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European Integration (Subject) / Multiple choice EU COMPETITION (Lesson)
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- 1. Competition policy is an exclusive competency of the EU. A) True B) False A) True
- 2. The European Commission is in charge of making sure that Member States do not provide unfair subsidies to their firms. A) True B) False A) True
- 3. The EU allows Member State to subsidise some firms, but controls these cases strictly. A) True B) False A) True
- 4) Allowing collusion among EU firms would help Europeans since the gains to firms and their workers would outweigh the loses to consumers A) True B) False B) False
- 5) The Commission is in charge of discovering and breaking up price-fixing cartels in the EU. A) True B) False A) True
- 6) A firm implicated in a cartel can get immunity by revealing the cartel to the Commission. A) True B) False A) True
- 7) The main elements of EU competition policy are: A) ensure that firms do not abuse a dominant position in the market. B) ensure that no firm attains a dominant position in the market C) ensure that firms do not engage in anticompetitive practices D) a) and c) D) a) and c)
- 8) In the BE-COMP diagram analysis, integration plus subsidies that allow all firms that existed before integration to stay in business will: A) lower welfare and this is why state aid is forbidden in the EU. B) result in overall welfare gains but not as great as if industry rationalisation were allowed to occur. C) would cost EU taxpayers more than EU consumers would gain. D) none of the above is true. B) result in overall welfare gains but not as great as if industry rationalisation were allowed to occur.
- 9) The power to policy anticompetitive practices was granted to the European Commission in: A) The Treaty of Rome B) The Single European Act C) The Maastricht Treaty D) The Constitutional Treaty A) The Treaty of Rome
- 10) It is often the case that firms could charge a higher price in one Member State than another if there were no arbitrage. So some firms have sought to segment that markets with: A) Exclusive territories for retailers and market sharing agreements. B) Tariffs and quotas. C) Technical barriers to trade in the form of Single Market directives. D) B and C are true. A) Exclusive territories for retailers and market sharing agreements.
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- 11) Perfect collusion is where: A) Firms all agree to charge the monopoly price and divide the market among themselves. B) A single firms takes the lead in price setting and controls the price through mergers and acquisitions. C) Firms charge the highest price they can taking as given the price charged by other firms. D) All of the above. A) Firms all agree to charge the monopoly price and divide the market among themselves.
- 12) The EU allows production subsidies in the case of: A) firms located in disadvantaged regions, but these subsidies must be capped. B) Member States who are particularly power in the Council of Ministers. C) industries where the subsidy does not distort Single Market competition, such as cultural events D) none of the above A) firms located in disadvantaged regions, but these subsidies must be capped.
- The day-to-day policy of the EU-anti-trust-approach is mainly in the hands of the a. European Council b. Council of the European Union c. European Parliament d. European Commission. d. European Commission.
- The EU forbids mergers within the EU and even outside the EU, because mergers always result in manipulation of markets a. Correct b. Incorrect. b. Incorrect.
- The EU Parliament is the key organization in charge of breaking up price-fixing cartels in the EU a. true b. false b. false