Which of the Following, According to the Maastricht Treaty, Is

question 7

Multiple Choice

Which of the following, according to the Maastricht treaty, is a condition for participating in the common currency area?

• A) At least half the population of the country must speak German, French and English.
• B) A relatively small budget deficit- to- GDP ratio.
• C) A relatively small amount of foreign aid to countries outside the area.
• D) A promise that any future devaluations will be announced in advance.
• E) The replacement of the country's prime minister with an appointee of the new "United States of Europe".

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Definitions:

Absolute Advantage

A condition in which a country, individual, or company can produce a specific good at a lower cost in resources than another.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors.

Knitting

The craft or action of creating fabric by interlocking loops of yarn using needles.

Baking

The process of cooking food by dry heat, typically in an oven.