EU's enlargement to Eastern Europe in 2004 included 10 countries including Bulgaria and Romania.
F
31
The Treaty of Rome was the first to recognize the possibility for a Member State to withdraw from the Union.
F
32
The Treaty of Rome established the European Coal and Steel Community.
F
33
The European Commission acts as the guardian of the treaties.
T
34
The Council of the European Union and the European Council are the same institution according to the Treaty of Lisbon.
F
35
The European Central Bank is an independent institution of the EU and has control over both euro and non-euro areas according to the Treaty on the European Union.
T - independent, control over non-eurozone areas.
F - Treaty of the European Union (Treaty on the Functioning of the European Union)
36
The European Parliament conducts foreign exchange operations.
F
37
Each EU country holds the presidency of the Council of the European Union on a 6-month motivational basis.
T - 6 month
F - "motivational" - "rotational"
38
Extra-EU exports accounted for 31.4% of world exports of goods in 2020.
T - 12.7% (31.4% = overall)
39
The EU is the world's largest trading power when combining both intra and extra-EU trade.
T
40
The US has the largest share of world exports.
F - China
41
Japan is among the top 10 countries with the highest levels of trade with the EU in 2021.
T
42
The Treaty of Lisbon established the three-pillar structure of the European Union.
F - abolished
43
The European Coal and Steel Community (ECSC) was the precursor to the European Union.
T
44
The Treaty of Rome established the European Free Trade Association (EFTA).
F
45
The Euro was introduced as an electronic currency in 2002.
F - 1999, 2002
46
The European Commission represents the general interest of the EU and acts independently of member states' governments.
T
47
The European Court of Auditors is responsible for the financial control of the European Union.
T
48
The European Parliament has the power to propose new legislation.
F
49
The Common Commercial Policy is managed by individual EU member states.
F
50
Trade defense measures include anti-dumping and anti-subsidy actions.
T
51
The EU's Common Commercial Policy does not cover services.
F
52
Which body is responsible for proposing, implementing, and negotiating under the EU's Common Commercial Policy?
a) European Parliament
b) European Commission
c) European Court of Justice
d) Council of the European Union
B
53
The EU's Common External Tariff (CET) applies to imports from:
a) EU member states
b) Countries with a preferential trade relationship with the EU
c) Extra-EU countries with no preferential trade relationship
d) None of the above
C
54
What is the average tariff rate applied by the EU under the CET for most products?
a) 10%
b) 4.5%
c) 6.4%
d) 2.2%
C
55
The EU's anti-dumping measures are primarily aimed at which country?
a) India
b) China
c) United States
d) Brazil
B
56
The Korea-EU Free Trade Agreement resulted in the instant elimination of tariffs on what percentage of Korean manufacturing products?
a) 70%
b) 85%
c) 96.9%
d) 50%
C
57
Which of the following is a key objective of the EU's trade defense instruments?
a) Promoting free trade without any regulations
b) Protecting EU industries from unfair trade practices
c) Reducing tariffs on all imports
d) Encouraging monopolies within the EU
B
58
What are "countervailing measures" in the context of EU trade defense?
a) Measures to increase tariffs on all imports
b) Measures to counteract subsidies provided by foreign governments
c) Measures to promote exports from the EU
d) Measures to eliminate trade barriers within the EU
B
59
Under the Korea-EU Free Trade Agreement, which sector saw the highest immediate tariff elimination?
a) Agriculture
b) Fisheries
c) Manufacture
d) Services
C
60
As of the data mentioned, how many anti-subsidy measures did the EU have in force against China?
a) 5
b) 10
c) 15
d) 20
B
61
Which of the following products saw significant trade increases between the EU and Korea after the Free Trade Agreement?
a) Textiles and garments
b) Machinery, automobiles, chemical products, and electronics
c) Agricultural products
d) Financial services
B
62
Which entity is primarily responsible for trade negotiations on behalf of the EU?
