Multiple choice LOCATION EFFECTS, ECONOMIC GEOGRAPHY

Question 1

1) The regional policies of the EU now account for about half of the EU's budget, but in the 1960s the figure was much higher. A) True B) False

Accepted Answer

B) False

Question 2

2) Spending on regional policies increased significantly when Spain and Portugal joined the EU. A) True B) False

Accepted Answer

A) True

Question 3

3. The 2004 and 2006 enlargements let in 12 nations which were systematically poorer than the EU15 incumbent nations, so the fraction of the EU budget spend on poor regions was increased substantially. True or False?

Accepted Answer

False

Question 4

4. In 2003, the Cohesion Fund could be spent only in Ireland, Greece, Portugal and Spain. True or False?

Accepted Answer

True

Question 5

5. Most of the structural funds are spent on so called Objective 1 regions since these are the regions dominated by declining industries. True or False?

Accepted Answer

False

Question 6

6. The main objective of Objective 2 spending is to: A) strengthen the attractiveness and competitiveness of regions. B) promote cross-border cooperation across European countries. C) promote urban development of remote areas. D) reduce income differences across EU regions.

Accepted Answer

A) strengthen the attractiveness and competitiveness of regions.

Question 7

7. Economic activity in the EU is very concentrated geographically, for example: A) about 50% of economic activity takes place on just 14% of the land area. B) about 90% of EU industry is located in Germany. C) about 80% of economic activity is located in just 10% of the land area. D) None of the above is true.

Accepted Answer

A) about 50% of economic activity takes place on just 14% of the land area.

Question 8

8. The peripheral regions of the EU suffer from: A) deforestation B) excessive investment in agricultural activities. C) higher than average unemployment, higher than average youth unemployment and higher than average poverty. D) excessive dependence on world markets.

Accepted Answer

C) higher than average unemployment, higher than average youth unemployment and higher than average poverty.

Question 9

9. Between the mid 1980s and the end of the 1990s: A) EU per capita incomes at the national level diverged. B) EU per capita incomes at the national level converged, but per capita incomes at the sub-national levels diverged. C) EU per capita incomes at the national level diverged, but the per capita incomes at the sub-national levels converged. D) EU per capita income distribution did not change much.

Accepted Answer

B) EU per capita incomes at the national level converged, but per capita incomes at the sub-national levels diverged.

Question 10

10. Indicate the combination of facts that are true: (i) European integration has been accompanied by only modest relocation of industry among nations, at least when one lumps all forms of manufacturing together; (ii) The little movement that there has been tends to lean in the direction of manufacturing activities having become more geographically dispersed across nations, not less; (iii) Most European nations have become more specialised on a sector-by-sector basis; (iv) At the subnational level, we see that industry is become more concentrated spatially. A) Only points (i) and (iii) are true. B) Points (i) to (iii) are true. C) Only points (ii) and (iv) are true. D) All points are true.

Accepted Answer

D) All points are true.

Question 11

11. According to the Heckscher-Ohlin comparative advantage approach, a reduction in trade barriers should: A) lead big nations to gain industry. B) lead small nations to gain industry. C) lead nations to specialise in industries that are intensive dependants on the factors in which the nations are relatively well endowed. D) None of the above.

Accepted Answer

C) lead nations to specialise in industries that are intensive dependants on the factors in which the nations are relatively well endowed.

Question 12

12. According to the new economic geography approach, a reduction in trade barriers should: A) lead big nations to gain industry. B) lead small nations to gain industry. C) lead nations to specialise in industries that are intensive dependants on the factors in which the nations are relatively well endowed. D) None of the above.

Accepted Answer

A) lead big nations to gain industry.

Question 13

13) The Krugman index of specialization shows that most EU nations have become more and more specialised in their comparative advantages. A) True B) False

Accepted Answer

A) True

Question 14

14) Which of the following elements cannot be considered as a dispersion force? A) The price of land is usually higher in highly populated areas. B) Congestion C) Technology spillovers D) Tougher competition in dense markets.

Accepted Answer

C) Technology spillovers

Question 15

15) According to the demand-linked circular causality: A) Firms tend to locate where intermediate goods are cheaper B) Firms tend to locate where the range of locally available intermediate goods is wider. C) Firms tend to locate where the market is bigger. D) Firms tend to locate where the production cost is lower.

Accepted Answer

C) Firms tend to locate where the market is bigger.

Question 16

16) According to the cost-linked circular causality: A) Firms tend to locate where the range of locally available final goods is wider. B) Firms tend to locate where the range of locally available intermediate goods is wider. C) Firms tend to locate where the market is bigger. D) Firms tend to locate where tariffs are lower.

Accepted Answer

B) Firms tend to locate where the range of locally available intermediate goods is wider.

Question 17

17) The accessibility index A) increases as the region is remote from the rest of its partners. B) measures a region’s closeness to other regions that have important economic activity. C) measures the average distance between a region and its closer neighbors. D) is never affected by the form of transport used to access close markets.

Accepted Answer

B) measures a region’s closeness to other regions that have important economic activity.

Question 18

18) Over the period 2007-2013, almost ….. of the total cohesion funds were spent on the first objective “Convergence”. A) 10% B) 30% C) 50% D) 80%

Accepted Answer

D) 80%

Question 19

19) The principle of additionality that guides Structural Funds states that A) spending should be part of broader development programmes drawn up by the EU. B) the Commission, the Member State concerned, the regional and local authorities should cooperate in spending. C) EU funding should not be substitutes for national funds. D) spending should be monitored and evaluated by the Commission, the Member State concerned,and the local authorities.

Accepted Answer

C) EU funding should not be substitutes for national funds.

Question 20

The development of the regional policy was a response to the political power of the poor countries within the institutional structure of the EU. a. Correct b. Incorrect.

Accepted Answer

a. Correct

Question 21

Regional funds go mainly to regions where the average income is below a. 45% of the average in the EU. b. 60% of the average of the EU. c. 75% of the average of the EU.

Accepted Answer

c. 75% of the average of the EU.

European Integration (Fach) / Multiple choice LOCATION EFFECTS, ECONOMIC GEOGRAPHY (Lektion)