Economic Integration of Trade Blocs Includes All of the Following

question 85

Multiple Choice

Economic integration of trade blocs includes all of the following except:

• A) Region-wide policies for agriculture and energy
• B) Free movements of products and services within the group
• C) Harmonization of product standards
• D) Establishment of a common currency

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Definitions:

Explicit Costs

Direct, out-of-pocket expenses incurred by a firm or individual for business operations or activities.

Accounting Profits

The financial gain calculated by subtracting total explicit costs from total revenues, using generally accepted accounting principles.

Economic Profits

Profits calculated by subtracting both explicit and implicit costs from total revenues; also known as supernormal profits.

Implicit Costs

Costs that represent the opportunity costs of using resources owned by the firm for its own production rather than selling those resources.