a) European Parliament
b) European Commission
c) European Council
d) Directorate-General for Competition
B
63
Which country was the first to draft an economic cooperation agreement with the Indo-Pacific region?
a) France
b) Germany
c) Japan
d) Korea
B
64
What is the average tariff rate applied by the EU's Common External Tariff (CET)?
a) 3.5%
b) 6.4%
c) 10.2%
d) 14.4%
B
65
Which type of products does the EU provide relatively high protection for under its Common External Tariff?
a) Industrial goods
b) Electronics
c) Agricultural products
d) Pharmaceuticals
C
66
What countries are the primary targets of the EU's anti-dumping measures?
a) India and China
b) Korea and China
c) China and Russia
d) Japan and Australia
B
67
Which of the following is NOT a measure against subsidies according to the EU's trade defense mechanisms?
a) Tariff
b) Minimum import price
c) Price undertaking
d) Import quota
D
68
The EU’s Common Commercial Policy includes setting the Common Commercial Tariff (CCT).
F - Common External Tariff (CET)
69
The European Parliament does not have the authority to propose trade legislation under the EU's Common Commercial Policy.
T
70
The EU’s Common External Tariff (CET) applies equally to all countries, including those with preferential trade relationships with the EU.
F
71
The average tariff rate under the EU’s Common External Tariff is 14.4% for agricultural products.
T
72
The EU has implemented 93 anti-dumping measures, with the majority targeting Russia.
T - 93
F - China
73
Subsidies are financial contributions made by private companies to other private companies.
F - by/ on behalf of government
74
The EU aims to counter indirect subsidies provided via third countries.
T
75
Under the Korea-EU Free Trade Agreement, tariffs were abolished for approximately 70% of products.
F - 99%
76
The Directorate-General for Trade (DG Trade) & Competition plays a key role in the EU's Common Commercial Policy.
T
77
The EU's Most Favored Nation (MFN) Tariff does not apply to countries with which the EU has a preferential trade agreement.
T
78
"Dumping" refers to a non-EU company exporting a product to the EU at a price higher than the product's normal value.
F - lower price
79
The EU's anti-subsidy measures include tariffs, minimum import prices, and price undertakings.
T
80
The EU’s trade with Korea turned into a surplus in 2013.
T
81
One of the main policy tools of the EU’s Common Commercial Policy is to ensure the fair competition within the internal market.
T
82
Safeguard measures can be implemented by the EU to provide temporary relief to industries affected by sudden increases in imports.
T
83
Under the Korea-EU Free Trade Agreement, Korea became the EU's 8th import partner, and the EU became Korea's 2nd import partner.
T
84
According to the Copenhagen Criteria, which of the following is NOT a criterion for EU membership?
a) Stable institutions guaranteeing democracy
b) A functioning market economy
c) The ability to adopt the euro immediately
d) The ability to implement EU laws effectively
C
85
What is the role of Article 50 of the Lisbon Treaty?
a) Establish the economic policies of the EU
b) Regulate the exit of member states from the EU
c) Define the legal framework for EU enlargement
d) Set the criteria for new members joining the EU
B
86
The UK was forced to withdraw from which European mechanism due to a crisis?
a) European Atomic Energy Community (EURATOM)
b) European Exchange Rate Mechanism (ERM)
c) European Monetary System (EMS)
d) European Economic Area (EEA)
C
87
Which of the following is a primary goal of the European Central Bank (ECB)?
a) Promote trade within the EU
b) Maintain price stability
c) Regulate immigration policies
d) Increase employment rates
B
88
Which of the following countries is NOT a member of the Eurozone?
a) France
b) Germany
c) Sweden
d) Spain
C
89
The Stability and Growth Pact primarily aims to:
a) Foster economic cooperation with non-EU countries
b) Ensure fiscal discipline within the EU
c) Harmonize tax policies across the EU
d) Promote social welfare programs in EU member states
B
90
Which treaty established the Economic and Monetary Union (EMU)?
