When Free Mobility of Factors of Production Is Added to a Common

question 97

True/False

When free mobility of factors of production is added to a common market, the result is a customs union.

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Definitions:

Market Demand Curve

Graphical representation of the total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.

Negative Externalities

Unintended adverse effects or costs imposed on a third party or the environment as a result of an economic activity.

Opt Out

The action of choosing not to participate in something.