1. The form of economic integration where countries remove all barriers to trade among themselves, implement a common trade policy towards non-members, allow free movement of capital and labor and harmonize economic policies is called:

1. A free trade area
2. A customs union
3. A common market
4. An economic union
5. A political union

2. A government’s _________________ legislation allows it to block mergers between foreign and domestic firms.

1. Transfer pricing
2. Income trust
3. Anti-trust
4. Functional lubrication
5. Money laundering

3. The Human Development index measures welfare on three dimensions: literacy rates, life expectancy and upward social mobility. True/False?

1. True
2. False

4. Purchasing Power Parity (PPP) is the amount of currency which, when converted into special drawing rights, allows individuals to purchase the same basket of goods as the average US consumer. True/False?

1. True
2. False

5. Engel’s laws state that as a family’s income rises, the percentage of the money it spends on food will increase because of the reliance on buying prepared food out of the home, i.e. restaurants and other fast food outlets. True/False?

1. True
2. False