a) Treaty of Rome
b) Maastricht Treaty
c) Lisbon Treaty
d) Treaty of Nice
B
91
What is the purpose of the European Stability Mechanism (ESM)?
a) Provide financial assistance to Eurozone countries in crisis
b) Oversee the EU's external trade policies
c) Regulate the EU's agricultural subsidies
d) Manage the EU's immigration policies
A
92
The United Kingdom held its referendum to leave the EU in:
a) 2014
b) 2015
c) 2016
d) 2017
C
93
Which British Prime Minister initiated the Brexit process by triggering Article 50?
a) David Cameron
b) Theresa May
c) Boris Johnson
d) Tony Blair
A
94
The formal separation of the UK from the EU occurred on:
a) December 31, 2019
b) January 31, 2020
c) March 29, 2019
d) October 31, 2019
B
95
Which agreement outlines the terms of the UK’s withdrawal from the EU?
a) Lisbon Treaty
b) Good Friday Agreement
c) Withdrawal Agreement
d) Schengen Agreement
A
96
Which UK political party was a major advocate for leaving the EU?
a) Labour Party
b) Liberal Democrats
c) Scottish National Party
d) UK Independence Party (UKIP)
D
97
The backstop plan in the Brexit negotiations primarily concerned which region?
a) Scotland
b) Wales
c) Northern Ireland
d) Gibraltar
C
98
What is the term used for the transition period after Brexit?
a) Cooling-off period
b) Adjustment period
c) Implementation period
d) Grace period
C
99
Which document serves as the legal basis for the UK’s departure from the EU?
a) European Communities Act 1972
b) European Union (Withdrawal) Act 2018
c) Treaty of Amsterdam
d) Maastricht Treaty
B
100
The UK’s exit from the EU has significantly impacted which sector?
a) Technology
b) Healthcare
c) Agriculture
d) Financial services
D
101
The euro was introduced as an electronic currency in:
a) 1997
b) 1998
c) 1999
d) 2000
C
102
The physical euro banknotes and coins were introduced in:
a) 2000
b) 2001
c) 2002
d) 2003
C
103
The primary function of the European Central Bank (ECB) is to:
a) Control inflation
b) Regulate trade policies
c) Manage EU budget
d) Supervise banking sector
A
104
The convergence criteria for joining the Eurozone are also known as:
a) Maastricht criteria
b) Lisbon criteria
c) Amsterdam criteria
d) Nice criteria
A
105
The European Financial Stability Facility (EFSF) was established in response to:
a) The 1992 Black Wednesday crisis
b) The 2008 financial crisis
c) The 2010 Eurozone crisis
d) The 2001 dot-com bubble
C
106
Which country was the first to use the European Stability Mechanism (ESM)?
a) Ireland
b) Greece
c) Portugal
d) Cyprus
B
107
The Eurogroup consists of finance ministers from:
a) All EU countries
b) Eurozone countries
c) Schengen Area countries
d) European Free Trade Association (EFTA) countriesA
A
108
Which treaty established the European Monetary Institute, a precursor to the ECB?
a) Treaty of Rome
b) Maastricht Treaty
c) Single European Act
d) Lisbon Treaty
B
109
The European Stability Mechanism (ESM) has a maximum lending capacity of:
a) €500 billion
b) €700 billion
c) €1 trillion
d) €1.2 trillion
A
110
The EU Charter of Fundamental Rights includes the protection of personal data.
T
111
The UK joined the European Economic Community (EEC) in 1957.
F
112
The European Court of Justice ensures that EU treaties are upheld by member states.
T
113
The EU requires unanimity among member states to approve a new country's membership.
T
114
The EU's rule of law principle requires that all EU laws must be upheld by an independent judiciary.
T
115
The Maastricht Treaty laid the groundwork for the creation of the euro.
T
116
The European Central Bank's primary objective is to maintain low inflation rates.
T
117
The Eurozone currently includes over 30 countries.
F - 20
118
The European Stability Mechanism was created in response to the 2008 financial crisis.
