Did the 1957 Treaty of Rome Turn the EU into a Truly

question 18

Multiple Choice

Did the 1957 Treaty of Rome turn the EU into a truly unified market?

• A) Yes, it paved the way for the current EMU.
• B) No, although it established a customs union, it failed to remove barriers to the movement of goods and factors within Europe.
• C) No, it was only after the German unification and locating the ECB in Frankfurt that unity was achieved.
• D) No, since the Northern members of the EU had larger endowments of capital and skilled labor.
• E) No, the Treaty of Rome created more trade barriers between European countries.

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Definitions:

Mental Accounting

The process by which individuals categorize and evaluate economic outcomes by organizing them into specific accounts in their minds.

Framing Bias

A cognitive bias where people decide on options based on whether the choices are presented with positive or negative connotations.

Positively Correlated

A relationship between two variables where they move in the same direction, meaning as one variable increases, the other does as well.

Trading Activity

The volume or quantity of buying and selling transactions in a financial market over a specific period.