How Does the Eurozone Compare with the USA as a Possible

question 12

Multiple Choice

How does the eurozone compare with the USA as a possible optimal currency area (OCA) ?

• A) The eurozone has a higher degree of labour mobility than the USA and labour law is much less restrictive in the eurozone than in the USA. On these measures, the eurozone is more likely to be an OCA than is the USA.
• B) The eurozone has a lower degree of labour mobility than the USA and labour law is much more restrictive in the eurozone than in the USA. On these measures, the eurozone is less likely to be an OCA than is the USA.
• C) The eurozone has a higher degree of labour mobility than the USA but labour law is much more restrictive in the eurozone than in the USA. On these measures, it is hard to judge whether the eurozone is more or less likely to be an OCA than is the USA.
• D) The eurozone has a lower degree of labour mobility than the USA but labour law is much less restrictive in the eurozone than in the USA. On these measures, it is hard to judge whether the eurozone is more or less likely to be an OCA than is the USA.

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Definitions:

Citizenship

The status of being a recognized member of a country, with specific rights and duties as defined by that country's laws.

Reservations

Designated areas of land set aside by the government for the use of Indigenous tribes, often recognized as sovereign entities.

Marriages

Legally recognized unions between individuals that establish rights and obligations between them, as well as with any offspring and in-laws.

Henry Luce

An influential American magazine magnate who co-founded Time, Life, Fortune, and Sports Illustrated, shaping 20th-century media.