Which Form of Economic Integration Occurs When Participating Countries Abolish

question 109

Multiple Choice

Which form of economic integration occurs when participating countries abolish tariffs on trade among themselves, establish a common tariff on imports from nonmembers, and permit free movement of capital and labor within the organization?

• A) free trade area
• B) economic union
• C) common market
• D) monetary union

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Definitions:

Sampling Distribution

The chance distribution of a specified statistic obtained from a random sample, employed for making deductions about the overall population.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean.

Central Limit Theorem

A statistical theory stating that the sampling distribution of the sample mean of any independent, random variable will approximate a normal distribution, given a sufficiently large sample size.

Sampling Distribution

A sampling distribution is a probability distribution of a statistic obtained through a large number of samples drawn from a specific population, used to infer properties of the population.