Which Feature of a Customs Union Differentiates It from a Free

question 11

Multiple Choice

Which feature of a customs union differentiates it from a free trade area?

• 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

---

Definitions:

Technological Breakthroughs

Technological breakthroughs refer to significant advancements or discoveries in technology that drastically change existing processes, products, or services, often leading to new industries or revitalization of old ones.

Investment Projects

Initiatives or activities undertaken to allocate resources in the expectation of future benefits or returns.

Loanable Funds

The total supply of money available for borrowing or spending in the economy, including savings and investments.

Medicare

A federal health insurance program in the United States for people aged 65 and older, and for some younger people with disabilities.