Economic Integration Whereby Countries Remove All Barriers to Trade Among

question 73

Multiple Choice

Economic integration whereby countries remove all barriers to trade among themselves,but each country determines its own barriers against nonmembers,is called a(n) ________.

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

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Definitions:

Variable Costs

Costs that change in proportion to the level of activity or volume of output in a business.

Law of Diminishing Returns

An economic principle stating that, holding all else constant, as one input variable to the production process is increased, there comes a point when the added output from each additional unit of input decreases.

Productive

refers to the capability of producing significant amounts of goods and services, or contributing to economic output efficiently.

Intelligence

The ability to learn, understand, and make judgments or have opinions that are based on reason.