The Union Created When Member Countries of an Economic and Monetary

question 25

Multiple Choice

The union created when member countries of an economic and monetary union work closely with one another to arrive at common defense and foreign policies and behave as a single country is known as a(n) _____.

• A) customs union
• B) economic union
• C) free trade area
• D) common market
• E) political union

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Definitions:

Quantity Supplied

The actual amount of a good or service producers are willing to sell at some specific price.

Supply Curve

A graphical representation that shows the relationship between the price of a good and the quantity of the good that suppliers are willing and able to sell, holding other factors constant.

Price-elastic

Refers to the responsiveness of the demand for a good to a change in its price; highly price-elastic goods see significant changes in demand when prices fluctuate.

Shifts to the Right

A phrase indicating an increase in supply or demand in economic graphs, typically showing improvement or growth.