Cross-board concept practice · originally a CIE 9708 question, used here because the concept is the same. It is not IB Economics past-paper material.
Question 1
The introduction of the euro as the common currency of much of Western Europe created a powerful economic group. What is least likely to have been the intention?
Answer: D.
This is the least likely intention of introducing the euro as the common currency. The primary goal of the euro was to facilitate economic integration within the eurozone countries and promote internal trade and economic growth among the member states. The focus was on creating a larger and more stable single market through the elimination of currency exchange costs and fluctuations, which in turn was expected to lead to increased trade among eurozone countries.
Enhanced international trade with non-members was not the immediate goal of introducing the euro. While a stronger eurozone might indirectly benefit its members in their international trade relations, the main aim was to boost economic activity within the region itself. Additionally, the euro's impact on international trade with non-members could be influenced by various other factors such as global economic conditions, trade agreements, and competitiveness of the eurozone economies, rather than solely relying on the introduction of the euro as the common currency.
Cross-board concept practice · originally a CIE 9708 question, used here because the concept is the same. It is not IB Economics past-paper material.
Question 2
What is the difference between a customs union and a free trade area?
Answer: A.
What this practice covers
Real questions, the answer key from the mark scheme, and the explanation that goes with it. Each one is marked the moment you pick, the correct option is shown whether or not you found it, and the full explanation opens either way. No account needed to answer them.
These questions are drawn from past Cambridge papers, mapped across to this topic because the concept is the same. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
What examiners see students get wrong here
These are the errors that cost marks on economic integration, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Confusing a free trade area with a customs union, the common external tariff is the difference.
- Explaining trade creation without trade diversion, or vice versa. They must be weighed together.
- Claiming integration is unambiguously beneficial. The net effect depends on which effect dominates.
- Treating trade diversion as beneficial because consumers pay less, the fall in price comes partly from lost tariff revenue, and production has moved to a less efficient producer.
- Forgetting that monetary union removes both the interest rate and the exchange rate as adjustment tools.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Economic Integration revision notes.