Which of the Following Is True of Regional Economic Integration

question 120

Multiple Choice

Which of the following is true of regional economic integration?

• A) Regional economic integration is good for producers because they do not have to adapt to a more competitive environment.
• B) By creating a single market, the EU aimed to lower the price for goods and services across the bloc.
• C) Regional economic integration poses a challenge for consumers as it increases the prices of goods.
• D) The members of the World Trade Organization have refused to participate in any regional trade agreements.
• E) Agreements designed to promote freer trade within regions have failed to produce gains from trade for all member countries.

---

Definitions:

Equilibrium Price

The market price at which the quantity of a good demanded equals the quantity supplied, leading to market stability.

Inverse Demand Function

A mathematical representation showing the relationship between the quantity demanded of a good and its price, typically derived by solving the demand function for price.

Inverse Supply

The inverse supply function represents the relationship between the price of a good and the quantity supplied, expressed as price as a function of quantity, contrasting with the typical supply function which is quantity as a function of price.

Tax

An obligatory fiscal contribution or alternative form of charge enforced by a government body on taxpayers to support government activities and public spending.