F - 2010 EMS Systemic Crisis
119
Which of the following is not a kind of Preferential Trade Agreement (PTA)?
a) First Generation (before 1006) with Non-EU European countries
b) Second Generation (after 2006) with Korea, Japan, Canada
c) Deep and Comprehensive FTAs with Ukraine, Georgia, Moldova
d) Economic Partnership Agreements (EPA) with African and Caribbean countries
B - New Generation
120
Tariff line refers to the item code listed in a tariff schedule of a country.
T
121
Non-tariff barriers to trade (NBT)s do NOT include:
a) Trade plugging
b) Anti-dumping
c) Anti-subsidy
d) Safeguards
A
122
Korea-EU FTA negotiations began in 2000 with the Doha Development Agreement.
F - 2003 - Korean 'FTA Roadmap'
123
France is the biggest EU trade partner of Korea.
F - Germany
124
Which of the following is NOT Korea's top 3 trading partners in Europe?
a) United Kingdom
b) Netherlands
c) Germany
d) France
D
125
Korea has a trade surplus in West European countries and a trade deficit in the Central and East European countries.
F - Surplus - Central and Eastern (Poland, Hungary, Malta) - foreign capital investment, Deficit - Western
126
Korea's biggest export product to Germany is Automobiles, and its biggest import product is Electronic Integrated Circuits.
F - Exports - Immunological products, Imports - Automobiles
127
Korea's top export product with France is Automobiles, and its largest import product is Bags.
T
128
Korea exports Automobiles and imports machines for the manufacturing of semiconductors from the United Kingdom.
F - Netherlands
129
The EU is presently involved in setting global standards in environmental protection, digital trade and level-playing field through which of the following mechanisms?
a) NextGenerationEU
b) Green Plan 2020
c) REPowerEU
d) Carbon border adjustment mechanism (CBAM)
D
130
The EU has 8 Basic Goals, including:
a) Democracy
b) Human Dignity
c) Promoting Peace
d) Rule of Law
C - rest are Basic Values
131
One of the EU's basic values is to establish an economic and monetary union whose currency is the Euro.
F - Basic Goal
132
Equality Pay for Equal Work was established in the EU under the Treaty of the European Communities
T - Treaty of Rome
133
The Copenhagen Criteria for enlargement was included in the Lisbon Treaty.
F - Maastricht Treaty
134
Article 50 of the Treaty of Rome stipulates the conditions to regulate the exit of member states.
F - Lisbon Treaty
135
The Qualified Majority Voting system is applied to membership issues.
F - Unanimity ; QMV - vSensitive
136
There are three stages towards EU membership. Which of the following is not a stage?
a) Negotiating official candidate status
b) Formal membership negotiations
c) Aligning Customs Union to the EU and all member states
d) Joining the EU as full-fledged members
C
137
The Copenhagen Criteria includes political, economic and institutional criteria for membership to the EU. The most important criteria to fulfil is the political criteria.
F - institutional
138
The accession procedure includes decision-making by the President of the European Parliament
F - all member states
139
There are 35 chapters in the Acquis.
T
140
Transitional procedures for potential candidate states do NOT include:
a) economic and financial assistance
b) reconstructions loan
c) developmental loan
d) Customs Union concessions
D - trade concessions - not necessarily Customs Union concessions
141
In the accession of Ukraine to the EU, Ukraine must ensure that anti-money laundering legislation is in compliance with the standards of the Financial Action Task Force (FATF)
T
142
The UK Rebate was negotiated by Winston Churchill
F - Margaret Thatcher
143
The United Kingdom joined the European Monetary System in 1979
F - 1990
144
United Kingdom's accession application was rejected by the German Chancellor Schuman
F - French PM de Gaulle
145
Policy integration in the EU is 100% for Fiscal Policy and less than 100% for Monetary Policy
F - 100% - Monetary, > Fiscal - sensitive
146
Sources of the EU budget include:
a) VAT based on sovereign debt
b) Import duties collected from within the EU
c) Contributions from member states based on their GDP
d) Fines imposed on government agencies
C
147
EU's Own Resources for its budget does NOT include:
a) Customs duties
b) Contributions from VAT collections
c) GNI-based national contributions
d) Common Commercial Policy trade outcomes in a fiscal year
D
148
'Other Resources' of the EU Budget include:
a) Fines imposed on businesses
b) Interest from agricultural banks as part of the Common Agricultural Policy
c) Contributions from candidate states
d) Taxes from salaries of EU citizens working in International Organisations
A
149
Common External Tariff is a type of Traditional Own Resource of the EU budget.
