Twenty-Seven Countries in Europe Have Formed the European Union (EU)

question 158

Multiple Choice

Twenty-seven countries in Europe have formed the European Union (EU) .After the EU was formed it

• A)eliminated all tariffs among its member countries.
• B)completed a trade treaty (NAFTA)that reduced tariff rates between the EU and North American countries.
• C)greatly decreased imports and exports among its member countries.
• D)barred imports of 747 jumbo jets by its member countries; all EU countries must now buy jets from Airbus,a European company.

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Definitions:

Unemployment

The situation when individuals who are capable of working and are actively seeking a job are unable to find employment.

Low Sacrifice Ratio

A condition indicating that an economy can reduce inflation with a relatively small decrease in economic output or increase in unemployment.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Central Bank

An institution that manages a country's currency, money supply, and interest rates. Central banks also oversee the commercial banking system of their respective countries.