Which Feature of a Common Market Differentiates It from a Customs

question 70

Multiple Choice

Which feature of a common market differentiates it from a customs union?

• A) Harmonization of members' tax rates
• B) A common currency
• C) A common external trade policy toward nonmembers
• D) Ability of factors of production to move freely between members

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Definitions:

Efficiently

Attaining the highest level of efficiency by minimizing unnecessary effort or cost.

Externality

A financial consequence related to a product or service that results in advantages or expenses for individuals not involved in making decisions about the amount of production or consumption.

Economic Efficiency

The optimal allocation of resources where goods and services are produced at their lowest possible cost and where those goods and services align with consumers' preferences.

Government Intervention

Actions taken by a government to influence or directly regulate the economy, often to correct market failures and promote economic stability.