An Organization of Nations Formed to Promote the Free Movement

question 20

True/False

An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called an economic community.

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Definitions:

Production Possibilities

The various combinations of goods and services that can be produced from a fixed set of resources.

Circular-Flow Diagram

An economic model depicting how money, goods, and services move through an economy between households and firms.

Economy

An organized system of production, distribution, and consumption of goods and services within a specific geographical area, involving various agents and market forces.

Circular-Flow Diagram

A model that illustrates the flow of goods and services and money between households and businesses in an economy.