T
150
2/3 of the customs duties collected by the member states goes to the EU.
F - 3/4 (25% - member states - further collection)
151
VAT was introduced alongside the Customs Union in 1970 as part of EU's own budget.
T
152
VAT bases are capped at 50% of GNI for all member states.
T
153
GNI-based national contributions account for 70% of the EU budget.
T
154
Which of the following countries is NOT a net contributor in the EU?
a) Germany
b) France
c) Denmark
d) Sweden
B
155
EU Budget is primarily dedicated to investment in long-term spending plans such as 5-7 year Multiannual Financial Frameworks (MFFs).
T
156
EU's Budget is NOT used for which of the following finance activities?
a) Developing rural areas
b) Protecting external borders
c) Promoting human rights
d) Promoting the development of its Neighbourhood
D
157
The annual EU budget is jointly decided by the Commission, Council, and the Parliament.
T
158
The preliminary budget is submitted to the Council and Parliament by the Commission before the 1st of September.
T
159
The EU Budget is managed through:
a) Shared management
b) Direct management
c) Indirect management
d) All of the above
D
160
The EU Budget is allocated mainly through Multiannual Financial Framework and NextGenerationEU.
T
161
Which of the following member states does NOT receive rebates from the EU?
a) France
b) Netherlands
c) Austria
d) Sweden
A
162
Article 3 of the Treaty of Rome states that the objective of the Common Agricultural Policy is to ensure the supply of products to consumers at reasonable prices.
F - Lisbon
163
Article 40 of the Lisbon Treaty states that the Common Agricultural Policy of the EU is a common organisation of agricultural markets depending on the product concerned.
T
164
Article 41 of the Treaty on the Functioning of the European Union states that the aims of the Common Agricultural Policy is to provide vocational training in the field of agriculture.
T
165
Which of the following Articles of the Lisbon Treaty provides conditions for the grating of aid?
a) Article 39
b) Article 40
c) Article 41
d) Article 42
D
166
Traditional instruments of the Common Agricultural Policy include the Minimum Price Scheme and Export Subsidies. The Minimum Price Scheme does NOT involve:
a) Target price
b) Threshold price
c) Variable levies
d) Overproduction taxes
D
167
The dispute between the American Cairns Group and the EU was based on which instrument of the Common Agricultural Policy?
a) Target price
b) Export Subsidies
c) Variable levies
d) Cohesion funding
B
168
The Common Agricultural Policy does NOT use which of the following Actions in implementation?
a) income support through direct payments
b) income support through indirect payments
c) market measures
d) rural development measures
B
169
Criticisms of the Common Agricultural Policy include:
a) Price variation
b) Price distortion
c) Direct income payments
d) Discrimination between EU and non-EU farmers
B
170
An example of friction in international trade because of the CAP is the dispute between Cairns Group and the EU.
T
171
The 1968 Mansholt Plan of CAP reform was a success.
F - too early to implement - 5 million hectares, family farms, viable farmers, 5 million farmers
172
The 1992 MacSharry Plan was a success because it decoupled income support from production support.
T
173
The pillars of the CAP include diversification of business and young farmer support programs.
T
174
The 2000 CAP reform decoupled subsidies and production.
F - 2003
175
The 2017 CAP Communication on the "Future of Food and Farming" is based on which of the following?
a) Strategic reorientation
b) Autonomous flexibility
c) Independent mechanism
d) Targetted resource distribution
A
