Which Political Factor Resulted in the Establishment of the European

question 26

Multiple Choice

Which political factor resulted in the establishment of the European Union (EU) ?

• A) spectacular success of the North American Free Trade Agreement (NAFTA)
• B) trade impasse following the oil crisis in the 1970s that occurred due to collusion among oil producing nations
• C) devastation of Western Europe during two world wars and the desire for a lasting peace
• D) emergence of Japan as an economic and industrial superpower despite the nuclear holocaust
• E) rise of communism in Europe

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Definitions:

Equilibrium Price

The cost at which the amount of a product sought by consumers matches the amount available from suppliers, leading to equilibrium in the market.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase, typically depicting a downward slope.

Competitive Market

A market structure characterized by numerous buyers and sellers, ensuring no single participant has the power to significantly influence prices.

Average Total Cost

The per unit cost of production, calculated by dividing the total cost of production by the quantity of output produced.