What this practice covers
These questions are drawn from past IB Economics papers and filtered to economic integration. 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.
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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.