Which of the Following Was a Customs Union Before Becoming

question 87

Multiple Choice

Which of the following was a customs union before becoming a common market?

• A) NAFTA
• B) OECD
• C) The European Steel and Coal Community
• D) The European Union
• E) The Council for Mutual Economic Assistance

---

Definitions:

Tariff

A tax imposed on imported goods, intended to increase the price of foreign products to protect domestic producers.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specific time frame.

Comparative Advantage

The capacity of a nation or company to manufacture a specific good or service with a lower opportunity cost compared to its rivals.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service more efficiently than competitors with the same resources.