Question

1. Why is the EMU malfunctioning? -mark the correct answer.

   		Because not all the EU members are participating
   		Because the British did not join the EMU
   		Because the Euro lost the value against the dollar in the recent months
   		Because it is not the optimal currency area with common budget and monetary policy

1. Why it is so difficult to have a common fiscal policy in the Eurozone and the EU? -mark the correct answer.

   		This is constitutional issue not economic or political
   		This is a fundamental issue of the supranational powers of the EU over the national policies
   		This is an issue of the lack of common currency among all EU members
   		This issue is currently being resolved by the EU Parliament

3.5 points

1. Why the EU was created? -mark the incorrect answer.

   		The EU was created because the West was engaged in Cold War and Europe had to be fast rebuild
   		Germany wanted to be unified and only unified Europe would allow that to happen
   		The Europeans wanted to merge the markets to help their growth
   		The Europeans wanted to confront the power of the USA after the WWII

3.5 points

1. Why the reforms proposed by Mikhail Gorbachev failed to save communist system in the Soviet Union? -mark the incorrect answer.

   		Gorbachev reforms were called perestroika and glasnost
   		The reforms led to inflation but improvement of the supply of goods and food
   		The wages were higher in the cooperative sector which upset many people who worked in the state enterprises
   		The reforms would have succeed but the West did not want to lend money to Gorbachev government

3.5 points

1. Why we can say that Germany plays the same role for the EU as China for the USA? -mark the correct answer.

   		Germany imports capital like China
   		Germany has a financial account surplus
   		Germany exports manufacturing goods and imports food
   		Germany is a net exporter of capital and holds the debt of the indebted Europeans